Can Fast Furniture Really Be Sustainable? - An Analysis of the IKEA Business Model

Abstract

As IKEA represents one of the world’s largest furniture retailers, the sustainability of fast furniture is examined via a case study of the company. Both the Business Model Canvas as well as the Four Forces Analysis framework assist in the analysis of the business model and external influence impacting the sustainability efforts. It is explored, how IKEA integrates sustainability into its operations while guaranteeing affordability and accessibility. Key findings highlight the tensions between IKEA's low-cost, high-volume business model and its sustainability goals. While IKEA has implemented various initiatives to improve sustainability, challenges persist in areas such as supply chain transparency, product lifecycles, and resource consumption. The analysis reveals that fully sustainable fast furniture remains difficult to achieve due to inherent conflicts between rapid production, low costs, and environmental impact. Nevertheless, IKEA's efforts demonstrate potential pathways for the industry to become more sustainable through circular economy practices, sustainable sourcing, and product design innovations. This research contributes to the continuous debate on sustainability in the fast furniture sector and provides insights for companies aiming to balance profitability with an environmental responsibility.