Ikea Porter's 5 Forces
Company History:
Based in Denmark, IKEA International A/S is one of the world 's top retailers of furniture, home furnishings, and housewares. The company designs its own items, and sells them in the more than 140 IKEA stores that are spread throughout approximately 30 different countries worldwide. The company also peddles its merchandise through mail-order, distributing its thick catalogs once a year in the areas surrounding its store locations. IKEA is characterized by its efforts to offer high-quality items at low prices. To save money for itself and its customers, the company buys items in bulk, ships and stores items unassembled using flat packaging, and has customers assemble many items on their own at home. The company is owned by founder Ingvar Kamprad 's Netherlands-based charitable foundation, Ingka Holding B.V.
The Early Years
IKEA was founded in 1943 in Sweden by Ingvar Kamprad. Kamprad was born in 1926 as the son of a farmer in Småland, a region in southern Sweden. Småland was historically one of the country 's poorest regions, and its inhabitants were known for their hard work, thriftiness, and inventiveness. In 1943, at the age of 17, Kamprad upheld this characterization when he decided to become an entrepreneur and created a commercial company called "IKEA, Ingvar Kamprad." The word IKEA was an acronym of his name and address: Ingvar Kamprad and Elmtaryd, Agunnaryd--the name of his farm and the name of the village it was located within. Kamprad 's new company was essentially a one-man effort, and sold fish, vegetable seeds, and magazines to customers in his region. He delivered the items to customers using first a bicycle and later the milk round.
In 1947, IKEA issued its first primitive mail-order catalog, within which the newly invented ballpoint pen was added to the assortment of products Kamprad was offering. Then in 1950, Kamprad set the foundation for the future direction of IKEA by adding furniture and home furnishings to the
Based in Denmark, IKEA International A/S is one of the world 's top retailers of furniture, home furnishings, and housewares. The company designs its own items, and sells them in the more than 140 IKEA stores that are spread throughout approximately 30 different countries worldwide. The company also peddles its merchandise through mail-order, distributing its thick catalogs once a year in the areas surrounding its store locations. IKEA is characterized by its efforts to offer high-quality items at low prices. To save money for itself and its customers, the company buys items in bulk, ships and stores items unassembled using flat packaging, and has customers assemble many items on their own at home. The company is owned by founder Ingvar Kamprad 's Netherlands-based charitable foundation, Ingka Holding B.V.
The Early Years
IKEA was founded in 1943 in Sweden by Ingvar Kamprad. Kamprad was born in 1926 as the son of a farmer in Småland, a region in southern Sweden. Småland was historically one of the country 's poorest regions, and its inhabitants were known for their hard work, thriftiness, and inventiveness. In 1943, at the age of 17, Kamprad upheld this characterization when he decided to become an entrepreneur and created a commercial company called "IKEA, Ingvar Kamprad." The word IKEA was an acronym of his name and address: Ingvar Kamprad and Elmtaryd, Agunnaryd--the name of his farm and the name of the village it was located within. Kamprad 's new company was essentially a one-man effort, and sold fish, vegetable seeds, and magazines to customers in his region. He delivered the items to customers using first a bicycle and later the milk round.
In 1947, IKEA issued its first primitive mail-order catalog, within which the newly invented ballpoint pen was added to the assortment of products Kamprad was offering. Then in 1950, Kamprad set the foundation for the future direction of IKEA by adding furniture and home furnishings to the