IKEA enters Spain

This short case provides an update of the Catalan furniture industry, describing the entry and success of IKEA and the closure of half of the Catalan furniture companies. It addresses the question of why the Catalan companies did not follow IKEA’s model and stresses the different configuration of the value chain.

Publication Date: 4/11/2013
Language: English
Pages: 4

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Overview
Product Details

This short case explains the entrance of IKEA in Spain and provides a brief description of the company’s strategy. It then explains the situation of the Catalan furniture industry, which was experiencing layoffs and was generally in trouble. Finally, the case addresses some of the key reasons why IKEA was continuously rising.

The teaching objectives are to:

illustrate the complexities involved in international competition
help students address the trade-offs that going global or staying local can have for a company
illustrate the importance of understanding the location of each stage of your value chain and taking advantage of it

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