ikea swot analysis and sustainable business planning

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SWOT analysis and sustainable business planning

IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. Today it is the world’s largest furniture retailer, recognised for its Scandinavian style. The majority of IKEA’s furniture is flat-pack, ready to be assembled by the consumer. This allows a reduction in costs and packaging. IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range is available in all IKEA stores and customers can order much of the range online through IKEA’s website . There are 18 stores in the UK to date, the first of which opened in Warrington in 1987. In July 2009 IKEA opened a store in Dublin too – its first in Ireland.

IKEA stores include restaurants and cafes serving typical Swedish food. They also have small food shops selling Swedish groceries, everything from the famous meatballs to jam. Stores are located worldwide. In August 2008 the IKEA group had 253 stores in 24 countries, with a further 32 stores owned and run by franchisees . It welcomed a total of 565 million visitors to the stores during the year and a further 450 million visits were made to the IKEA website. IKEA sales reached 21.2 billion Euros in 2008 showing an increase of 7%. The biggest sales countries are Germany, the USA, France, the UK and Sweden. In 2008 IKEA opened 21 new stores in 11 countries and expects to open around 20 more in 2009 as part of its strategy for growth.

Low prices are one of the cornerstones of the IKEA concept and help to make customers want to buy from IKEA. This low price strategy is coupled with a wide range of well designed, functional products. IKEA’s products cater for every lifestyle and life stage of its customers, who come from all age groups and types of households. This is vital in times when the retail sector is depressed, as it increases IKEA’s potential market.

Since it was founded IKEA has always had concern for people and the environment . The IKEA vision ‘to create a better everyday life for many people puts this concern at the heart of the business. IKEA has responded to the public’s rising concern for sustainability in its choice of product range, suppliers, stores and communication . It has also spotted business potential in providing sustainable solutions. IKEA’s concern for people and the environment encourages it to make better use of both raw materials and energy. This keeps costs down and helps the company to reach its green targets and have an overall positive impact on the environment.

This case study will show why IKEA believes a strong environmental stance is good business practice.

SWOT analysis

IKEA’s goals of sustainability and environmental design are central to its business strategy. It has launched a new sustainability plan to take the company through to 2015. This will combine social, environmental and economic issues.

IKEA uses SWOT analysis to help it reach its objectives. This is a strategic planning tool. It helps the business to focus on key issues. SWOT is the first stage of planning and looks at the Strengths, Weaknesses, Opportunities and Threats involved in a project or business venture.

Strengths and weaknesses are internal aspects. This means that they are within the control of the business. They may refer to aspects of marketing, finance, manufacturing or organisation. Opportunities and threats are external factors. This means that they are outside the control of the business. These may include the environment, the economic situation, social changes or technological advances, such as the internet.

A business can create opportunities and counter threats by making the most of its strengths and addressing its weaknesses. For example, one of IKEA’s key strengths is its strategic aim to use no more material than necessary in the production of each item. In addition, it develops its product plans to increase its use of waste or recycled materials.

• One particular table, the NORDEN table, uses knotty birch wood. The knots in this wood usually mean it is rejected by other retailers and manufacturers as unsuitable for use. However, IKEA has made the knots part of its design feature.
• OGLA chairs are made using wood waste from sawmills and LACK tables use a ‘sandwich’ of stiff card between wood sheets to reduce the amount of solid wood needed.

Strengths could include a company’s specialist marketing expertise or its location. They are any aspect of the business that adds value to its product or service. IKEA’s strengths include:

• a strong global brand which attracts key consumer groups. It promises the same quality and range worldwide
• its vision ‘to create a better everyday life for many people’
• a strong concept based on offering a wide range of well designed, functional products at low prices
• a ‘democratic design’ reaching an ideal balance between function, quality, design and price. IKEA’s ‘Cost Consciousness’ means that low prices are taken into account when each product is designed from the outset.

These strengths contribute to IKEA being able to attract and retain its customers. One way IKEA measures its strengths is through the use of Key Performance Indicators (KPI). KPIs help IKEA to assess the progress of its vision and long-term goals by setting targets and monitoring progress towards these. An example of one of IKEA’s KPIs is the percentage of suppliers that are currently IWAY approved. The IWAY is the IKEA Way of Purchasing Home Furnishing Products. This guideline defines the social and environmental requirements IKEA expects of its suppliers.

IKEA has strengths right through its production processes:

• Increasing use of renewable materials IKEA improved its overall use from 71% in 2007 to 75% in 2009.
• ‘Smarter’ use of raw materials IKEA increased the use of recycled or reclaimed waste products in energy production across all stores from 84% in 2007 to 90% in 2009.
• Volume commitments IKEA believes in creating long-term partnerships with its suppliers in order to achieve this. By committing to buying large volumes over a number of years IKEA can negotiate lower prices. This also benefits the suppliers because they enjoy the greater security of having guaranteed orders. 
• Economies of scale, for instance, bulk buying at cheaper unit costs.
• Sourcing materials close to the supply chain to reduce transport costs.
• Delivering products directly from the supplier to IKEA stores. This slashes handling costs reduces road miles and lowers the carbon footprint.
• Using new technologies, for example, IKEA’s OGLA chair has been in its range since 1980. The chair has changed through the years to reduce the amount of raw materials needed.

Opportunities

A business uses its strengths to take advantage of the opportunities that arise. IKEA believes that its environmentally focused business conduct will result in good returns even in a price sensitive market. As the company states:

‘There is a true business potential for IKEA in providing solutions that enable customers to live a more sustainable life at home. IKEA is developing effective solutions for customers in order to support them in recycling or reusing used products, aiming at no products ending up at landfill and the recycled materials used in producing new IKEA products.’

Some of the opportunities that IKEA takes advantage of through its sustainability agenda are:

• a growing demand for greener products
• a growing demand for low priced products. Trends in the current financial climate may result in consumers trading down from more expensive stores
• demand for reduced water usage and lower carbon footprints.

IKEA has a number of areas of focus in its work with sustainability, each of which it supports in various ways:

• Solutions for a sustainable life at home IKEA gives online tips and ideas for this.
• Sustainable use of resources. IKEA aims for zero waste to landfill, wastewater treatment and programmes to reduce its use of water.
• Reducing carbon footprint. IKEA aims to reduce energy use, use more renewable energy, cut its use of air transport and reduce packaging. Its green transport initiative includes an aim to reduce business flights by 20% in 2010 and 60% by 2015.
• Developing social responsibility. IKEA’s policy includes support for charities such as the World Wildlife Fund, UNICEF and Save the Children.
• Being open with all its stakeholders . This involves building trust through good communication with consumers, co-workers, key opinion formers and the press. Being sustainable is a central part of IKEA’s image.

Weaknesses and threats

IKEA has to acknowledge its weaknesses in order to improve and manage them. This can play a key role in helping it to set objectives and develop new strategies. IKEA’s weaknesses may include:

• The size and scale of its global business. This could make it hard to control standards and quality. Some countries where IKEA products are made do not implement legislation to control working conditions. This could represent a weak link in IKEA’s supply chain, affecting consumer views of IKEA’s products. The IWAY code is backed up by training and inspectors visiting factories to make sure that suppliers meet their requirements.
• The need for low cost products. This needs to be balanced against producing good quality. IKEA also needs to differentiate itself and its products from competitors. IKEA believes there is no compromise between offering good quality products and low prices.
• IKEA needs to keep good communication with its consumers and other stakeholders about its environmental activities. The scale of the business makes this a difficult task. IKEA produces publications in print and online (for example ‘People and the Environment’) and carries out major TV and radio campaigns to enable the business to communicate with different target audiences.

If a company is aware of possible external threats, it can plan to counteract them. By generating new ideas, IKEA can use a particular strength to defend against threats in the market. Threats to IKEA may stem from:

• Social trends such as the slowdown in first time buyers entering the housing market. This is a core market segment for IKEA products
• market forces more competitors entering the low price household and furnishings markets. IKEA needs to reinforce its unique qualities to compete with these
• economic factors the recession slows down consumer spending and disposable income reduces.

IKEA addresses these issues in many ways. It manages weaknesses and threats to create a positive outcome.

Social trends : IKEA is building online help to guide customers to a more sustainable life. Here it can focus on home improvement in the slowing housing market. It supports customers with tips and ideas on its  website  to reduce their impact on the environment. This will also save them money. Staff are trained on sustainability, both on what IKEA is doing and how they can take responsibility to become sustainable for themselves.

Market forces : IKEA is large enough to enjoy economies of scale. This lowers average costs in the long run through, for example, better use of technology or employing specialized managers. Economies of scale also give a business a competitive edge if cost savings are then passed on to customers in the form of lower prices. This puts up high barriers to entry for smaller companies entering the market.

Economic factors : IKEA’s low prices create appeal amongst its customers in tough financial times. It is vital to keep prices as low as possible when the retail sector is depressed. IKEA’s pricing strategy targets consumers with limited financial resources. Its products will also appeal to those with higher budgets through good quality and design. The company must ensure that it is always recognised as having the lowest prices on the market in the future. Communication plays an important role here.

IKEA is a well-known global brand with hundreds of stores across the world. In order to improve performance, it must assess its external and competitive environment. This will reveal the key opportunities it can take advantage of and the threats it must deal with. IKEA responds to both internal and external issues in a proactive and dynamic manner by using its strengths and reducing its weaknesses. Through this, IKEA is able to generate the strong growth it needs to retain a strong identity in the market.

IKEA’s passion combines design, low prices, economical use of resources, and responsibility for people and the environment. The company’s products, processes and systems all demonstrate its environmental stance. For example, clever use of packaging and design means more items can fit into a crate, which means fewer delivery journeys. This in turn reduces IKEA’s carbon footprint.

IKEA believes that there is no compromise between doing good business and being a good business. It aims to go beyond profitability and reputation. IKEA is intent on becoming a leading example in developing a sustainable business. This will create a better everyday life for its customers. IKEA has discovered a business truth being sustainable and responsible is not just good for customers and the planet, it is also good for business!

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IKEA SWOT Analysis

Before we dive deep into the SWOT analysis, let’s get the business overview of IKEA. IKEA is a multinational company specializing in designing, manufacturing, and selling ready-to-assemble furniture, kitchen appliances, and home accessories. Founded in 1943 by Ingvar Kamprad in Älmhult, Sweden, IKEA has become one of the world’s largest and most successful furniture retailers.

Business Model: IKEA’s business model is centered around providing affordable, functional, and stylish home furnishings to customers across the globe. The company achieves this through its unique combination of low-cost production, efficient supply chain management, and a self-service, warehouse-style shopping experience.

• Low-cost production: IKEA designs its products to be simple and easy to manufacture, which helps to reduce production costs. The company often uses flat packaging, which minimizes shipping and storage costs, and allows customers to assemble the products.
• Efficient supply chain management: IKEA maintains close relationships with its suppliers and works to optimize its supply chain, minimizing costs and ensuring timely delivery of products. This efficiency allows the company to maintain its competitive pricing.
• Self-service concept: IKEA stores are designed to facilitate a self-service shopping experience, with customers navigating through showrooms, picking up products from warehouse-like areas, and assembling the products at home. This approach reduces staffing costs and encourages customer involvement and satisfaction.

Product Range: IKEA offers a wide range of products, including furniture, storage solutions, lighting, textiles, kitchen appliances, and decorative items. The company’s products are designed to cater to a diverse range of customers, with various styles, materials, and price points available.

Global Presence: Since its inception, IKEA has expanded its operations to over 50 countries, operating more than 400 stores worldwide. In addition to its brick-and-mortar locations, IKEA also uses an e-commerce platform, allowing customers to purchase products online and deliver them directly to their homes.

Sustainability and Social Responsibility: IKEA is committed to sustainability and minimizing its impact on the environment. The company invests in renewable energy, focuses on using sustainable materials in its products, and aims to become a circular business by 2030. Additionally, IKEA is involved in various social initiatives and partnerships, such as working with UNICEF and Save the Children to improve the lives of needy children.

In summary, IKEA is a global leader in the home furnishings industry, known for its affordable, functional, and stylish products. The company’s unique business model, wide product range, global presence, and commitment to sustainability and social responsibility have contributed to its success and growth.

IKEA’s  total retail sales  for FY22 reached EUR 44.6 billion (EUR 41.9 billion in FY21). This includes sales of IKEA products, food, and services to customers.

Here is the SWOT analysis for IKEA

A SWOT analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats of a business, project, or individual. It involves identifying the internal and external factors that can affect a venture’s success or failure and analyzing them to develop a strategic plan. In this article, we do a SWOT Analysis of IKEA.

SWOT Analysis: Meaning, Importance, and Examples

• Economies of scale : As one of the largest furniture retailers globally, IKEA benefits from economies of scale, which allow the company to achieve cost advantages in production, procurement, and logistics. This enables IKEA to offer competitive pricing to its customers.
• Strong brand identity : IKEA has cultivated a unique and consistent brand identity. Its minimalistic Scandinavian design, affordable prices, and innovative furniture and home goods approach have made it a household name worldwide.
• Wide product range : IKEA offers a comprehensive range of products, catering to various customer segments, tastes, and budgets. This extensive product offering helps IKEA appeal to a broad audience and meet the diverse needs of its customers.
• Efficient supply chain : IKEA’s efficient supply chain management and close relationships with suppliers enable the company to streamline its operations, reduce costs, and maintain product availability, further enhancing its competitiveness in the market.
• Innovative store layout and customer experience : IKEA’s distinctive store layout, which combines showrooms and warehouse-style shopping, creates a unique and engaging customer experience. This self-service approach encourages customers to explore and interact with products, increasing the likelihood of sales.
• Global presence : With over 400 stores across more than 50 countries, IKEA has established a solid global footprint. This international presence enables the company to cater to local tastes and preferences while benefiting from global brand recognition.
• Commitment to sustainability : IKEA’s focus on sustainability and environmental responsibility has resonated with customers and helped to differentiate the brand from its competitors. The company’s initiatives, such as using sustainable materials and investing in renewable energy, contribute to a positive brand image.
• Digital transformation and e-commerce : IKEA has embraced digital transformation, investing in its online presence and e-commerce platform to cater to consumers’ changing shopping habits. This has allowed the company to expand its reach and maintain its relevance in the age of online shopping.

• Complex assembly process : Although IKEA’s flat-pack, ready-to-assemble products help reduce shipping and storage costs, some customers find the assembly process challenging or time-consuming. This could deter potential customers or lead to dissatisfaction among those who struggle with assembly.
• Perceived product quality : Due to its focus on affordability, some customers may perceive IKEA products as being lower quality than more expensive alternatives. This perception could limit IKEA’s appeal to customers seeking higher-end or longer-lasting furniture.
• Limited customization : IKEA’s standardized designs and production methods can restrict the level of customization available to customers. This might make it difficult for the company to cater to individual tastes and preferences, especially compared to smaller, bespoke furniture manufacturers.
• Dependency on large store formats : IKEA’s traditional reliance on large, out-of-town store locations can lead to higher operational costs and may not be as convenient for customers who prefer shopping in urban centers or online.
• Environmental impact : Despite its commitment to sustainability, IKEA’s business model is not without its environmental impact. The company’s reliance on wood and other raw materials and the transportation of goods can contribute to resource depletion and carbon emissions.
• Cultural adaptation challenges : As IKEA expands into new markets, it may face difficulties adapting its product offerings and store layouts to cater to the local culture, preferences, and regulations. This could affect IKEA’s ability to establish a strong presence in certain regions.
• Market saturation and competition : In some mature markets, IKEA faces increased competition from traditional furniture retailers and e-commerce platforms. This market saturation can lead to slower growth and increased pressure to differentiate its product offerings and customer experience.
• Supply chain disruptions : IKEA’s vast and complex global supply chain can be susceptible to disruptions, such as natural disasters, political instability, or global pandemics. These disruptions can impact product availability, increase costs, and negatively affect the company’s reputation.

Opportunities

• Expansion into emerging markets : IKEA can target untapped markets, particularly in Asia, Africa, and South America, to increase its global presence and tap into the growing demand for affordable and stylish home furnishings.
• Enhancing online presence and e-commerce : By investing in its e-commerce platform and digital marketing efforts, IKEA can cater to the increasing number of customers who prefer shopping online. This will help IKEA broaden its customer base and remain relevant in the digital age.
• Customization and personalization : Offering customers more options to customize and personalize their furniture can help IKEA differentiate itself from competitors and cater to the increasing demand for personalized products.
• Smaller and urban store formats : Opening smaller, urban store formats can help IKEA reach customers in densely populated cities where large store formats are not feasible. These smaller stores can offer a curated selection of products tailored to the needs of urban dwellers.
• Sustainability and circular economy : IKEA can further strengthen its commitment to sustainability by focusing on circular economy initiatives, such as promoting product reuse, repair, and recycling. This can improve IKEA’s brand image and appeal to environmentally-conscious consumers.
• Smart home technology integration : Integrating smart home technology into IKEA’s product offerings can help the company stay ahead of market trends and cater to the growing demand for connected, intelligent home solutions.
• Collaboration with designers and artists : By collaborating with renowned designers and artists, IKEA can introduce exclusive, limited-edition collections that can help differentiate its product offerings, create buzz, and attract new customers.
• Strengthening the supply chain : Investing in supply chain innovations, such as automation and artificial intelligence, can help IKEA further optimize its supply chain, reduce costs, and mitigate risks associated with disruptions.

• Intense competition : IKEA faces strong competition from both traditional brick-and-mortar furniture retailers and e-commerce platforms. Competitors may offer similar products at competitive prices, alternative designs, or superior customer experiences, putting pressure on IKEA to continually innovate and differentiate itself.
• Economic downturns : Economic recessions or downturns can lead to reduced consumer spending on discretionary items like furniture and home accessories. This can result in decreased sales and lower profits for IKEA.
• Fluctuations in raw material prices : IKEA relies heavily on raw materials, such as wood, textiles, and metals, to manufacture its products. Fluctuations in the prices of these materials can lead to increased production costs and potentially affect IKEA’s profitability and competitive pricing.
• Regulatory and political risks : As a global company, IKEA is exposed to various regulatory and political risks in its operating countries. Regulation changes, political instability, or trade restrictions can impact IKEA’s supply chain, operations, or market access, leading to increased costs or reduced sales.
• Changing consumer preferences : Consumer tastes, furniture, and home goods preferences can change rapidly. Failure to adapt to these changes and offer products that resonate with customers can decrease sales and market share.
• Environmental concerns : Growing concerns about the environmental impact of businesses, including resource depletion, carbon emissions, and waste generation, can affect IKEA’s reputation and demand for its products. Failing to address these concerns or meet evolving sustainability standards could harm IKEA’s brand image and customer loyalty.
• Technological disruptions : Rapid technological advancements, particularly in e-commerce, logistics, and manufacturing, can disrupt IKEA’s traditional business model. Failure to adapt and embrace new technologies can hinder IKEA’s competitiveness and market position.
• Supply chain disruptions : IKEA’s complex global supply chain is vulnerable to disruptions from natural disasters, political instability, labor strikes, or global health crises. These disruptions can lead to increased costs, delays, and damage to IKEA’s reputation for product availability.

Check out the SWOT Analysis of Global Businesses

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SWOT Analysis of IKEA 2023

This is IKEA International Group SWOT analysis. For more information on how to do a SWOT analysis please refer to our article.

Company Overview

You can find more information about the business in its official website or Wikipedia’s article .

IKEA SWOT Analysis

• Customer knowledge. One of the key competitive advantages IKEA has is its extensive knowledge about the customers. The company understands the purchasing factors that influence customers to buy and implements the best practices to induce that decision. IKEA offers low prices and a huge range of products. Designers constantly introduce new design products that look stylish in the eyes of customers. All the products are designed so it would be easy to transport and assemble. Moreover, the company offers the widest product range and positive shopping experience. All of these factors are aligned with what customers want and need and which results in higher sales. Without such extensive customer knowledge and best practices to benefit from that knowledge, IKEA would be unable to outcompete its current competitors.
• Constantly using innovations to drive costs down. Low prices are the cornerstone of IKEA business idea and the the company always try to do things as efficient and cost-effective as possible. To drive costs down all the time, the company must find new and innovative ways to do that and to incorporate them in its businesses model. The business’ innovations include new materials that contribute more to sustainable environment and are less costly or using newest ways of packaging, handling and transporting materials.
• Supply chain integration. IKEA is committed to long lasting relationships with its suppliers. In this way, the company can order large volumes and benefit from lower prices and greater quality while suppliers are assured of guaranteed orders. IKEA sources its materials close to suppliers to reduce transporting costs. The company also uses IWAY approach to closely integrate suppliers with its supply chain. All the efforts of closely integrating supply chain results in lower costs and a competitive advantage.
• Brand reputation and market presence. According to Interbrand, IKEA is the most valuable furniture retailer brand in the world, valued at nearly $US 12.8 billion in 2012. The business operates 332 stores in 38 countries and is present in the major world markets. More than 600 million customers visit IKEA stores every year. Worldwide market presence and strong brand reputation ensures that customers will often choose IKEA over its competitors.
• Diversified product portfolio. Unlike IKEA’s largest competitors, the company has fairly diversified businesses. In addition to its furniture products, the company operates restaurants, houses and flats. Although, firm’s main business is designing, manufacturing and selling furniture it is not so affected by the changing forces in this market as other furniture retailers.
• Negative publicity. The company has been criticized many times for issues like poor treatment of employees, questionable advertising practices or lobbying government authorities. Negative publicity decreases brand reputation and customer loyalty.
• Low quality of products and services. IKEA is unable to find compromise between continuous cost reductions while maintaining the same quality of products. According to UK Customer Insights report on IKEA by Verdict, IKEA’s customers are less satisfied with its product and services quality than the average customer in UK buying at other stores. Firm’s cost reductions lead to decreasing product quality, which was followed by higher number of products returned and damaged brand.
• Standard products. IKEA’s main competitive advantage derives from low costs, which in part are achieved due to standardized products. Standardized products attract fewer customer segments. Therefore, the business inability to offer better quality more customized products allows its competitors to fill that niche and fortify their position in it.

Opportunities

• Further expansion into developing economies. Retail markets grew by at least 5% on average in emerging markets in the last year, opening huge opportunities for IKEA’s revenue growth. The company currently operates in most of the developed economies but hasn’t firmly stepped into developing economies, except China. There are great opportunities for IKEA to expand into Brazil, Mexico, Indonesia and Malaysia to increase its presence in these markets to sustain future growth.
• Growing online sales. Online retail sales account for 17% and 4% of total retail sales in UK and US respectively. Online sales grow constantly and with 870 million visitors to its website IKEA could exploit this opportunity and benefit from increased sales and lower costs.
• Expansion to growing grocery market. The current trend of eating healthier food has resulted in higher demand for grocery products in many developed economies. IKEA has an opportunity to expand its grocery business by introducing more grocery stores in its current retail places. The company is already successfully managing its food outlets, so this expansion opportunity would be well aligned with the current operations.
• Intensifying competition. Many low cost retailers such as Walmart, ASDA or Tesco are entering homeware specialists market where IKEA operates. These large retailers have similar specifics as IKEA, including low costs, well managed supply chain and huge market presence and can easily gain some market share from IKEA.
• Growth of average consumer income. Growth of average consumer income means that people buy less low price and low quality products, which is exactly what IKEA offers in its stores. With the rising income people will be less attracted to IKEA and will turn to retailers that offer higher quality homeware products.
• IKEA (2013). About IKEA. Available at: http://www.ikea.com/ms/en_GB/about_ikea/index.html
• The Times 100 (2012). Business Case Studies. Ikea case study. Available at: http://businesscasestudies.co.uk/ikea/swot-analysis-and-sustainable-business-planning/strengths.html#axzz2VB9TPpjz
• Interbrand (2012). Best Global Brands in 2012. Available at: http://www.interbrand.com/en/best-global-brands/2012/Best-Global-Brands-2012.aspx
• Wikipedia (2013). IKEA. Available at: http://en.wikipedia.org/wiki/IKEA
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The IKEA sustainability strategy – making a real difference

The planet is our only home. And our home needs us now more than ever. Inequality risks making it unaffordable. Intolerance risks making it unwelcome. And climate change, uninhabitable. But home has always been what we make of it. And we’re determined to help a billion people live better everyday lives.

Becoming People & Planet Positive

We have big ambitions for 2030. Together with co-workers, customers, and partners the world over, we are tackling climate change, unsustainable consumption, and inequality. Our three major focus areas are:

1. Healthy & sustainable living

Inspiring and enabling more than 1 billion people to live better lives within the limits of the planet.

2. Circular & climate positive

Becoming climate positive and regenerating resources while growing the IKEA business.

3. Fair & equal

Creating a positive social impact for everyone across the IKEA value chain.

Some examples of how we plan on reaching our goals

• Giving IKEA furniture a second life
• Creating a global clean energy community
• Introducing more good food that’s good for the planet
• Aiming to be 100% powered by renewable energy across the entire IKEA value chain
• Offering zero-emission home deliveries, everywhere
• Supporting refugees around the world
• Working with social entrepreneurs
• Promoting gender balance and equal pay

Let’s assemble a better future

Want to know more.

Take a look at People & Planet Positive – the IKEA sustainability strategy.

• People & Planet Positive Open PDF ( 5.01 MB )

Inside IKEA’s Digital Transformation

by Thomas Stackpole

Summary .   

What does it mean for one of the world’s most recognizable retail brands to go digital? For almost 80 years, IKEA has been in the very analogue business of selling its distinct brand of home goods to people. Three years ago, IKEA Retail (Ingka Group) hired Barbara Martin Coppola — a veteran of Google, Samsung, and Texas Instruments — to guide the company through a digital transformation and help it enter the next era of its history. HBR spoke with Martin Coppola about the particular challenge of transformation at a legacy company, how to sustain your culture when you’re changing almost everything, and how her 20 years in the tech industry prepared her for this task.

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