How IKEA Sells Dreams on a Budget: A Masterclass in Pricing & Design
For any entrepreneur, pricing is a battlefield. But what if you could offer high-quality, desirable products at prices so low they seem impossible? This isn't just a furniture store; it's an eye-opening case study in business model innovation. Welcome to your Personal MBA from IKEA. The Battle Plan Offerings that get less expensive over time. In the past four years, prices were reduced by an average of 20%. Good quality products at prices 30-50% below competitors. "Low Price with Meaning" - IKEA's Corporate Mantra The Spark of Genius: The "Mugh" Story The story of the IKEA "Mugh" mug reveals their entire philosophy. A co-worker had a simple idea for a stackable mug to save space. This embodies the IKEA way: great ideas can come from anyone, but the final product must deliver on function, modern design, quality, and environmental responsibility—all while hitting an unbeatably low price. 1. Pick a Price, *Then* Design This is the most crucial les...