IKEA and Their Furniture (Store)

Strategic decisions drive the culture. Beliefs drive behavior.

Most retailers try to make shopping easier.  IKEA moves most of the work onto the customer.  Yet, customers see this as a fair trade-off .

Combine  American sensitivity to price with European minimalism and you have an IKEA store. IKEA created a strategy that reduced the cost structure that customers saw as a reasonable value proposition. Entering the store, customers are handed a pick ticket used by the warehouse to pull the selected item from inventory. The journey through the store, in a maze of lines on the floor, requires the customer to consider featured items in a process to build the purchase ticket. The path isn’t simply about navigation. It is designed to expose customers to ideas they weren’t planning to buy.

Manicured assembly instructions complete the trade, customers are willing to self-assemble in exchange for a more reasonable price. The instructions are part of a carefully flat packed item designed to fit inside most every American automobile. Delivery may be available, but the strategy is to get it all in the customer vehicle and get them on their way. IKEA intentionally leaves the final steps of manufacturing and delivery to the customer. In return, the customer receives a lower price.  Assembly and last mile logistics are not part of the IKEA business model.

IKEA isn’t successful because it sells inexpensive furniture.  It succeeds because management believed customers would willingly trade convenience for value.  The store, the warehouse, the flat-pack box, the assembly instructions—even the maze through the showroom—are simply observable behaviors flowing from that single belief.

Two cultures, minimalism and price sensitivity, meet inside of a business model that endures. It’s the way we see the world.

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