IKEA established in the era of 1940s when furniture industries found it hard to get going and

establish themselves. It started from a village in Sweden and had become one of the most
successful retailers as far as home furnishings are concerned. It crossed leading brands such as
Pepsi and went on to become the 44th successful brands out of 100 way back in 2002. It had as
many as 160 stores in different parts of the world. The strategy was quite simple, to sell well
furnished or well-designed products at a very reasonable price and that is the reason why it
propelled. Initially, it was limited to Sweden only but after the huge success there, they decided
to expand their business and thus they were in search of other countries in order to start a
business. Scanadian countries supported them very well comparatively other European countries
but a reflection on their strategy worked well for them and that's why they started to grow in
Europe as well. 

In 1985, when IKEA entered the US, problems started to grow for them as they were not meeting
the needs of local people there or they were not providing the basic household items plus
furniture kits. As a result, IKEA had to reassess and reflect on its strategy to grow in the US
markets. So they finalized a standardized product strategy which definitely did wonders for them
in the US markets. IKEA'S revenue increased by a percentage of 19 in the US markets. They did
compromise on their strategies such as the corporate strategy to do well. But it was understood
that if multinational companies do not support a local business, it cannot prevail.