Ikea Essay

IKEA is an abbreviation of Ingvar Kamprad Elmtaryd Agunnaryd. The initials come from the name of the founder, the farm where he grew up and his home parish. The firm has grown rapidly since it was founded in 1948. From a very young age, Kamprad started selling furniture and he always kept his low costs - so low that other furniture stores pressured the National Association of Furniture Dealers in Sweden to stop providing Kamprad with products. The first store of IKEA was opened in Almhult, Sweden. The next stores are in

In IKEA’s history two different modes of entry were used. Both were met with big success and allowed IKEA to enter new markets very easily, and in a secure way.

Generating awareness in a new country is a very expensive task whereby you need unique techniques to help the community recognize IKEA as a company and the products it sells. The most common methods used were TV and radio advertisements, sending marketers to the markets to do the marketing one on one with the customers or the buyers in the community, and by putting up billboards and posters around urban areas. Due to its exposure in different countries, they had to train employees who have been working with the company for several years to learn foreign languages to help expand the company. This idea helped the company venture into a new country and do the marketing.

The results I have gotten from doing this are that there are many factors of a business that affects other things such as the consumers and the environment, (for example, pollution affecting the environment or noise pollution effecting the people). These factors may result in loss of profit or loss of customers and cause problems within the company. I have also learnt there are many factors that a company must consider when creating a business to ensure it doesn’t impact

IKEA was truly built from the ground up. It was started in 1943 by Ingvar Kamprad when he was 17 years old, from a shed on the family farm. In the beginning, the company sold fish, Christmas magazines, and seeds to eventually add pens, then furniture to its product list. In the beginning the company had used the milk truck as part of its delivery system to get orders to the train station. In 1953 when the milk truck changed it route, it was no longer available to get items to the train station. This motivated Ingvar to invest in a nearby idle factory and convert it into a warehouse. By this time, with the help of the free catalog which started back in 1949, the business was

Founded in 1943 by Ingvar Kamprad, IKEA is, over 60 years later, the world largest furniture retailer, providing products in a flat packing concept and at low prices. They have 226 stores in Europe, Asia, and America with revenues of $17.7 Billion as of August 2005. 70% of their marketing communication is based on their famous annual catalog. There are many environmental factors that affect IKEA’s global and domestic marketing decisions. An analysis of those factors, the influence of the global economic interdependency and the effect of trade practices and agreements, the demographic and physical infrastructure, the cultural differences, social responsibility and ethics versus legal obligations, the effect of political systems and the influence of international relations and the Foreign Corrupt Practices Act of 1977, and finally the effect of technology are discussed herein.

We believe what is good for society is good for IKEA. We are passionate about creating a successful business where we act in a responsible way through small and large actions. It is a way of being. This is why sustainability is a cornerstone in the IKEA strategic direction – it is highly prioritized and serves as a driver of further innovation and development. Economizing with resource, finding new ways of doing things and developing our knowledge and expertise are important parts of our business idea and heritage. A low price company must be a low cost company, and this includes being careful with earth’s limited resources. IKEA has unique capabilities and tremendous enthusiasm to make a positive contribution across the world – from the forests of Siberia to the cotton fields of India and all the way into people’s homes in New York, Lisbon and Shanghai. Our customers rightly expect us to not only to make our products in a responsible way, but also to help them live more sustainable

This timeline depicts the yearly revenue of the IKEA Group global from 2010 to 2013. In 2012, the global revenue generated by IKEA group amounted to 27.6 billion Euros. The 4P’s such as Product, Price, Promotional and Place strategies are the vital reasons for the increasing income for IKEA.

In this business report on the global retail business IKEA, it will cover the nature of business, influences on operations, operation processes, operation strategies and how the business can sustain competitive advantage. IKEA was founded in 1943 by Ingvar Kamprad in Älmhult, Sweden. The business established after and with the money his father awarded him for succeeding in his studies, Kamprad sustained a cash inflow by selling pens, wallets, watches, picture frames, table runners, jewellery and nylon stockings at reduced prices to customers. Although, later on in 1958, IKEA was introduced as a leader of Swedish Furniture Company as they started to produce local furniture by the Swedish local manufacturers, which gained positive attention from their customers. Eventually, developing flat packs of furniture for storage and self assembly, making their signature style of IKEA and turning the small business into a global sensation.

IKEA is the largest furniture chain in the world, and in 2011 the Swedish company operated over 270 stores in 25 countries. In 2011 IKEA sales soared to over $35 billion, or over 20% of the global furniture market. Most of its stuffs believed IKEA will massive growth throughout the world in the coming decade because IKEA could provide what customer wanted: good design, and good made contemporary furniture with an affordable price. In one word, IKEA’s global approach focuses on simplicity, attention to detail, cost consciousness, and responsiveness in every aspect of its operations and behavior. (Jones, 2013)

The stores have restaurant, childcare facilities and plenty of parking. Customers can drop off their kids at the playroom and have delicious meal when they are tired. All of these not only provide customer with a comfortable shopping environment but also let them make an ‘IKEA trip’ and enjoy the fun of buying. Besides, IKEA’s distinctive show rooms help creating differentiation. Products are strategically placed in different small spaces like rooms which allow customers imaging this furniture in their own home. This makes everything looks more attractive.

The IKEA Group, one of the world’s top furniture retailers, has emerged as the fastest-growing furniture retailer in the US. Its unique business strategy has given it its strengths for its success today. However, like all strategies, IKEA’s strategy has its own flaws that can pose as weaknesses. IKEA also has a lot of opportunities in the marketplace such as expansions of their company and threats such as competitors in the same industry.

the China market IKEA China has been allowed to exceed and expand its sourcing of

The history of the company is very colorful and interesting. IKEA was founded in 1943 in the south of Sweden in Smaland. Its founder was seventeen - Ingvar Kamprad. The boy had a great deal of business, and IKEA was not his first venture. Previously, he was selling matches in his hometown. His capital for the establishment of IKEA comes from his father, who rewarded him for good academic performance. He called his company IKEA from the first letters of his name, and the names of the family farm and the village Agunnaryd Elmtaryd. The company initially dealt with the sale of feathers, frames, wallets, tablecloths, watches, jewelry, stockings and fine furniture. Kamprad to transport their goods, borrowed a truck from the local milkman.

Capell, K. ( November 14, 2005). Ikea, How the Swedish Retailer Became a Global Cult Brand," Business Week, pp. 96-101. Retrieved from