Section II$-$ Case Study

IKEA is the world's largest furniture retaller and is known as a flat$-$pack retaller that sells mostly wooden

furniture. In recent years, it added other fixtures and fittings and it directly sells to the final consumer.

lkea is known for designing its own furniture but does not manufacture the furniture it sells. While most

of its products are designed in Sweden, much of the actual manufacturing takes place in China and in

developing countries such as Vietnam, Malaysia and Myanmar, and also in Eastern European countries

such as Romania and Poland. In $2015,$ IKEA purchased a Romanian forest; the company added to this

by purchasing forestland in Alabama in $2018$ aiming to create a sustainable supply chain. Ikea is known

in controlling much of the raw material production through its subsidlary $-$ Swedwood, which was

renamed in $2013$ to IKEA Industry.

Describe IKEA's industry value chain and vertical integration. Refer to the case to support your

answer by facts mentioned above I

Realizing that hungry customers buy less, IKEA decided to open a restaurant in every store so

that customers enjoy their stay and continue their shopping after eating. What type of

strategv did IKEA use by its added business? Support your answer with a convincing argument