Chapter 2 - Case Study Ikea Reshapes Its Strategy with the Help of Digital Technologies

Question 1

How many stores does Ikea have, how many countries, and how many in Canada?

Answer 1

422 stores, 30 countries, with 14 in Canada.

Question 2

Describe the issues that Ikea had been facing.

Answer 2

Ikea is the worlds largest furniture retailer, but has been facing financial troubles due to the sharp increase in costs of materials and transportation due to the war in Ukraine. Thus they have been looking to digital technologies to be successful.

Question 3

What did the Ikea executive say about digital technology?

Answer 3

in order to be successful, digital needs to be embedded in every aspect of Ikea. Digital is a way of working, making decisions, and managing a company.

Question 4

What are the four digital tools that Ikea used to improve their service?

Answer 4

1) New and improved navigation search function
2) Online furniture planning tools, which allows customers to decorate their kitchen, living room, or bedroom with an application on their website.
3) Shop and go feature allowing customers to scan and pay for their items using their phone.
4) Kreative Screen Scanner app, which is a mobile virtual reality app to help customers visualize a 3D model of their home and replace their furniture with Ikea products.

Question 5

What does the IKEA virtualization app require?

Answer 5

1) Enter measurements of their room
2) Answer questions about their taste and life situation
3) Builds a 3D model of the house with Ikea furnishing products.

Question 6

What was the result of these digital initiatives on Ikea?

Answer 6

Sales increased by 6.5% for fiscal 2022 and the sales figures was 63.3 billion.