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IKEA
Acquired
E-Commerce Disruption Challenges IKEA's Value Model
IKEA experienced significant growth, hitting $20 billion in revenue by 2007, but faced challenges during the financial crisis and the rise of e-commerce. Instead of fully embracing e-commerce, IKEA opted for minimal participation, aligning with its traditional business model which focuses on in-store customer engagement and cost savings through customer involvement. The complexities and costs associated with e-commerce logistics, including delivery and altered supply chains, contradict IKEA's established strategies of price reduction through customer self-service. This tension jeopardizes IKEA's long-term operational efficiencies and the synergy of its demand and supply chain control.
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