CIM Assignment
LO 2: Be able to support creative and innovative management processes for an organisation
Case Study
IKEA
IKEA was founded by Ingvar Kamprad in 1943 in Sweden, and the four letters of the company name were formed by combining the owner‘s name Ingvar Kamprad with Elmtaryd, the farm, and Agunnaryd, the village, where he grew up. At the beginning, IKEA sold pens, wallets, picture frames, table runners, watches, jewellery as well as stockings to meet the customers‘ needs by offering reduced prices. The company started selling furniture in 1948, which were produced by the local companies, and then expanded its product line after receiving positive feedback from the customers.
A significant moment in the growth of the IKEA concept was the introduction of their first furniture showroom in 1953 in Älmahult, Sweden. A price war between IKEA and its major competitor had taken place; so at this point, the company opened the showroom to take over the competition. This innovative idea of the showroom provided a chance to IKEA to prove that its low-price products have the features of functionality and quality. The main reason behind this was that the customers could actually see and touch IKEA products for the first time before ordering them and to choose the products offering the best value for money.
To achieve more growth and to enter new markets, IKEA opened stores in big markets such as the USA, Italy, France, UK and Belgium in 1980s The company introduced its new customer club card called “IKEA FAMILY’ in 1984. Today‘s modern IKEA started its formation during this time.
During 1990s, IKEA became larger by introducing IKEA‘s children product line to the market. The company‘s focus was to provide furnishing solutions for families with children to meet their needs accordingly. Furthermore, IKEA Group was also created at this time. In 1990, the company introduced its first
Case Study
IKEA
IKEA was founded by Ingvar Kamprad in 1943 in Sweden, and the four letters of the company name were formed by combining the owner‘s name Ingvar Kamprad with Elmtaryd, the farm, and Agunnaryd, the village, where he grew up. At the beginning, IKEA sold pens, wallets, picture frames, table runners, watches, jewellery as well as stockings to meet the customers‘ needs by offering reduced prices. The company started selling furniture in 1948, which were produced by the local companies, and then expanded its product line after receiving positive feedback from the customers.
A significant moment in the growth of the IKEA concept was the introduction of their first furniture showroom in 1953 in Älmahult, Sweden. A price war between IKEA and its major competitor had taken place; so at this point, the company opened the showroom to take over the competition. This innovative idea of the showroom provided a chance to IKEA to prove that its low-price products have the features of functionality and quality. The main reason behind this was that the customers could actually see and touch IKEA products for the first time before ordering them and to choose the products offering the best value for money.
To achieve more growth and to enter new markets, IKEA opened stores in big markets such as the USA, Italy, France, UK and Belgium in 1980s The company introduced its new customer club card called “IKEA FAMILY’ in 1984. Today‘s modern IKEA started its formation during this time.
During 1990s, IKEA became larger by introducing IKEA‘s children product line to the market. The company‘s focus was to provide furnishing solutions for families with children to meet their needs accordingly. Furthermore, IKEA Group was also created at this time. In 1990, the company introduced its first