Ikea

Good Essays
Background of the company

IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories. The company is the world 's largest furniture retailer. Founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, the company is named as an acronym comprising the initials of the founder 's name (Ingvar Kamprad), the farm where he grew up, and his home paris (Timetoast, 2013). IKEA has 300 home furnishing superstores in 35 Countries and was visited by some 583 million shoppers (K. Kling and I. Goteman, 2003). IKEA’s low priced elegantly designed merchandise displayed in large warehouse stores, generated sales of $21.2 billion in 2008, up from 4.4 billion in 1994 (Pattairman, K., 2013). The fledgling company sold fish, charismas magazine, and seeds from his family farm. His first business had been selling matches, the enterprise Kamprad purchased them wholesale in 100 box lots and then resold individually at a higher mark up. Before long, Kamprad had added ballpoint pens to his list and was selling his products via mail order.

In 1948, Kamprad added furniture to his product line. In 1949 he published his first catalogue (Timetoast, 2013). Kamprad hired 22 years old designer, Gillis lundgren originally helped Kamprad to dophoto shoot for catalogue but, later he became a designer of many furniture for IKEA. Its goal was over time to provide stylish functional design that can be cost effective. Ultimately this led to concept of what IKEA calls “democratic design”. In 1957, IKEA started to exhibit and sell its products at home furnishing fairs in Sweden (Pattairman, K., 2013). By 1958, an expanded facility at the Almhult location became the first IKEA store. The original idea behind the store was to have a location where customer could come and see the IKEA furniture set up. Kamprad experimented with adding restaurant to the store so that customers could relax and refresh



References: Azlan, A. (2014). Kampungniagacaliphazlan. Retrieved March 23, 2015, from http://kampungniagacaliphazlan.blogspot.com/2014/10/5-rahsia-kejayaan-para- sahabat-nabi.html Jafry, A. (2012). SWOT, PESTEL, Porters Five Forces and Value Chain analysis of IKEA.  London :http://www.afsheenjafry.com/IKEA.pdf. Journal, H. (2011). Ikea 's Strengths, Weaknesses, Oportunities and Threats. Retrieved November 22, 2013, from Hign 's Journal: http://highn.me/ikea-strengths- weaknesses-opportunities-and-threats/ K. Kling and I. Goteman, (2003). IKEA CEO Anders Dahvig on international growth and IKEA is unique corporate culture and brand identity. Academy of Management Executive. Retrieved February 2003. Vol. 17. Kokemuller, N. (2011). Advantages of the Cost-Leader Strategy. Retrieved March 30, 2015, from http://www.ehow.com/info_8611808_advantages-costleader-strategy.html Pattairman, K. (2013). IKEA Pest Analysis. Retrieved November 25, 2013, from Slideshare:http://www.slideshare.net/kripap/pest-analysis-20947996 SA, I. (2012). About IKEA Retrieved November 19, 2013, from IKEA SA:http:// www.ikea.com/ms/en_AA/about_ikea/the_ikea_way/index.html Timetoast. (2013). IKEA. Retrieved December 03, 2013, from Timetoast:http://www.timetoast.com/timelines/ikea—2 Torekull, B. (2011). The Ikea Story. Sweden: IKEA

You May Also Find These Documents Helpful

  • Powerful Essays

    This analysis detailed the history of IKEA Company since its establishment by Ingvar Kamprad in 1943 to the world wide expansion and future it faced in 2008.…

    • 5855 Words
    • 24 Pages
    Powerful Essays
  • Good Essays

    In 1943, IKEA was founded by Ingvar Kamprad at his home town, selling mainly pencils, postcards and other merchandise. From late 40s to early 50s, manufacturing furniture was introduced as a complement to general merchandise. This enabled Kamprad to step in the furniture business and exploring situation and finding new opportunities. The business had gain massive success in the domestic market for the since opening and the key to its achievements is Kamprad’s leadership. He not only had the vision for the furniture industry, market’s situation, and enthusiasm for business, but Kamprad also played an important role in managing the company’s resources, turned it into capabilities and prove IKEA’s distinctive core competencies. Example for that can be IKEA’s leap on the furniture retail industry: more affordable products to target the large amount of customer, showroom and store’s concept, better customer experience……

    • 993 Words
    • 3 Pages
    Good Essays
  • Good Essays

    IKEA is one of the world’s top low-cost furniture retailers. IKEA was founded in Sweden by Ingvar Kamprad in 1943, when he was just 17 years old and is now owned by a Dutch-registered foundation, controlled by the Kamprad family. Inter IKEA Systems B.V. is the owner/franchiser of the IKEA trademark and Concept. The company name is a composite of the first letters in his…

    • 7197 Words
    • 29 Pages
    Good Essays
  • Powerful Essays

    Ikea Case Study

    • 5443 Words
    • 22 Pages

    IKEA was established by Ingvar Kamprad in Sweden in 1943 when he was just 17 years old. The fledgling company sold fish, Christmas magazines, and seeds from his family farm. His first business had been selling matches; the enterprising Kamprad purchased them wholesale in 100-box lots (with help from his grandmother who financed the enterprise) and then resold individually at a higher markup. The name IKEA was an acronym: I and K his initials; E stood for Elmtaryd, the name of the family farm; and A stood for Agunnaryd, the name of the village in southern Sweden where the farm was located. Before long, Kamprad had added ballpoint pens to his list and was selling his products via mail order. His warehouse was a shed on the family farm. The customer fulfilment system used the local milk truck, which picked up goods daily and took them to the train station.…

    • 5443 Words
    • 22 Pages
    Powerful Essays
  • Satisfactory Essays

    Case Study

    • 363 Words
    • 2 Pages

    IKEA established itself as the largest furniture retailer in Sweden by the early 1970s by reinventing the wheel of furniture manufacturing at that time. Majority of furniture manufacturers in Sweden produced expensive products with designs that were basic or passed down generation to generation, additionally other manufacturers stores where located in downtown crowded areas. IKEA’s strategies which consisted of low cost low priced furniture, bold intricate designs, self-assembly, and stores located in open rural areas all contributed to them becoming the largest furniture retailer in Sweden.…

    • 363 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Ikea Case

    • 1173 Words
    • 5 Pages

    a. IKEA’s simple, yet unique designs are undoubtedly a critical factor in its success as a furniture retailing company. In its early years, IKEA’s cost-focused strategy led to its manufacturing of “low-priced furniture [that] was functional at best, ugly at worst” (4). However, over the last decade, the company has deliberately focused on creating products with a more distinct design aesthetic. Today, consumers appreciate IKEA furniture for its both its functionality and appeal, rather than solely for its functionality. Ingvar Kamprad, the company’s founder, first introduced furniture into the IKEA product range in 1947. He solicited local Scandinavian manufacturers in the forests close to his home to design and build the furniture. The history of Scandinavian influence on IKEA’s products and its company culture was a major factor in its success.…

    • 1173 Words
    • 5 Pages
    Good Essays
  • Better Essays

    A factory was turned out into a first ware house showroom by IKEA in 1953 and then the company had a turnover of 80 times that of the average furniture store within eight years. By 1965, IKEA opened another store in Stockholm on the outskirts of the city. By 1973, IKEA opened seven more stores in Scandinavia. Since there were people in Sweden who were younger and looking for less expensive, but stylish furniture to furnish their apartments so, the company was highly successful as it appealed to a different set of customers (Bartlet & Nanda, 1996). IKEA had looked beyond the typical customer within the furniture industry and made its competition irrelevant. Kamprad found an untapped group of customers and decided the company would not try to beat the competition, but rather change the…

    • 1676 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Ikea

    • 252 Words
    • 2 Pages

    IKEA associated with manufacturers in foreign countries that provided goods for a lower cost to the company. IKEA bought rugs from India at a cheaper price, “To create a better everyday life for the many people, however IKEA did not know that India was using child labor. They gained success by selling furniture to the public for a lower price. Unfortunately, IKEA was accused for child labor in India. IKEA was told that their producers were using child labor, which means that there were children working in their factories and homes.…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ikea

    • 524 Words
    • 3 Pages

    POLITICAL-Foreign investment restrictions-Companies as charity for tax avoidance-VAT increase to 20%-Globalization has eased import rules.-Government regulation climate change act 2008)…

    • 524 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    ikea

    • 529 Words
    • 3 Pages

    For Wal-Mart customers, it is divided into three main segments: “value-price shoppers” (New Venture Lab, 2012). (It means customers prefer to low price). “Brand aspirations” (New Venture Lab, 2012). (People who are infatuated with goods have the same name with brands), and “price-sensitive affluent” (New Venture Lab, 2012). (Customers who like deals). This…

    • 529 Words
    • 3 Pages
    Satisfactory Essays
  • Best Essays

    IKEA

    • 3644 Words
    • 15 Pages

    Expansion Options and Recommendations – team did a great job with the analysis and support…

    • 3644 Words
    • 15 Pages
    Best Essays
  • Better Essays

    IKEA has an innovative strategy that has made IKEA Group a top furniture retailer around the globe. What distinguishes IKEA from other furniture retailers is that the stores are entirely self-service and all furniture is purchased unassembled, and furthermore, IKEA strives for a combination of quality and cost-efficiency in the production and sales of items. Additionally, there are features in every store to mitigate the furniture shopping process, including child playrooms and Swedish Cafés. IKEA was founded by 17-year-old Ingvar Kamprad in 1943, the flagship store opened in Stockholm in 1965, and today (as of 2002) there are 154 stores in 22 countries. The company’s success and customer approval rates are exceptional; though there are weaknesses and room for growth in IKEA’s strategy, particularly in the highly competitive and fragmented U.S. market.…

    • 1536 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Ikea

    • 937 Words
    • 4 Pages

    IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds, chairs, desks, appliances and home accessories. The company is the world's largest furniture retailer, founded in Sweden in 1943 by 17-year-old Ingvar Kamprad, who later became one of the richest people in the world.…

    • 937 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Ikea

    • 7020 Words
    • 29 Pages

    The most successful retailer for mass market in the world is known to be IKEA which sells Scandinavian style home furnishings and other house goods in 301 stores in 41 countries. IKEA hosted 522 million shoppers last year. IKEA is a short word which stands for Ingvar the first name of the owner, Kamprad the last name of the owner, Elmtaryd the name of the farm where Ingvar grew up in, and Agunnaryd the name of the village near to Ingvar’s childhood home. IKEA was founded in 1943 when Ingvar’s father gave him money for his high grades in school, Ignvar was 17 years old back then. Ignvar started selling products to his customer by going to their houses and selling pens, wallets, picture frames, table runners, watches, jewelry and nylon stockings. In 1945, IKEA was advertised in the local newspaper for the first time and he developed a catalog for his products. In 1948 furniture was introduced to IKEA and within five years the first IKEA store opened in Sweden where the customers were able to see and touch the furniture of IKEA for the first time before ordering and purchasing them. IKEA started designing their own furniture in 1956 after competitors were pressuring suppliers to boycott IKEA and stop supplying them. This is made by approximately 1,500 suppliers located in more than 50 countries across the world. The idea of flat packaging came when an employee in Ikea disassembled the legs of a table to be able to fit it in the car to transport it. This was also done so the table doesn’t get damaged while transported. By 1970, IKEA has expanded and opened stores in different parts in the world, adding to them the IKEA restaurant. In 2000, IKEA initiated a project in India against child labor in cooperation with the UNICEF where more than 80,000 children were provided with education rather than being pulled into child labor. In that same year, IKEA’s customers were given the option to shop online. By 2006 IKEA has opened more than 200 stores around the…

    • 7020 Words
    • 29 Pages
    Powerful Essays
  • Powerful Essays

    Assignment

    • 3423 Words
    • 14 Pages

    IKEA is a global German company originally founded in Sweden in 1943 by 17-year old boy – Ingvar Kamprad. The name of the company in an acronym of initials of the founder (Ingvar Kamprad), farm where he was born and grew up (Elmtaryd) and his hometown in Smaland, South Sweden (Agunnaryd). It is positioned on the designing and selling self-assembling furniture, home accessories and wide range of other…

    • 3423 Words
    • 14 Pages
    Powerful Essays

Related Topics