IKEA successfully offloads its highest costs—assembly and “last-mile” delivery—to the customer.
- Unique Strategy: By selling flat-pack furniture, they drastically reduce shipping and storage volumes. They use the “IKEA Effect,” where the effort customers put into building the furniture increases its perceived value.
- Why it’s hard to replicate: It requires a specific cultural context where consumers value “affordability + design” over high-touch service. Most competitors who try to pivot to this lose their existing customer base that expects pre-assembled goods.
