IKEA Global Marketing Strategy1. What were the reasons for IKEA's successful entry into the furniture retail sector in Sweden? The sources of IKEA's successful entry into the furniture retail sector were IKEA's low prices and resilience. First, Ingvar Kamprad, the founder of IKEA, started selling furniture through his mail order business. He then faced a social problem and turned it into a business opportunity. Since 1935, furniture prices have increased faster than any other retail good, at 41%. Kamprad responded by creating a line of furniture at a price everyone could afford. The current furniture cartel was trying to stifle Kamprad's growth and success. The cartel banned Kamprad from selling directly to consumers at trade shows, then managed to persuade the manufacturing cartel to stop supplying furniture to Kamprad. Kamprad responded by sourcing elsewhere and could now charge even lower prices. IKEA's success was largely due to low prices and Kamprad's ability to take advantage of bad situations.2. What forces are driving changes in the furniture industry? Originally, the post-war boom contributed to the change in the furniture industry. World War II gutted the lives of many households and many sought new, innovative changes. The tradition of passing down furniture from generation to generation was quickly disappearing in most homes. IKEA helped shape post-war households by offering new styles of furniture at a very reasonable price. Low costs came with a new innovative style and a comfortable atmosphere for shopping.4. What factors do you consider essential to competitive success in the furniture industry? Ingvar Kamprad believes that a company's "identity", guidelines, profile, selection, quantity, quality and price are essential to the success that a company will have in the furniture sector. . Another factor that could contribute to the success of a business in the furniture industry is Internet marketing and sales as well as the company's merchandise catalogs. The range of products must cover the entire surface of the house, indoors and outdoors, with fixed or mobile furniture. furniture. The profile that a company will want to bring will give competitors and buyers a direct image of the company. There must be a wide selection of products as well as the quantity of stock to sell to all customers. Quality and price are also an important factor, but should be left up to the consumer to decide what they want to do in the long term..