Culture of Ikea
INTRODUCTION
BACKGROUND
Ikea Svenska AB, founded in 1943 is the world 's largest furniture retailer which specializes in stylish but inexpensive Scandinavian designed furniture. It has 128 fully-owned stores in 26 countries, visited by over 108 million people yearly and worldwide sales of about $5.4 billion in 1994. IKEA 's success in the retail industry can be attributed to its vast experience in the retail market, product differentiation, and cost leadership.
The company is, perhaps, one of the World 's most successful multinational retailing firms operating as a global organization based on its unique concept that the furniture is sold in kits that are assembled by the customer at home.
MISSION
IKEA 's mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them. The company targets the customer who is looking for value and is willing to do a little bit of work serving them, transporting the items home and assembling the furniture for a better price. The typical IKEA customer is young low to middle income family.
IKEA HERITAGE
The soul of IKEA is symbolized by a row of stones from the cold stony grounds of Smaland, Sweden. Smaland is one of the poorest regions in Sweden-- its ground is stony and unconducive to agricultural development. Yet, the people of Smaland have thrived and become renowned for their thrift, inventiveness and hard work.
This characterizes the spirit of Ingvar Kamprad, founder of IKEA. Ingvar Kamprad was born in 1926 on a farm called Elmtaryd in the village of Agunnaryd (hence the acronymous name for IKEA). Ingvar sold matchsticks and pens as a boy. At the young age of 17, Ingvar registered the IKEA name in 1943. In the 50s, IKEA started to sell furniture at factory prices by mail order. This was met with firm resistance and boycotts from the established furniture trade, and IKEA was even banned
BACKGROUND
Ikea Svenska AB, founded in 1943 is the world 's largest furniture retailer which specializes in stylish but inexpensive Scandinavian designed furniture. It has 128 fully-owned stores in 26 countries, visited by over 108 million people yearly and worldwide sales of about $5.4 billion in 1994. IKEA 's success in the retail industry can be attributed to its vast experience in the retail market, product differentiation, and cost leadership.
The company is, perhaps, one of the World 's most successful multinational retailing firms operating as a global organization based on its unique concept that the furniture is sold in kits that are assembled by the customer at home.
MISSION
IKEA 's mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them. The company targets the customer who is looking for value and is willing to do a little bit of work serving them, transporting the items home and assembling the furniture for a better price. The typical IKEA customer is young low to middle income family.
IKEA HERITAGE
The soul of IKEA is symbolized by a row of stones from the cold stony grounds of Smaland, Sweden. Smaland is one of the poorest regions in Sweden-- its ground is stony and unconducive to agricultural development. Yet, the people of Smaland have thrived and become renowned for their thrift, inventiveness and hard work.
This characterizes the spirit of Ingvar Kamprad, founder of IKEA. Ingvar Kamprad was born in 1926 on a farm called Elmtaryd in the village of Agunnaryd (hence the acronymous name for IKEA). Ingvar sold matchsticks and pens as a boy. At the young age of 17, Ingvar registered the IKEA name in 1943. In the 50s, IKEA started to sell furniture at factory prices by mail order. This was met with firm resistance and boycotts from the established furniture trade, and IKEA was even banned