Ikea Invades America 1

IKEA's Product Strategy 3

Low Price with Meaning 4

Shopping at IKEA 8

Looking Forward 8

Source: Compiled from IKEA Web site: <www.ikea- usa.com>. FY 2003: September 2002 to August 2003.

Exhibit 4 IKEA Group: Store Locations (as of August 31, 2002)

Location No. Of Stores

Australia	4
Austria	5
Belgium	4
Canada	9
China	1
Czech Republic	3
Denmark	4
Finland	1
France	13
Germany	30
Hungary	2
Italy	7
Netherlands	9
Norway	5
Poland	7
Russia	2
Slovakia	1
Spain	3
Sweden	13
Switzerland	6
United Kingdom	11
United States	14

Source: Compiled from IKEA Web site: <www.ikea-usa.com>.

Exhibit 5 IKEA Group: Purchasing by Region (FY 2003)

Region % Purchasing

HARVARD BUSINESS SCHOOL 1

Ikea Invades America 1

IKEA's Product Strategy 3

Low Price with Meaning 4

Shopping at IKEA 8

Looking Forward 8

Source: Compiled from IKEA Web site: <www.ikea-usa.com>. FY 2003: September 2002 to August 2003.

Exhibit 7 IKEA Stores in the U.S. (as of August 31, 2002)

Location	Opened	Size (m2)
Philadelphia	June 1985	14,900
Washington - Woodbridge	April 1986	28,000
Baltimore	September 1988	18,700
Pittsburgh	July 1989	15,700
New Jersey - Elizabeth	May 1990	32,700
Los Angeles - Burbank	November 1990	22,500
New York - Long Island	May 1991	20,500
Los Angeles - City of Industry	May 1992	13,300
Los Angeles - Tustin	May 1992	13,500
Houston	July 1992	14,600
Los Angeles - Carson	November 1992	19,900
Chicago - Schaumburg	November 1998	40,000
San Francisco - East Bay	April 2000	25,500
San Diego	September 2000	17,700

Source: Compiled from IKEA Web site: <www.ikea-usa.com>.

Exhibit 8 Leading U.S. Furniture Retailers (ranked by 2002 sales of furniture and bedding)

Rank Name

1. Wal-Mart

2. Rooms To Go

3. Ethan Allen

4. Levitz

5. La-Z-Boy

6. Office Depot

7. Sam's Club

8. Federated Department Stores

9. Berkshire Hathaway (incl. Jordan's)

10. Costco

11. Staples

12. Havertys

13. Value City

14. IKEA

15. Pier 1 Imports

16. JC Penney

17. Kmart

18. May Department Stores 1 9 Art Van

    20. Rhodes

    21. Office Max

    22. Thomasville Home Furnishings

    23. Lowe's

    24. Big Lots

    25. W.S. Badcock

Source: Adapted from Amrit Tewary, "Household Durables," Standard & Poor's Industry Surveys, November 6, 2003.

1Professor Youngme Moon prepared this case. This case was developed from published sources. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management.

Copyright © 2004 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School.

2 In 2002, InterBrand, a marketing research firm, ranked IKEA 44^th on its list of the world's most valuable brands, ahead of Apple, Pepsi, MTV, Harley-Davidson, and Xerox. See "The 100 Best Global Brands by Value," <www.interbrand.com>.

3 Quote from Lisa Margonelli, "How IKEA Designs Its Sexy Price Tags," Business 2.0, October 2002.

4 IKEA owned some of its suppliers, but even these company-owned suppliers had to compete against independent contractors for IKEA's business.

5 Quote from Lisa Margonelli, "How IKEA Designs Its Sexy Price Tags," Business 2.0, October 2002.

6 Alexander von Vegesack, director of the Vitra Design Museum in Germany, who in 1999 mounted an exhibit on the history of IKEA, quoted in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

7 Quoted in Christopher Brown-Humes, "An Empire Built On a Flat-Pack," FT.com (London), November 23, 2003, p. 1.

8 Based on data gathered by the American Furniture Manufacturers Association (AFMA), an industry trade group, as described in Amrit Tewary, "Household Durables," Standard & Poor's Industry Surveys, November 6, 2003.

9 Christian Mathieu, external-marketing manager for Ikea North America, quoted in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

10 Ken Nordin, previously IKEA's sales and marketing manager for North America, quoted in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

11 Josephine Rydberg-Dumont, managing director of IKEA of Sweden, quoted in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

12 Based on IKEA's internal market research, described in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

13 IKEA Web site: < www.ikea-usa.com>.

14 IKEA Web site: <www.ikea-usa.com>.

15 IKEA Web site: <www.ikea-usa.com>.

16 Amrit Tewary, "Household Durables," Standard & Poor's Industry Surveys, November 6, 2003.

17 Howard Davidowitz of Davidowitz & Associates, a retail consulting firm, quoted in Lisa Margonelli, "How IKEA Designs Its Sexy Price Tags," Business 2.0, October 2002.

18 Anders Dahlvig, president of the IKEA Group, quoted in Christopher Brown-Humes, "An Empire Built On a Flat-Pack," FT.com (London), November 23, 2003, p. 1.