Effects of Globalization on Ikea

Market analysis and effects of globalization on IKEA IKEA is a home products retailer with its branches spreading internationally and is privately owned. It sells furniture, Bathroom and Kitchen items and accessories in flat packs. IKEA is the world’s largest furniture sellers due to its unique concept of the furniture sold in flat packs, affordability and at home assembling by the costumer. Immense retail experience, product diffentiation and reasonable prices are the key for IKEA s success. It is the world’s most successful multinational retailers. In 37 countries IKEA has 301 stores (31 August 2009). Last year a total of 286 million people visited the IKEA Group’s stores around the world, most of them in Europe, North America, Asia and Australia. Its catalogue is printed in 118 million copies in 45 editions (23 languages). History IKEA is owned by a Dutch registered foundation and is controlled by Kamprad Family. It was founded by Ingvar Kamprad in 1943 in Smaland, Sweden when he was only 17 years old. He started with an innovative concept for the economically stricken but hard working people of Smaland. He first started his company with 15 co workers. His concept mainly based on cost cutting solutions which do not affect the quality of the product and thus offering the sale in a much lesser price than his competitors. He never compromised on the quality but he scrapped from everything else. The word IKEA comes from the first initials of his first and last name and the farm and the village he came from (Elmtaryd and Agunnaryd) Corporate Structure IKEA is owned and operated by convoluted groups of profit and nonprofit corporations. The corporate structure of IKEA has two major parts: Operations Franchising. Management of various stores is the IKEA Operations responsibility. INGKA Holding is a private Dutch company which is owned by Stichtting INGKA Foundation which was established in 1982 in Netherland as a tax