IKEA Non-equity Alliances with Suppliers
Please provide a summary of the two questions below:
Question # 1.
IKEA is the world’s largest furniture retailer. It has many non-equity alliances with suppliers and manufacturers around the world. IKEA also makes strategic use of non-equity alliances and stakeholder partnerships to participate in finding solutions to social and environmental challenges. For example, IKEA has had longstanding relationships with Save the Children, UNICEF (United Nations Children’s Fund), and the WWF (World Wildlife Fund, the global conservation organization).
- Please go to IKEA’s website to find information about these and other active partnerships. In what ways does IKEA participate?
- What projects have shown success?
- How do these partnerships relate to maintaining IKEA’s competitive advantage as the world’s largest furniture retailer?
- Define what constitutes success for IKEA and success for the nonprofit partner.
- What resources and capabilities does each party bring to the alliance?
- Refer to Exhibit 9.4 and consider which of these governance considerations would be most important to this particular type of non-equity alliance.
Question #2
Ingvar Kamprad’s influence over IKEA may even be stronger than that of Sam Walton over Walmart because IKEA is privately held, while Walmart is a public company (since 1970). Walmart entered a period of difficulties after Sam Walton stepped down (in 1988 at age 70).