While browsing, I came across this video which shows the crowd lining up on the opening day of IKEA's new location in Hyderabad, India. I was astonished and surprised to see this frenzy mob eagerly and enthusiastically waiting to shop! That's right.. Waiting to shop at IKEA! The Last time I saw people lining up to shop was when everyone wanted to get the latest and the greatest iPhone in their hands. What surprised me the most is how a Swedish based "home furnishing" store managed to build fan-base over more than a billion people all over the world? How does IKEA manage to scale their operations at this level?

I am listing down some observations I made which I think separates IKEA from the rest of its competitors.

• Brand Identity: Have you ever wondered why IKEA always manages to get stores next to the highway? Why does the name carry blue, orange and yellow colors? This is exactly the way IKEA wants its customer to perceive the image. When you see pictures of IKEA's furniture, living room set-up or kitchen, you know its IKEA Ad. Every advertisement carries a message of ease, simplicity, and maximum usage of space.

• Supply Chain: IKEA does not believe in "one size fits all" policy and respects each supplier and their respective designs. HEMNES chest and FINNBY book case are made by different suppliers in different countries, but the part supplier is a common manufacturer from China. This policy of keeping it simple reduces the complexities in the supply chain and makes it easier for the business to track cost, quality, reliability, etc.

• Content Marketing: Did you know IKEA prints more than 213 million catalogs a year? Probably this is the most printed book in the world. IKEA website is worse than that of a local grocery store in my neighborhood. The intention here is to draw the customers to the store. From inspiration boards on Pinterest to custom video ads, IKEA has managed to keep its customers hooked.

• Experience: I personally feel this is the major contributor to the customer retention. $1 hot dogs or free coffee for members, design the whole room, paper tape measure, aesthetically designed floor-plan and layout, etc., a lot of thinking has been done to enrich customer experience.

• Financials: IKEA is not a publicly traded company and hence doesn't need to answer Wall Street. It has no long-term debt, no shareholders, real estate in which every store sits is owned by IKEA, and with every new store opened, revenue grows over more than $100 million in sales and billions in revenue. Maybe not bad for a company that did not see profit for first 15 yrs?

Last week, I went to IKEA to buy a shoe organizer with a budget of $30. I was glad to find one for $19 but ended up buying other items which totaled my bill to $123. Did I mention understanding Retail Psychology as one of IKEA's core strength?

I am sure there are more factors that could be contributing to IKEA's success but the major five areas I mentioned above is critical for success of any business. Just like how right ingredients make good food, every business needs to build on its strengths and focus on its strategies.

Turn Failure to lesson, lesson to learning,

learning to strength, strength to success.

Last week, I went to IKEA to buy a shoe organizer with a budget of $30. I was glad to find one for $19 but ended up buying other items which totaled my bill to $123. Did I mention understanding Retail Psychology as one of IKEA's core strength?