IKEA’s business model

In fiscal year 2020, the company generated a global revenue of nearly 40 billion Euros. One of the key competitive advantages IKEA has is its extensive knowledge about the customers. The company understands the purchasing factors which influence customers to buy furniture and implements the best practices to induce that decision. IKEA offers low prices and a huge range of products, constantly introducing new product designs that look stylish in the eyes of customers. All the products are designed so they are easy to transport and assemble. Moreover, the company offers an extremely wide product range and positive shopping experience. All of these factors are aligned with what customers want and need and which results in higher sales. As of 2019, IKEA was the retailer of choice among Americans when shopping for furniture.

IKEA worldwide

In 2020, IKEA was the fourth most valuable retailer in the world, making it the most valuable furniture retail brand, valued at almost 48.1 billion U.S. dollars. The business operates 445 stores around the world and has 50 e-commerce markets. More than 800 million customers visited IKEA stores in 2020. IKEA offers furniture and furnishing products for all areas of the home and also sells outdoor and office products. In addition to its furniture products, the company operates restaurants, houses and flats. Although, the firm’s main business is designing, manufacturing and selling furniture.

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