IKEA and “Green” Paper Dai, Yue

The vision is to create a better everyday life for the many people. IKEA offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. This story happened in the early 1990’s.

The problem identified IKEA found that its customers were becoming more environmentally aware. It was keen to show an environmentally friendly image itself. IKEA produces more than 100 million copies of its catalogue each year. Approximately 40,000 tones per year.

The ideas IKEA thought the catalogue was an obvious place for environmentally friend. IKEA decided to investigate the use of “green” paper for the catalogue. Not choose the existing types of paper, but create new demands.

Manipulating the idea IKEA formulated an environment policy where it was stated that the catalogue should use paper based on TCF (Total Chlorine Free) pulp with at least 10% of recycled fibers IKEA talked with its main paper producer – Haindl (German producer) about the idea. But Haidl was to refuse because at that time there were a few producers of TCF pulp in Europe, and none could produce a catalogue paper using recycled fibers

Reflection According to the reaction of main supplier, IKEA had to start to mobilize paper producers in a number of countries. Try to find someone that prepared to comply with its demand. Provide the largest printers in Europe to paper producers to test the paper, if someone come up with the new paper An Italian and two Finnish companies joined to produce the new paper finally.

Application IKEA successfully produces the “Green” catalogue with the help of the three paper producing companies. IKEA sent the catalogue to attract customer's attention.

Evaluation The catalog attract the attention of customers, thus, increased the total amount of consuming in IKEA. IKEA’s picture of environmental concerns even in details give the customers confidence of their products. The new chlorinefree paper became widely used by other companies.

Customer’s attention move to environmental friend Identify IKEA want to make green catalog Idea 1 Try to find someone 1. formulated an environment policy 2. Talk with supplier Manipulating Suppliers refused Reflection Idea 2 IKEA provide favorable terms to attract suppliers Manipulating An Italian and two Finnish companies joined to produce Reflection Making catalog and sent to customers Applicati on Increasing sell, Environmental friendly Influence other companies Evaluation

Reference Hakan Hakansson, Alexandra Waluszewski. Managing Technological Development (Routledge Advances in Management and Business Studies) Routledge, UK. IKEA. _ikea_way/our_business_idea/a_better_every day_life.html. (Accessible in 19th April 2010) _ikea_way/our_business_idea/a_better_every day_life.html