Ingvar Kamprad and Ikea

Topics: Ingvar Kamprad, IKEA, Älmhult Municipality Pages: 4 (1365 words) Published: November 17, 2010
Ingvar Feodor Kamprad is a Swedish business magnate and the founder of IKEA, which became the world’s largest home furnishings retailer. As well as the founder he is the strategic architect and cultural guru of the company. Kamprad had the major role in Ikea’s success. He had a vision “To create a better everyday life for the majority of people” and extended it out to the organization. He took his vision and translated it into the IKEA spirit – cost consciousness, simplicity, humility and enthusiasm. This idea showed his capacity of identifying market tendencies; focused on younger buyers and with a low income who want to furnish their apartments at a low price (exhibit 3). With this and the present situation of the company we can say that he had the capacity to identify market tendencies. Between 1935 and 1946 furniture prices rose 41%. Ingvar had the capacity to turn this problem into a business opportunity and eliminate every barrier which emerged in his business by creating an immediate solution. People didn’t want to wait for long periods of time for furnishing items; this happened a lot in many companies, so with IKEA concept this problem didn’t occur. New concepts were created in the IKEA way which adapted to modern lives, such as self-service, knock-down kits, explanatory tickets and suburban stores with large parking that brought the cash-and-carry concept. In relation to production flexibility IKEA uses less expensive, good quality alternative materials, searches for unconventional suppliers, ensures their suppliers’ delivery schedule security and fills their available manufacturing capacity, develops long-term relations with suppliers by supporting them technically and financially and encouraged them to invest and drive down manufacturing costs. With this the company is able to charge low-prices; the primary determinant of purchase by customers with 44% even over design – 14% (exhibit 3). IKEA came to solve many problems to which customers encountered...
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