Description: Lots of us love IKEA. And now comes word that IKEA is looking at a program that will let you take back your old IKEA furniture to the store to receive credit on new purchases. Your old stuff will be resold or recycled, adding a big environmental benefit to the program as well as a convenient way to dispose of items you no longer want.
Date: February 18, 2016
1) Do you have any IKEA furniture in your place at university? Would you be interested in using this return program?
2) From a marketing perspective, do you believe this new program will provide IKEA with a strategic advantage?
3) This program raises similar cost-accounting issues as the trade-in valuation questions for dealers of new and used cars: which profit centre gets to park the profits? What are some of the cost accounting issues IKEA might want to consider in setting up this program?