Founded in 1943, Swedish furniture giant IKEA offers functional, designer furniture at

affordable prices. Its success is based on a unique concept: thousands of do-it-yourself furniture
kits, an immersive showroom and a wide range of accessories. IKEA is also committed to
sustainability and innovation for a responsible and barrier-free lifestyle. The objective of our
report is to understand IKEA's strategy by examining various aspects such as: IKEA's
governance, the international business aspects of the company, IKEA's ecosystem, its non-
market strategy, its partners and alliances, the company's ethics, etc. By examining these
different aspects, we will be able to better understand IKEA's strategy and we will gain an in-
depth understanding of Ikea's strategy and its keys to success. Finally, we will explore an
avenue of innovation for Ikea, proposing a new solution in line with current trends and customer
needs.

1- THE GOVERNANCE

Let's take a look at IKEA's governance. If IKEA has been able to develop into the world's
leading furniture and home furnishings company, it is partly thanks to its governance, which
has been able to evolve and adapt to international challenges.
IKEA has a complex private ownership structure, controlled by the Stichting INGKA
foundation. This branch is the main owner of IKEA Group and manages the majority of IKEA
shops.
As a private company, it has the freedom to pursue long-term goals without the obligation to
meet the demands of public shareholders for short-term profits. This form of governance and
financial independence allows IKEA to focus on long-term sustainability and social
responsibility initiatives.
Although IKEA is a fast-growing multinational company, it remains a family business. Indeed,
the Kamprad family has maintained significant control over the company through its
shareholding in the parent company, Ingka Holding. In 2021, for example, the Kamprad family
will hold around 53% of the voting rights in this company. This means that the family retains
significant influence over the company's key strategic decisions.

We can also talk about IKEA's relationship with its stakeholders. The company maintains close
links with its customers, employees, suppliers, NGOs and the local communities in which it
operates. IKEA regularly publishes detailed reports on its activities. For example, published
reports show that the company is committed to reducing its carbon footprint and offering
sustainable products at affordable prices, thereby meeting its customers' expectations while
respecting its environmental commitments. This transparency strengthens stakeholder trust and
demonstrates IKEA's commitment to integrity and accountability.
In terms of external governance mechanisms, IKEA is subject to regular external monitoring
and audits by independent third parties. These audits cover various aspects of the company,
such as working conditions in the supply chain, compliance with environmental standards and
accounting practices. In addition, IKEA adheres to various external standards and accreditations
as part of its corporate governance. For example, the company is committed to respecting the
labour standards of the International Labour Organisation (ILO) and to complying with the
OECD Guidelines for Multinational Companies.
However, as with any big company, IKEA faces governance challenges, such as managing
conflicts of interest and balancing the interests of various stakeholders...

2- The international business

Since opening its first shop in Sweden in 1958, IKEA has expanded rapidly, with more than
445 shops in over 52 countries.
IKEA's international investment objectives are diverse. Firstly, the company is looking to enter
new markets to expand its global presence and drive growth. For example, this desire to
internationalize enabled it to enter the Chinese market in the 1990s, implementing an aggressive
expansion strategy to meet the growing demand for quality products at affordable prices.
Secondly, internationalization allows IKEA to diversify its revenue sources and reduce its
dependence on specific markets, reducing therefore the risks associated with a particular
economy or sector.
The drivers of IKEA's internationalization are multiple and interconnected. In terms of market,
IKEA is attracted by growth opportunities in emerging economies where demand for affordable
furniture solutions is booming, such as in India where IKEA recently opened new shops. In
terms of costs, the company looks for regions that offer competitive advantages in terms of
labor and raw materials. This is why IKEA has established partnerships with local suppliers in
South East Asia to benefit from competitive production costs.
On the other hand, the company is criticized for its practice of relocating production to countries
where labor costs are low, which can have a negative impact on employment and working
conditions in these regions.
The company must also face up to global competition and adapt to new technologies. Today,
technology is an increasingly important part of people's daily lives, all over the world. At the
moment, one of the company's weaknesses is that it is not meeting this growing demand for
high-tech, interconnected furniture, which is causing it to lose market share around the world.
In terms of its choice of international strategy, IKEA has adopted a global strategic approach
while integrating elements of transnational strategy. Indeed, the brand has been able to tailor its
products to meet local needs while preserving its distinct brand identity. For example, although
the Scandinavian aesthetic is a central feature of its products, IKEA has adapted its range and
designs to suit the tastes and cultural preferences of different markets. This strategy has been
particularly effective in China, where IKEA has successfully merged its Nordic identity with
traditional Chinese design elements to create a unique experience for local consumers.
In the process of selecting its target markets, IKEA considers a multitude of factors, including
market size, level of competition, political stability and cultural characteristics. Cultural
management is an essential part of IKEA's international strategy. The company invests in
cultural research to understand local preferences and avoid cultural faux pas. For example,
when launching its first advertising campaign in India, IKEA used local celebrities and familiar
cultural themes to establish an emotional connection with Indian consumers.

3- IKEA and its ecosystem:

IKEA is the undisputed leader in home furnishing, but its influence goes beyond simply selling
furniture. The company creates and maintains a complete business ecosystem, made up of
interdependent players who contribute to the realisation of its value proposition: "accessible,
functional and sustainable homes for all". The IKEA business ecosystem is a complex network
of interactions between the company, its partners and other stakeholders in its environment.
Understanding the challenges of this ecosystem means recognising the interests, needs and
expectations of each stakeholder. For example, customers expect affordable, quality products,
while suppliers are looking for stable business relationships.

By analysing the IKEA ecosystem through the prism of the Business Ecosystem, we can
understand several strategic aspects. To understand this ecosystem it is therefore essential to
identify all the players and their role in the ecosystem.

Firstly, there are the suppliers. To guarantee product availability and quality, it is essential for
IKEA to have strategic partnerships with reliable, long-term suppliers. IKEA's partners are not
just those with whom IKEA has a direct relationship. They contribute to the value proposition,
whether it's supplying raw materials, logistics services or innovative ideas.
Subcontractors and manufacturers are also major players in the ecosystem. Producing IKEA
furniture efficiently and responsibly means working closely with subcontractors and
manufacturers who respect social and environmental standards.
Customers are also at the heart of the IKEA ecosystem. Customers interact with the company
both in physical shops and via the online platform and after-sales services.
What's more, as the home furnishings market is extremely competitive, IKEA must constantly
monitor its many competitors to avoid being overtaken and maintain its position. Competitors
are therefore also part of this large ecosystem.
In addition, IKEA must also take into account institutions and regulators, as the company must
comply with social, environmental and international regulations in order to operate correctly
within the law.

IKEA is very committed to the environment and works with NGOs to promote social inclusion
and sustainable development. IKEA is also committed to the local community for the same
reasons.
Beyond its own business, IKEA must take into account the global environment. This includes
economic trends, regulations, technological innovations and changes in society.

All players in the IKEA ecosystem have interdependent relationships.

Collaboration between these different players allows us to benefit from network effects, such
as an enriched offer. Collaboration with external companies and designers enables IKEA to
offer a more diversified and innovative range of products. In addition, partnerships with
suppliers ensure a sustainable and reliable supply of raw materials. In addition, working with
stakeholders committed to sustainability allows IKEA to improve its environmental and social
footprint.
In conclusion, the IKEA ecosystem works thanks to the alignment and coherence between all
the players. They all share a common vision and work together effectively to create and deliver
value to the end customer, but also to create an environment conducive to success. By taking
into account the strategic challenges of its ecosystem, IKEA can ensure the sustainability of its
business model.

4- Non market strategies

IKEA does not stop at the market sphere alone; the company also deploys a non-market strategy
to influence its environment and maximize its overall performance. This strategy aims to
integrate actions taken in the market with actions taken with non-market players in order to
derive maximum benefit. Generally speaking, non-market strategy represents all the actions
and strategic decisions taken by a company to manage its external non-market environment.

Let's focus on Ikea now, as this strategy plays an essential role in its overall success.
To begin with, it's important to remember the players in IKEA's non-market environment.
Firstly, there are the direct and indirect competitors in the furniture sector, such as But
Castorama and Leroy Merlin. Then there are the interest groups, which can be consumer,
environmental or workers' rights associations that can influence IKEA's activity. Government
and public institutions are also key players, as all regulations, tax principles and trade have a
direct impact on IKEA. Finally, the media is also an actor in the non-market environment
because a large part of IKEA's image is shaped by the media coverage it receives.

Once the non-market players have been identified, it is important to understand the objectives
of IKEA's non-market strategy. Firstly, this strategy aims to influence regulations. For example,
IKEA can advocate the adoption of stricter sustainability stand ards in furniture manufacturing,
which would give the company an advantage over less committed competitors. IKEA's non-
market strategy also aims to anticipate future challenges. Ikea does this by working with public
institutions to provide innovative solutions for the circular economy and furniture recycling.
Another objective is to manage IKEA's image while protecting itself from criticism. To do this,
IKEA can develop CSR programmes to address the public's environmental and social concerns.
In addition, it can slow down or even neutralise the competition. Ikea can oppose regulations
that would encourage new players to enter the market, thereby protecting its dominant position.
Finally, non-market strategy allows Ikea to create business opportunities by, for example,
supporting regional planning policies that facilitate the location of its shops and customer
access.

To carry out its non-market strategy, IKEA constantly analyses its environment, taking four
key factors into account.
Firstly, "Issues", to find out about current issues that may affect the company's business. These
could be sustainability issues or working conditions, for example. Next, we need to look at the
"Interests", i.e. the interests of the various stakeholders in the environment. For example,
consumers are interested in affordable, sustainable products. In addition, we need to look at the
"Institutions" to find out which ones influence IKEA's activities, which could be the European
Union or national governments. Finally, IKEA must look at "Information" to know how to
communicate messages to non-market players. This may involve public relations or lobbying.

Finally, we will look at the challenges of this strategy. Firstly, IKEA must ensure that its actions
with non-market players are transparent and ethical. Furthermore, IKEA's interests can
sometimes conflict with the public interest. The company must find the right balance between
the two. Finally
issues and regulations can vary from one country to another, which makes IKEA's international
non-market strategy more complex.

In conclusion, non-market strategy is a key element in IKEA's success. By understanding the

challenges of its environment and forging strong links with non-market players, IKEA can
create a favourable context for its sustainable development.

5- Partnership and alliances

To continue to grow and increase its sales, Ikea must adapt its strategy to differentiate itself
from its competitors. To do this, the company must establish numerous partnerships, alliances
and co-operations.

Ikea's partnership strategy is to partner with other brands to create innovative new products by
combining the expertise of the 2 brands, enabling them to create unique products without having
to invest too heavily in research and development. For example, they partnered with Sonos, a
company with the audio expertise to create "Symfonisk" speaker cabinets. Thanks to this
partnership, they were able to create a unique product with very low R&D costs. The products
are sold for around €200, which is affordable and fits in with the company's pricing strategy.
This underlines Ikea's strategy of constant innovation and adaptation to rapidly changing
consumer needs.

To continue innovating, Ikea had to collaborate with indirect competitors to create innovative
new products. Ikea established an alliance called the connectivity standard alliance, with which
they created Matter in collaboration with Google, Amazon and Meta.
This system uses a box to control a large part of the home automation system, from wifi to
shutters and lighting, all via Amazon's Alexa or even Google Home. The aim of this system is
to facilitate and enhance the user's experience, which is beneficial for all brands, given that the
customer is satisfied and buys all their products, which have thus become complementary. It's
a win-win situation for Ikea, which benefits not only from the reputation of these brands and
their know-how and skills, but also for the customer, who benefits from a simpler solution for
interconnecting his or her appliances.

Ikea has also built alliances with organizations committed to recycling, such as the World
Wildlife Fund, with whom the company works to protect the environment but also to improve
its environmental impact and sourcing.

Thanks to this alliance, Ikea is not only improving its environmental impact, but also its
"green" image, which is particularly appealing to customers.
Partnerships and coopetition are therefore an important part of Ikea's strategy, setting it apart
from its competitors who do not make alliances like But. However, Ikea can continue to develop
and innovate in partnerships to reinforce its leadership position.

One of our recommendations would be to set up partnerships with artificial intelligence

systems, which are increasingly present in our daily lives. Partnerships could be made with
start-ups, as these are the companies with the most knowledge in this field. The customer could,
for example, have access to room design suggestions, as well as new furniture to buy, using
virtual reality and artificial intelligence. This aspect will be developed in Marine's personal
analysis.

6- Ethics and strategy :

Ikea's ethical strategy is based on a number of key pillars that enable us to adapt to the
environment and to the evolution of society on a daily basis.

Firstly, in terms of respect for the environment and Ikea's commitment to sustainability, the
company is committed to reducing its carbon footprint and using a circular economy. To this
end, a large proportion of their products are made from recycled materials, which is emphasized
on product sheets in particular. Ikea also greatly reduces its waste, and most of its cardboard is
recyclable, which is always indicated to encourage consumers to do so.

Their strategy in this area is very well established for 2030, in fact one of their main objectives
is to become climate positive, which means they want to reduce more greenhouse gasses than
they produce.

Ikea also attaches great importance to the provenance of its materials. Indeed, for them, it's
essential that their raw materials are eco-responsible, i.e. guaranteeing both that they are
produced sustainably by protecting the ecosystem and ethically by respecting working
conditions. For example, 99.5% of the wood they use to manufacture their furniture is certified
by the Forest Stewardship Council, which ensures respect for forests, or is recycled.

For the company, another major point in its strategy is respect, well-being at work and the
diversity of its employees. Indeed, diversity is a very important point, enabling the company to
welcome people with disabilities in particular. It also promotes equal opportunities, but above
all it guarantees respectful working conditions, which is very important both for recruiting new
employees who are aware of the quality of their work, and for retaining current employees who
produce better work in good conditions.

Ikea is also involved in educational projects and programs to increase access to renewable
energy in developing countries.

Respect for the environment and ethics is very important to Ikea, and it's also very important to
its customers. They therefore put a lot of emphasis on this fact to make customers realize and
feel involved, for example by selling energy-efficient products and, as we saw earlier, by
promoting the recycling of their products and packaging.

These elements are highlighted on their website to emphasize their green, people-friendly
strategy. In this way, they reach out to a growing target audience whose primary concerns are
the environment and respect for human rights.

To reach this target even more and continue to raise customer awareness, it could be
strategically interesting to highlight the journey of products, furniture and their manufacture, of
all the stages before arriving in stores so that they can realize. This would involve customers
emotionally and increase their knowledge not only of the product, but also of IKEA's
commitment to sustainable development, thus continuing to improve its image.
Strategy As Practice (SAP)

International Expansion: Adaptability as the Key to Growth

Internationalization remains a major priority for IKEA, which has demonstrated its ability to
adjust successfully to the particularities of each market. This adaptability is crucial to
maintaining the brand's competitiveness in regions with widely varying consumer expectations.
For example, when IKEA entered Asian markets such as China and India, it had to adapt its
product range and marketing strategies to meet local needs and preferences.

A concrete example of this flexibility is the size of IKEA stores in Asian markets. By opting
for more compact stores and offering a more targeted range of products, IKEA has succeeded
in attracting consumers while reducing operating costs. This strategy has enabled IKEA to
establish itself effectively in competitive markets where consumer habits differ from those in
Western markets.

In addition, IKEA has adopted a multi-channel approach to its international expansion,

combining physical stores and online platforms to reach as many consumers as possible. This
flexible approach enables IKEA to adapt to the buying preferences of each market, while
offering a consistent experience to its customers around the world. In short, adaptability is the
foundation of IKEA's international expansion strategy, enabling it to grow and prosper in
diverse and demanding markets.

Competitive Pricing: Accessibility and Quality at Affordable Prices

IKEA's competitive pricing policy remains an essential pillar of its worldwide success, enabling
it to offer quality products at affordable prices. By aligning its prices with those of its
competitors while maintaining superior quality, IKEA succeeds in attracting a wide range of
customers from different social and economic strata. This strategy is illustrated by its entry-
level furniture range, including collections such as MALM and BILLY. These products offer a
combination of functionality and aesthetics at competitive prices, enabling many consumers to
afford quality furniture within their budget.

What's more, IKEA regularly rolls out attractive promotions and special offers to consolidate
its position as a brand offering excellent value for money. Seasonal sales, temporary discounts
and promotional offers encourage consumers to turn to the brand's products. This competitive
pricing policy remains essential to guarantee the accessibility of IKEA products and maintain
its competitiveness in a market where consumer expectations of value for money are constantly
evolving.

Sustainability: Environmental Integration and Social Responsibility

IKEA continues to demonstrate its commitment to sustainability through its ecological
initiatives and responsible business practices. The brand favors the use of sustainable materials,
such as FSC-certified wood, and promotes recycling by incorporating recycled materials into
the manufacture of its products. IKEA France has even achieved an impressive level of energy
coverage, producing 152% of its consumption via renewable energies, with a target of
delivering 100% zero-emission solutions by 2025. A concrete example of this philosophy is
illustrated by the "Mandal" bed, offering durability and ease of repair with its 4 storage drawers,
all made from solid, recyclable wood.
But IKEA doesn't just reduce its carbon footprint; the company also seeks to inspire its
customers to adopt a more sustainable lifestyle, through eco-designed products and awareness-
raising initiatives. This sustainability strategy helps to reinforce IKEA's brand image as an
environmentally responsible company, meeting the expectations of an increasingly
environmentally conscious customer base.

By combining these different strategies, IKEA has succeeded in building customer loyalty, with
over a billion visits a year to its stores and website. In France, the IKEA website recorded over
56 million visits in 2022, generating sales more than 3 billion euros.

Business Model/Value Creation

Products: Innovation and Accessible Functionality

IKEA's business model is based on offering innovative, functional products that are accessible
to all. The brand has transformed interior design by offering clever, aesthetic solutions for
everyday living. To celebrate its 80th anniversary, IKEA launched the Nytillverkad collection,
representing a major strategic innovation in its business model. This range of furniture, bedding
and accessories boldly reinvents classics while preserving IKEA's iconic design. Pieces such as
the brightly hued LÖVBACKEN table and the KRYPKORNELL pattern subtly blend retro and
contemporary, demonstrating IKEA's ability to innovate while remaining true to its heritage.
This collection brings a touch of personality and charm to many modern interiors, testifying to
the continuing evolution of the IKEA business model.

IKEA's ability to innovate, by collaborating with renowned designers, enables it to stand out in
the market by offering products that are both contemporary and affordable. The exclusive
collections resulting from these collaborations broaden the brand's appeal to a variety of
audiences in search of quality design at reasonable prices. In this way, IKEA demonstrates its
ability to create value by making innovative design accessible to a wide range of consumers,
consolidating its position as a leader in the home furnishings and interior design sector.

Sourcing: Transparency and Environmental Responsibility

IKEA's approach to sustainable sourcing is based on a firm commitment to positive impact on
individuals, society and the environment. Balancing economic growth and beneficial social
impact with environmental protection and regeneration is at the heart of their philosophy. That's
why IKEA places great importance on responsible production and sourcing of raw materials as
key elements of their commitment to sustainable development.

This social, ethical and environmental responsibility is reflected throughout their value chain,
through close collaboration with their partners. Together, they aim to create long-term positive
change by tackling the root causes of environmental and social challenges. IKEA's aim is to
mainstream responsible sourcing into all its operations, integrating sustainable and ethical
farming practices.

IKEA's responsible sourcing framework for raw materials also demonstrates their commitment
to sustainability. This framework aims to ensure agricultural production while preserving soil
health, improving soil organic carbon content, preventing land erosion and promoting
environmentally beneficial grazing practices.

In addition, IKEA is working to improve animal welfare and promote more sustainable animal
agriculture through initiatives such as IKEA Food Better. The aim is to ensure full compliance
of their egg, chicken, pork, beef, salmon and dairy supplies by 2025. These programs,
developed in close collaboration with suppliers, NGOs and agricultural consultants, underline
their determined commitment to farming practices that respect the environment and animal
welfare.

Distribution: Accessibility and Customer Experience

IKEA's retail strategy is based on a dual approach to enhancing the customer experience,
combining physical and digital accessibility. Stores are designed as places of inspiration,
offering visitors an immersive and stimulating experience. Inspired by the latest trends in
interior design, these spaces are designed to stimulate creativity and facilitate product
discovery. At the same time, IKEA's online platform offers total accessibility to the brand's
products, enabling customers to browse and buy easily from home.

This combination of enriching in-store experience and ease of online shopping gives customers
the opportunity to choose the channel that suits them best, while benefiting from consistency in
the IKEA experience. IKEA's inspirational and lifestyle-focused communication also
strengthens the emotional bond with the brand and fosters consumer loyalty. By highlighting
living environments and decorating ideas, IKEA creates a universe around its products, inviting
customers to identify with and appropriate their own style. The IKEA Family program is
another important lever in this strategy, offering exclusive benefits and special promotions to
members, reinforcing customer commitment and loyalty.

Thanks to this holistic approach to distribution, IKEA is able to solidify its relationship with its
customers, offering a consistent and engaging experience across its different sales channels.

Innovation management

When it comes to innovation management, Ikea is very convincing. In fact, the Swedish group
follows a strategy of constant innovation that enables it to constantly increase the quality of its
products while reducing the price. Let's take a look at some of the areas that demonstrate Ikea's
innovation management.

A- On its Product and Service Innovation:

IKEA stands out for its constant innovation in the design of furniture and decoration products,
which is a blend of durability, aesthetics and functionality, all at a price that makes the brand
very attractive. With regard to its innovative aspect, the brand renews itself and surprises its
customers very often, one example being the launch of the TRÅDFRI range, which offers smart
connected lighting allowing users to control lighting via the IKEA Home Smart app. This need
to offer ever more innovative products and services clearly demonstrates Ikea's strategy to meet
the needs of customers who are looking for products that are always technological and useful,
yet affordable for everyone.

Another product innovation is the "wedge dowel" principle, which was an important 2017
innovation because it was close to the hearts of the brand's founders. This principle of being
able to assemble a piece of furniture without tools or screws is totally revolutionary and goes
to show how perseverance, experimentation and collaboration in innovation at IKEA is the very
essence of what the group is all about.

B- Innovation also in its operating process:

Ikea is also about internal innovation in its operational processes. In fact, with the launch of
IWAY, the Group is making us understand just how important the environment and social
responsibility are to them. Iway, which is a sort of code of conduct for the brand's suppliers,
has transformed and improved the operational side of the business, by innovating the way their
supply chain and production methods are organized. The program includes environmental
standards, in which Ikea encourages its suppliers to reduce their environmental impact, as well
as very strict rules on workers' rights, ethical issues and other elements that enable IKEA to
have an innovative, high-performance operational process that is in line with ikea's DNA and
with what the group seeks to convey worldwide.

10- Digital strategy

Ikea is a strong group, thanks in particular to its management and investment in digital. Whether
it's the innovative, high-performance customer experience they aim to deliver to their
customers, the digitalization of their services in their numerous applications or the ongoing
development of their e-commerce platform. Let's take a closer look at their digital strategy, one
of the group's great strengths.

A- Data collection :

Ikea is very good at collecting user data, because it is on the basis of the customer data it collects
that it can afford to offer customers an optimal experience by improving their online experience.
Take, for example, their online platform, which, fed by customer data, makes targeted
recommendations thanks to their learning algorithms. Naturally, this data collection is
processed in compliance with RGPD regulations.

B- Digital application :

Ikea is also mobilizing its digital advances in its applications. With the Ikea application, you
can scan and pay for items directly in the store at a dedicated checkout, without having to take
out all your items.

We can also count on the Ikea Kreativ application, which uses augmented reality to integrate
Ikea furniture and other decorative elements into our living space, so that we can see before we
buy. A fine technical feat that links the digital with the pleasant, and enables Ikea to meet their
customers' needs in terms of digital and innovative, useful technology.

C- CAAR : Customer as a resource :

IKEA uses both its customers' data and its customers themselves. Indeed, the group has
understood that its customers can be used to develop common interests with them.
By developing participatory design programs, ikea can count on their loyal customers, be they
design school students or independent designers who love the brand and want to contribute their
ideas.
Since then, Ikea has extended this collaborative system to other areas such as advertising, where
anyone can suggest advertising opportunities to Ikea or even become a material supplier. Here
too, the customer is seen and used as a resource for Ikea.

In another aspect, the group also offers its customers the opportunity to take back their furniture
in exchange for a voucher. This furniture is then recycled and used to create new furniture. The
customer is an active player in this field, helping ikea to develop a circular economy strategy,
which is one of their most important objectives in so many ways. In fact, the group has set itself
the target of completing its transition from a linear to a circular company by 2030.

To conclude on this subject, IKEA has put a lot of emphasis on digital, both in the collection
and processing of customer data for a better customer experience, and in the development of
high-performance, user-friendly digital applications. With a view to further developing their
circular economy, Ikea has not thought of all the possible strategies, in fact the setting up of a
marketplace managed by Ikea and available to private individuals could mark a turning point
for the group, and we'll be talking about this idea of launching this strategy in one of our
personal reports.

11- In conclusion

To conclude on this in-depth study, Ikea is a success story for many reasons: it has a unique
style in its way of being and in its global reach and expansion. It's a great story of a company
founded on a family history of innovation, durability and design at affordable prices, a leader
in its industry, and a long-term vision that is encouraging in terms of ecology and sustainable
development. Their actions are concrete, have an impact and will have an impact in the future.
Finally, Ikea is much more than a furniture store with a worldwide presence. Ikea is a way of
being, and its actions influence many consumers and others who advocate and promote the
same values as this fine Danish company.
Innovation Proposal :
Known for its unique position in the global furniture market, IKEA faces a number of challenges
in a constantly evolving sector.

Among today's hot topics, the growing demand for sustainability, shrinking living space and
rapidly changing consumer lifestyles stand out as key themes. The need to innovate to meet
these challenges is not only a competitive issue, but also a strategic necessity for the long-term
development of companies.

In a world where environmental awareness and the need to protect the environment are
increasingly determining consumer choices, IKEA is faced with the challenge of reconciling
the needs of sustainable development with an economic model based on accessibility and mass
production. The waste generated by the rapid obsolescence of furniture and the environmental
impact of production and logistics are forcing companies to rethink their practices.

At the same time, we're seeing a trend towards smaller living spaces, particularly in densely
populated urban areas, which raises questions about the multi-functionality and modularity of
furniture.

The ability to adapt to changing consumer circumstances, such as relocation, changes in family
structure or simply changing personal preferences, has become a key market expectation.

Given these challenges, IKEA needs to rethink its products to remain at the forefront of the
furniture industry. In this context, 3-in-1 modular furniture projects have emerged as a
potentially transformative solution. This innovative concept not only meets the flexible
demands of the market, but also reflects a growing environmental awareness. Indeed, thanks to
this project, IKEA has had the opportunity to answer important questions such as: How can we
reduce our environmental footprint while continuing to offer accessible and functional
products? How can we increase the adaptability and longevity of our furniture in ever-smaller
spaces? How can we build customer loyalty in a competitive market?

Innovation in 3-in-1 modular furniture projects could be the key to meeting these challenges.
The project is therefore positioned not only as a product differentiation strategy, but also as a
potential vector for IKEA's sustainable growth, in line with the ethical and environmental
principles that guide consumer decision-making.

The 3-in-1 modular furniture project represents a strategic step forward for IKEA. This
innovation consists in creating furniture that can be transformed into three different
configurations, responding to the growing demand for flexibility and adaptability within the
same context. Living spaces are shrinking and consumer needs are changing rapidly. This
innovative approach allows customers to buy one piece of furniture and convert it into three
different configurations. Consumers looking for flexible, adaptable solutions to their changing
needs are likely to be attracted by this innovation.

Market analysis
Understanding the relevance of this project requires a detailed market analysis. The furniture
industry is characterized by fluctuating trends, influenced by economic cycles, demographic
changes and technological advances. The most informed and demanding consumers are keen
to invest in furniture that reflects their values, particularly in terms of sustainability.

As more and more people live in smaller spaces, the demand for multi-functional, expandable
furniture is growing. Competition is also intensifying due to the emergence of new companies
focused on innovation and ecology, putting pressure on IKEA to maintain its competitive edge.

To stay one step ahead, IKEA needs to take into account not only its strengths, such as logistical
efficiency and large-scale production capacity, but also new threats, such as consumers' new
preferences for buying local and artisanal products.

The 3-in-1 modular furniture project fits into this context, offering a solution that meets the
principles of sustainability and the expectations of flexible design. By implementing this
concept, IKEA aims to position itself as an innovator capable not only of meeting current needs,
but also of anticipating future trends and meeting future environmental and social challenges.
This requires an in-depth understanding of market dynamics, including consumer preferences,
buying behavior patterns and customer segmentation.

Such analysis helps IKEA to target its marketing campaigns more effectively and optimize its
supply chain accordingly.

I. The 3-in-1 modular furniture project: an innovative solution for IKEA

A. Introducing the 3-in-1 modular furniture concept

IKEA's 3-in-1 modular furniture project is a revolution in home furnishings. This innovation is
based on the creation of versatile furniture that allows up to three different configurations,
offering unrivalled adaptability to your living space. These transformations are not limited to
small adjustments, but extend to major changes that alter the very functionality of the furniture.
For example, a sofa can become an occasional bed and then be divided into separate seats with
a coffee table. This concept cleverly responds to the challenges of increasing urbanization and
shrinking living space, enabling users to make the most of every square meter of their home.

B. Analysis of the project's relevance to market needs and IKEA's challenges

Looking at today's furniture market, we see a clear trend towards customization and
functionality. Modern consumers want products that not only complement their spaces, but can
evolve with their changing needs. With this innovative project, IKEA is responding perfectly to
these market expectations. This goes beyond aesthetics, as modularity is about everyday
usability for consumers. What's more, by meeting these needs with such flexible solutions,
IKEA is appealing to a wider audience, including young city dwellers and developing families,
and reinforcing its position as an innovative leader in the furniture industry.
C. Environmental and economic benefits for IKEA and its customers

There is growing concern about the environmental impact of furniture production and
consumption. With its 3-in-1 modular furniture initiative, IKEA is taking an environmentally
friendly approach by reducing the amount of furniture wasted and extending the life of each
product. Using renewable or recyclable materials, optimizing manufacturing processes to
minimize waste and promoting sustainable consumption habits among our customers are all
part of our eco-friendly vision.

From an economic point of view, modular furniture is a source of savings for customers who
don't have to completely replace their furniture to meet new needs. Adapting existing furniture
configurations reduces costs and increases flexibility at the same time. For IKEA, this means
not only strengthening customer loyalty through sustained efforts, but also reducing production
and logistics costs by standardizing components. It's a win-win strategy that aligns with
corporate social responsibility and customer values.

II. Implementation and growth prospects

A. Implementation strategy for IKEA's 3-in-1 modular furniture project

The implementation of the 3-in-1 modular furniture project at IKEA will be based on a strategic
investment in research and development. This approach aims to create innovative designs that
combine aesthetics and functionality, responding to different lifestyles and spatial
configurations. To ensure successful implementation, IKEA must not only focus its efforts on
product innovation, but also implement a targeted and relevant marketing campaign. The
campaign will aim to raise awareness of the unique benefits of modular furniture, such as
adaptability, durability and added value in tight spaces. Collaborations with famous designers
and influencers can be leveraged to increase a product's visibility and appeal. By choosing these
personalities as brand ambassadors, IKEA can leverage their credibility and reach a wider, more
diverse audience.

B. Growth potential and differentiation in the furniture market

The modular furniture segment offers exceptional growth potential for IKEA, as consumer
demand shifts towards multifunctional, environmentally-friendly interior environments. The
uniqueness of the 3-in-1 modular furniture project has placed IKEA at the forefront of
innovation in the furniture sector, enabling the company to clearly differentiate itself from its
competitors. This distinction has been important in establishing IKEA's reputation as a leader
in innovation, capable of redefining market standards. In addition, this project offers the
opportunity to target a customer base that is conscious of its ecological impact and actively
seeks intelligent, flexible interior design solutions. By focusing on these specific needs, IKEA
can not only expand its customer base, but also create a new space in the market where the
company can grow and develop.

C. Reflection on long-term prospects and the project's impact on customer loyalty

3-in-1 modular furniture designed to accompany IKEA customers over the long term, adapting
to the evolution of living spaces and their needs. The intrinsic durability of a product is a great
asset for customer loyalty. By focusing on furniture that can evolve over time, IKEA not only
responds to immediate needs, but also lasts in customers' lives. This approach, focused on
listening and responding to customer needs, has the direct consequence of strengthening
relationships of trust and commitment with the brand. What's more, by positioning its modular
products as evolutionary investments, IKEA not only encourages customers to return to
purchase add-on modules or upgrades, but also to become brand ambassadors to those around
them, contributing to a cycle of growth and loyalty.

III. Conclusion

A. Summary of the main points made in the analysis

In summary, our analysis shows that, faced with the modern demands of the furniture market,
IKEA must constantly innovate to maintain its leading position. The 3 in 1 modular furniture
project demonstrates this innovation by responding effectively to today's challenges: that of
offering furniture that adapts to ever smaller spaces, to lifestyles that are developing and to
consumers' growing awareness of ecology. This product range, through its transformation and
use of sustainable materials, not only meets the need for versatility and durability, but is also
part of a more environmentally friendly approach, driven by the significant reduction in the
ecological footprint of IKEA products.

B. Stresses the importance of the 3 in 1 modular furniture project for IKEA and its market
position

The 3 in 1 Modular Furniture project is proving to be a strategic pillar for IKEA, underlining
the company's commitment to innovation and sustainability. By bringing this convertible
furniture to market, IKEA is not only setting itself apart with its products, but also setting new
standards in the furniture industry. This allows the Swedish brand to consolidate its reputation
as an innovator while broadening its appeal to customers who are more concerned about the
environmental impact of their purchases. Adopting this range of modular products can make a
significant contribution to a company's sustainable footprint, while building customer loyalty
through incentives that are always tailored to their aspirations and lifestyle constraints.

C. Future prospects and recommendations for the further development of the project

To maintain the success of the 3-in-1 modular furniture project, IKEA must continue its research
and development efforts. This will allow us to remain at the forefront of innovation, improve
existing solutions and explore new horizons in modular design. A dynamic and insightful
marketing strategy is also essential to continue to inform the market about the many benefits of
modular furniture and increase their visibility. IKEA must remain true to the values of
simplicity, functionality and environmental awareness that form the basis of a trusting
relationship with our customers. In a future where innovation and sustainability are even more
important, IKEA has the ability to lead change, drive sustainable growth and strengthen
customer relationships through projects such as 3-in-1 modular furniture.