Sales on Ikea

IKEA is the brainchild of the Swedish entrepreneur, Ingvar Kamprad. To its many admirers, IKEA is the cult-like furniture store featuring inexpensive products with minimalist European design. The main reason for the company's striking world-wide success is its relentless focus on innovation - both in terms of products as well as processes.

1. One IKEA executive says that the current global economic situation has "pushed innovation" at the company. In fact, he says, "This is a great time to be more innovative." Explain what he means. What he is saying is that the recession has definitely pushed them to be more aggressive in terms of their presence on the web. It's pushed innovation in terms of how we drive traffic to the stores. So, it has been in many ways a good challenge for them. The current economy also allows them to try things that may have been sacred cows in the past. It really demands that they try different approaches. This is a great time to be more innovative, and to call out the things that really aren't working.

2. You're an IKEA store manager, and corporate headquarters has instructed you to change the layout of your store. The change must be "dramatic," but the details are up to you. Wanting to make the most of the opportunity, you intend to manage the project as planned change. What steps will you take to ensure that you'll be successful? First I would take the time to think about what I would want to see when I first walk in the door and what should be displayed in the back. Eventually, I will find a wonderful traffic flow and easy to follow directions for my clients. First thing to work on is the front part of the store. I would display some of my best items in the front of the store but be cautious! If you put the most expensive item at the front door, it could easily promote shoplifting. Show the best quality you have, not necessarily the most expensive. I would purchase racks that have glass tops, or shelving across to display even more. Following these simply steps could help me to be successful with the layout of the store.

3. There's an IKEA TV ad that features a discarded lamp, forsaken on a rainy night in some American city. A man looks at the camera and says in a sympathetic Swedish accent, "Many of you feel bad for this lamp," and then, after a well-timed pause, "That's because you're crazy." What's the message of the commercial? This commercial is saying to just buy new products from IKEA out with the old and in with the new. To watch this commercial it makes you feel sad for the lamp, but why not at the same time upgrade your home with the affordable and quality merchandise needed to brighten your home.