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  • September 2014 (Revised November 2017)
  • Case
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Sustainability at IKEA Group

By: V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain and Jerome Lenhardt
  • Format:Print
  • | Language:English
  • | Pages:21
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Abstract

By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. The plan especially centered on wood, which represented 60% of IKEA Group's total procurement in volume and constituted a key lever for the company to increase its positive impact on sustainability. IKEA Group Management therefore had to decide how to manage its portfolio of wood sustainability initiatives, especially in the context of the company's aggressive growth plan.

Keywords

Furnishing; Sustainability; Supply Chain; Wood; Customer Value and Value Chain; Supply Chain Management; Environmental Sustainability; Growth and Development Strategy; Consumer Products Industry

Citation

Rangan, V. Kasturi, Michael W. Toffel, Vincent Dessain, and Jerome Lenhardt. "Sustainability at IKEA Group." Harvard Business School Case 515-033, September 2014. (Revised November 2017.)
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About The Authors

V. Kasturi Rangan

Marketing
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Michael W. Toffel

Technology and Operations Management
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Related Work

    • August 2015
    • Faculty Research

    Sustainability at IKEA Group: Video Supplement

    By: V. Kasturi Rangan and Michael W. Toffel
    • September 2015
    • Faculty Research

    Sustainability at IKEA Group

    By: Michael W. Toffel
    • September 2014 (Revised November 2017)
    • Faculty Research

    Sustainability at IKEA Group

    By: V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain and Jerome Lenhardt
Related Work
  • Sustainability at IKEA Group: Video Supplement By: V. Kasturi Rangan and Michael W. Toffel
  • Sustainability at IKEA Group By: Michael W. Toffel
  • Sustainability at IKEA Group By: V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain and Jerome Lenhardt
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