Like others said, the frame material is a huge part of the cost/value difference. But I'll also point out the fact that the IKEA bike is powder coated, has a belt drive, a coaster break, a disk break, and an internal gear hub. That combination of components makes this bike basically maintenance free. If this bike was left on a bike rack outside a college dorm for a school year it would be perfectly fine; the same can't be said about the Walmart bike. Glace at any bike rack at a college campus and you'll know what I mean.