IKEA: The History And Concept Of Ikea

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” (www.worldisyouroyster.com). The company was established in 1943 by Ingvar Kamprad in Sweden when he was just 17 years old. Kamprad himself, who still owns the private company, is rumored to be the world’s richest man. IKEA is currently the world 's largest furniture retailer and arguably the most successful global retailer. Being one of the biggest global retailers, IKEA benefited a lot by the globalization of its business; IKEA’s target market is the global middle class who is

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

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IKEA´s mission statement: IKEA offers a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them"

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Being one of the leading Companies in Furniture, IKEA offers an extensive variety of decently composed, useful home outfitting products at costs that are reasonable to individuals who are attracted to their Swedish design. This is the real trick which led to IKEA’s success, advancement in product design development, targeting proper designers and suppliers to how they offer their products in IKEA stores. Over the past six decades, IKEA went from the cozy forested areas of southern Sweden to being a one of the largest competitors in the retail industry in over 40 countries around the globe. The story of IKEA began in 1926 when organizer Ingvar Kamprad is conceived in Småland in southern Sweden. He is raised on 'Elmtaryd' where he began his entrepreneur skills by selling matchsticks as a source of income where he discovered bulk purchases at discounted rates and learnt how to expand his inventory which in turn led to IKEA. IKEA expands their markets, for example, Japan and Russia. Everything from the

Ikea has established strong branding with wide range of stylish products. It focus on offering low-priced and affordable furniture. The furniture is easy to assemble and ship. It offers one-stop shopping and featured the amenities as playrooms for children and Swedish cafes, bank and enough parking spaces. It creates a friendly atmosphere and services to shop and design the store layout for a nice journey of shopping. It has strong global sourcing capabilities.

This report analyses IKEA’s issues, drawbacks and its implications in the global market. Along with reasons behind the furniture giant’s pitfalls, presented are a few solutions to overcome these drawbacks.

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IKEA is an internationally known store for home furnishing, appliances, ready-to-assemble furniture, home accessories and kitchen products. It was founded back in 1943 and is recognized for its Scandinavian style.

IKEA is a furniture company which established in Sweden and It is world’s largest furniture retailer which designs and sells ready-to assemble furniture in more than 40 countries. IKEA was started by Ingavar Kamprad at his age of 17 in 1943, with the gift money received from his father for doing well in school. The company name formed using an acronym made up of his initials and the first letters of Elmtaryd and Agunnaryd, the farm and village in Sweden. After two years Kamprad began using milk trucks to deliver his goods in his business chain. In 1947, he introduced furniture (armchairs) in the product line under the same brand. He used the furniture which is made by the local craftsmen from the nearby forest. Soon IKEA products

The IKEA group sells quality furniture at a low price, to maintain a strong competitor. For that, the company has to try to cut cost without losing quality in the products that it sells.

IKEA is the world’s largest furniture retailer of ‘knock down’ furniture with 300 stores in more than 35 countries. It was founded by Ingvar Kamprad of southern Sweden whose main innovative idea was ‘to offer home furnishing products of good function and design at prices much lower than competitors by using simple cost-cutting solutions that did not affect quality of products so that as many people as possible will be able to afford them. ( www.ikea.com). He used every opportunity to reduce costs without compromising on ideas and quality.

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 congested areas. IKEA’s strategies which consisted of low cost low priced furniture, brave intricate designs, self-assembly,

IKEA was founded in Sweden by Ingvar Kamprad in 1943. IKEA has been established around the world in 26 different countries. Within these countries IKEA has a total of 303 stores. This business is effective in adapting to change through the use of the four key business functions; operations, finance, marketing, and human resources.