IKEA Global Marketing Strategy1. What were the reasons for IKEA's success in the furniture retail sector in Sweden? The reasons for IKEA's success in the furniture retail industry were low prices and IKEA's resilience. First, Ingvar Kamprad, the founder of IKEA, began selling furniture in his mail order company. Then he faced a social problem and turned it into a business opportunity. Since 1935, furniture prices have risen faster than any other retail good, by 41%. Kamprad responded by creating a line of furniture priced so that everyone could afford it. The current furniture cartel attempted to stifle Kamprad's growth and success. The cartel prohibited Kamprad from selling directly to consumers at trade shows, then managed to convince the manufacturers' cartel to stop supplying furniture to Kamprad. Kamprad responded by sourcing elsewhere and may now charge even lower prices. IKEA's success is largely due to low prices and Kamprad's ability to take advantage of bad situations.2. What forces are driving changes in the industry? Originally, the post-war boom helped drive change in the furniture industry. World War II drained the lives of many families and many sought innovative new changes. The tradition of passing down furniture from generation to generation was rapidly disappearing in most families. IKEA helped shape the post-war household by offering new styles of furniture at a very reasonable price. With low costs came an innovative new style and a comfortable atmosphere in which to shop.4. What factors do you consider critical for competitive success in the furniture sector? Ingvar Kamprad believes that a company's "identity", corporate guidelines, profile, selection, quantity, quality and price are critical to the success a company will have in the furniture industry. . Another factor that could contribute to a company's success in the furniture industry is Internet marketing and sales along with the company's merchandise catalogs. The product range should cover the entire area of ​​the house, both inside and outside, with fixed or loose furniture. furniture. The profile that a company will want to bring to the table will give competitors and buyers a direct image of the company. There should be a large selection of products along with quantity of stock to be sold to all customers. Quality and price are also an important factor, but it should be left up to the consumer to decide what they want to do in the long term..