Ikea Current Event

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

It can also help them gain a temporary competitive advantage because other firms will not be able to imitate them to speak regarding IKEA’s strategy , IKEA’s strategy has continually been to style and develop product supported consumers’ everyday wants, keeping costs low and providing purposeful, engaging and reliable furnishings and solutions. property has been at the basis of IKEA’s strategy throughout its evolution. In 2012 it launched its folks and Planet Positive property strategy, that sets out the company’s approach to achieving positive social and environmental impacts. This property strategy brings all the weather of vision, values and mission along to drive innovation and rework the IKEA business. this may strengthen IKEA’s aggressiveness by securing long access to big raw materials and energy provides, maintaining and developing its provider base, developing relationships with co-workers and customers, and increasing market share

IKEA is a multinational group of company that design and sells home furnishing products and home accessories. IKEA founded in 1943 in Sweden by 17 years old Ingvar Kamprad, who was ranked as one of the wealthiest people in 2013. The IKEA’s name is an abbreviation of ‘Ingvar Kamprad Elmtaryd Agunnaryd’. Ingvar Kamprad is founder name, Elmtaryd is the native farm and Agunnaryd is his native village located in Smaland, South Sweden. In 1943, Ikea operates mail order sale business where to sell everything such as pen, photo frame, watches and ladies leggings. Until 1958, the first IKEA store was opened in Amhult, Smaland. As of 2015, IKEA group has grown into worldwide brand own and operate 373 stores

This paper aims to demonstrate a detailed description of the elements of ‘IKEA’ company based on its famous name in the furniture industry.

Personally I was not surprised to learn that IKEA has the fastest growing international markets both in developed countries such as the United States and emerging economies such as China and Russia. The main reason why it did not was that I know that their products are really affordable, but at the same time of pretty high quality. IKEA tries to have products that are both useful and pleasant, affordable, but still durable. Even if their main target market would be the average or low income consumers, the still have a quality satisfactory enough to reach the expectation of the high income consumers as well. Therefore, it does not really matter the level of general development or the income of the potential customers on the market, they still succeed to convince and prove that their products are reliable at a decent price, that makes it a double benefit for its customers.

IKEA’s mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them. Founder Ingvar Kamprad’s innovative strategy was to design functional furniture that was easy and inexpensive to build, receive it disassembled at stores, and display it on the showroom floor with detailed explanation tickets, making salesperson assistance unnecessary.

It all started in 1943, when Ingvar Kamprad opened his first commercial business in the name of IKEA, which derives from his initials and of Elmtaryd and Agunnaryd, the names of his family farm and the parish he grew up in. At first, it was just a “mail-order business selling pencils, postcards, and other merchandise” (“Milestones”). The company first introduced furniture as a complement to the general merchandise in 1948, and it was an immediate success. As a result, the company “started exploring innovating solutions such as furniture design, self-assembly, and advertising” (“Milestones”).

Ingvar Kamprad Elmtaryd Agunnaryd is the abbreviation of IKEA. The name of IKEA is established from the founder’s name, Ingvar Kamprad (I.K.) plus the first letter of Elmtaryd (E) and Agunnaryd (A), which is the native field and town where he grew up. IKEA is founded in 1943. It is a worldwide company with 127,000 employees that operates 53 stores in 43 countries. IKEA is an international household goods company that designs and betrays ready-to-assemble furniture. For example, couches and desks, implements and household accessories. Ingvar Kamprad is hoisted on ‘Elmtaryd’, a field near the small town of Agunnaryd. Ingvar has an aim even as he just a young child. His aim is develop own business.

IKEA is a business that designs, produces, and sells a furniture to the worldwide market. The company was founded in 1940s in Sweden by Ingvar Kampard (Milestones, n.d.). IKEA brand has been known by customers and become to the world’s largest furniture company. In 2016 IKEA sales increased by 7.9% and total sales amounted to €34.2 billion. IKEA stores are in 28 countries and more than 340 stores. Also, it has an online shopping available in 14 countries (IKEA Group, 2017). A good perspective of IKEA founder has driven the company to be accepted in the marketplace. Kampard has used the word “together” for inspiring the company and IKEA employees to work in the same way. Several reasons have built IKEA more achievement and managed the global environment in terms of operating business, saving cost, managing employees, and expanding IKEA in a new country.

Ikea is a great company that starts from humble beginnings and has made an impact upon the world for almost a century. Ikea is a Swedish company that specializes in selling furniture and other housing products across a market of over 40 countries (IKEA history - how it all began, n.d.). The founder of the Swedish company was Ingvar Kamprad. Kamprad as a child would sell matches, pencils, and flower seeds to the people living around him. Even at a young age, it was evident that the young Kamprad was destined to become a great businessman. In the 1940’s, when Kamprad was just 17 years old, he founded Ikea and was able to create his new business through the money that was awarded to him by his father. What is interesting about Ikea’s name is that Kamprad combined his first two initials of his name with the first initials of the village and farm he grew up in in order to come up with the name, Ikea.

TOP 5 SALES COUNTRIES Germany USA France UK Italy ... AND TOP 5 PURCHASING COUNTRIES China Poland

Ikea, the world’s largest home furniture retailing company, was founded by Ingvar Kamprad. He built his business empire through developing a distinct corporate culture. The Ikean

Ikea, from its humble beginning to a multinational corporation has entered the hearts of many of the world’s citizen thorough its unique design and low cost products. Ingvar Kamprad, the founder of Ikea and the genius behind this phenomenon, continues to build his empire throughout the continents of the world by his vision and bold business strategies. Spanning his wing around the world globally, Ikea is set to make its mark in history.

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,

In contemporary business environment which is highly effected by globalisation and urbanisation, it is interesting to see how IKEA which has been going through successful changes in the past and dominated furniture industry for decades based on its low prices and customer oriented services, to take action after realising the importance of e-commerce and the changing lifestyle in modern society. Thus, this essay is going to discuss from what kind of change and why it has been conducted in the past, its lasting impacts on the ways of change in current business practices, and the analysis of the circumstance for the changes.