Option 3- Using more Particleboard

1. Particleboard is a wood based material which is made by compressing wood

chips with glue. IKEA wished to go from 55% to 80%.
2. Pros-
• The yield from log is a lot higher than solid wood.
• Less dense; hence lighter and easy to transport
• Cheaper than solid wood
3. Limitation-
Customers perceive solid wood to be superior and are not willing to pay as much
for the particleboard.
Option 4- Using more recycled wood
1. Currently 4% of all wood sourced by IKEA is recycled and it aims it to be 10%.
2. Pros-
• Significantly cheaper than solid wood
3. Limitations-
• Need to adapt manufacturing plants to accept recycled wood.
• Plants have to be located near urban areas for it to be economically viable
• Countries with abundant wood may not take recycling seriously.
• Countries like India lack logistical infrastructure to transport & process used
furniture into recycled wood.