Ikea in India

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

Growth plans and opportunities. Presently, IKEA aims to open 10-20 new retail outlets annually, with forecast of double sales target in a timeframe of five years. These targets can be accomplished through strict control functions and monitoring of inventories to ensure keeping costs at the minimum (Kelly, 2010, p. 3). In fact, in spite of inflation rate and rising cost of raw materials and fuel, IKEA has managed to reduce its average costs by 0.8% in FY2012 (“IKEA Group,” cited in “Strategic Supply,” 2013, p. 4).

The IKEA brand was founded by Ingvar Kamprad in Sweden 1943. The household furniture giant has been named the worlds largest furniture retailer since 2008, and its ready to assemble furniture and low prices has seen stores set up all over the globe as well as the UK. The IKEA company is a private business so its shares aren’t sold and traded to and with the public. Its business concept aims to target a wide market at low prices and officially states “We aim to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”(IKEA, United Kingdom, 2015). IKEA UK has 18 stores and is growing rapidly with plans to open more stores and stores on the high street for small goods.

I used online resources, academic journals and the course prescribed textbook to understand and analyse and develop a theoretical explanation of IKEA 's expansion, hurdles and The approach clarifies how IKEA 's traditional competency base needed to be preserved, renewed, adapted, and reinvented to match the market and institutional demands of the variation in the global market. The focus of my theory-based analysis is on the identification of the enabling and constraining factors that influence IKEA 's success. Political, environmental and social factors have been highlighted to illustrate IKEA’s accomplishments and its deficits. These factors have been accounted in since they draw attention to the changes and developments in the global arena, vital for globalization and growth of trade across nations. This helps understand the macro environment and the strategies aligned with the global changes affecting the business landscape.

The company is known for modern designs, in various appliances and furniture, and its interior design work with eco-friendly simplicity. Furthermore, the firm is known for its cost control, operational details, and continuous product development. These corporate attributes allowed IKEA to lower its prices, during a period of expansion.

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.

IKEA is one of the most successful manufacturing and retail furniture companies operating in today’s global marketplace. IKEA manufacture from the bottom up, top down furniture that offers environmentally friendly, state of the art designed furniture that is both affordable and attractive to its customers via their online, catalogue and worldwide distribution channels, with a logistics network that are low cost footprints with the enforces on cost efficiencies couple with technology, product design, excellence and customer satisfaction. IKEA was founded by Ingvar Kamprad in a small village in Sweden. Its Scandinavian–style home furniture offer attractive designs at affordable prices. And IKEA is obtainable from 275 stores

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 known as a furniture manufacturer and retailer. The company is world renowned and known globally. It specializes in knockdown and discounted good quality furniture. IKEA was founded in 1943 by an individual by the name of Ingvar Kamprad. He wanted to serve price-conscious neighbors in the location of Southern Sweden. IKEA was based on developing innovated modern designed furniture. IKEA was also had the recourse to produce in mass produces and venturing early into Eastern Europe to build a supplier network. This was ideal for the company at this time to begin a business. In 1945, the first advertisement for IKEA appeared in the newspaper. Ingvar’s business soon outgrew hi being able to make sales calls all by himself, so he began

“The IKEA vision is to create a better everyday life for many people. We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”

“Trends come and go, but combining a low price with good design and function never goes out of style” – This quotation tells us a lot about IKEA, a world-wide leading Home Furnishings brand, which was originated in Smaland, Sweden in 1943. Since then, IKEA has officially opened its stores in more than 30 countries, including Singapore.

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 1974, Japan had attempted to establish its business in Japan through a joint venture with a Japanese company. Ikea then withdrew from Japan market in 1986 due to its long term stagnant sales. About two decades later, having the assistance of Japan External Trade Organization, Ikea

In 1943, when IKEA first founded by Ingvar Kampard, it originally sells pens, wallets, picture frames, table runners, watches, jewellery and nylon stockings. After receiving the successful response from customers by selling furniture, the founder saw and grab the opportunity to reinforce its achievement by implementing the radical change during 1951 to 1953 when IKEA’s products transform into home furnishings and also change its way of marketing, from selling through advertisements paper to opening its first furniture showroom because of the external great stress comes from the other competitor. After 3 years of consolidating the new strategy in a relative stable environment, another crisis of supply chains which is also caused by competitors, lead to the revolution of delivery (flat packaging and self-assembly)

Swedish company IKEA is a mass market producer of cheap and stylish home furnishings that appear to transcend national boundaries. The company was founded in 1943 by Ingvar Kamprada small town handyman from southern Sweden, who devised the company name by combining his initials with the first initials of his farm (Elmtaryd) and the parish (Agunnaryd) where he was raised. Today IKEA’s business mission is clear. In the words of the company founder, “We shall offer a wide range of furnishing items of good design and function, at prices so low that the majority of people can afford to buy them.”