Region_ % Purchasing

Region % Sales

Europe 82%

North America 15%

Asia 3%

Source: Compiled from IKEA Web site: <www.ikea- usa.com>. FY 2003: September 2002 to August 2003.

Exhibit 3 IKEA Group: Top Five Sales Countries (FY 2003)

Region % Sales

Germany 20%

United Kingdom 12%

United States 11%

France 9%

Sweden 8%

Source: Compiled from IKEA Web site: <www.ikea- usa.com>. FY 2003: September 2002 to August 2003.

Exhibit 4 IKEA Group: Store Locations (as of August 31, 2002)

Exhibit 5 IKEA Group: Purchasing by Region (FY 2003)

Region_ % Purchasing

Europe 66%

North America 3%

Asia 31%

Source: Compiled from IKEA Web site: <www.ikea-usa.com>. FY 2003: September 2002 to August 2003.

Exhibit 6 IKEA Group: Top Five Purchasing Countries (FY 2003)

Region_ % Purchasing

China 18%

Poland 12%

Sweden 9%

Italy 7%

Germany 6%

Source: Compiled from IKEA Web site: <www.ikea-usa.com>. FY 2003: September 2002 to August 2003.

Exhibit 8 Leading U.S. Furniture Retailers (ranked by 2002 sales of furniture and bedding)

Rank Name

1 Wal-Mart

2 Rooms To Go

3 Ethan Allen

4 Levitz

5 La-Z-Boy

6 Office Depot

7 Sam's Club

8 Federated Department Stores

9 Berkshire Hathaway (incl. Jordan's)

10 Costco

11 Staples

12 Havertys

13 Value City

14 IKEA

15 Pier 1 Imports

16 JC Penney

17 Kmart

18 May Department Stores 1 9 Art Van

20 Rhodes

21 Office Max

22 Thomasville Home Furnishings

23 Lowe's

24 Big Lots

25 W.S. Badcock

Source: Adapted from Amrit Tewary, "Household Durables," Standard & Poor's Industry Surveys, November 6, 2003.

Professor Youngme Moon prepared this case. This case was developed from published sources. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management.

Copyright © 2004 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School.

^[2] In 2002, InterBrand, a marketing research firm, ranked IKEA 44^th on its list of the world's most valuable brands, ahead of Apple, Pepsi, MTV, Harley-Davidson, and Xerox. See "The 100 Best Global Brands by Value," <www.interbrand.com>.

^[3] Quote from Lisa Margonelli, "How IKEA Designs Its Sexy Price Tags," Business 2.0, October 2002.

^[4] IKEA owned some of its suppliers, but even these company-owned suppliers had to compete against independent contractors for IKEA's business.

^[5] Quote from Lisa Margonelli, "How IKEA Designs Its Sexy Price Tags," Business 2.0, October 2002.

^[6] Alexander von Vegesack, director of the Vitra Design Museum in Germany, who in 1999 mounted an exhibit on the history of IKEA, quoted in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

^[7] Quoted in Christopher Brown-Humes, "An Empire Built On a Flat-Pack," FT.com (London), November 23, 2003, p. 1.

^[8] Based on data gathered by the American Furniture Manufacturers Association (AFMA), an industry trade group, as described in Amrit Tewary, "Household Durables," Standard & Poor's Industry Surveys, November 6, 2003.

^[9] Christian Mathieu, external-marketing manager for Ikea North America, quoted in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

^[10] Ken Nordin, previously IKEA's sales and marketing manager for North America, quoted in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

^[11] Josephine Rydberg-Dumont, managing director of IKEA of Sweden, quoted in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

^[12] Based on IKEA's internal market research, described in John Leland, "How the Disposable Sofa Conquered America," The New York Times, December 1, 2002.

^[13] IKEA Web site: < www.ikea-usa.com>.

^[14] IKEA Web site: <www.ikea-usa.com>.

^[15] IKEA Web site: <www.ikea-usa.com>.

^[16] Amrit Tewary, "Household Durables," Standard & Poor's Industry Surveys, November 6, 2003.

^[17] Howard Davidowitz of Davidowitz & Associates, a retail consulting firm, quoted in Lisa Margonelli, "How IKEA Designs Its Sexy Price Tags," Business 2.0, October 2002.

^[18] Anders Dahlvig, president of the IKEA Group, quoted in Christopher Brown-Humes, "An Empire Built On a Flat-Pack," FT.com (London), November 23, 2003, p. 1.

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