The Business Strategy Of IKEA

The well-known ‘build-it-yourself’ product design makes them progressive and makes them running ahead of the competition. IKEA is the only big brand in a category further not present in global markets, there are no real competitors operating in the same category. In 2013 775 million customers visited IKEA in 2013, and its website hosted 1.2 billion visits (4). Due to the ‘build-it-yourself’ product design IKEA is able to provide their customers with high quality and low cost products, even the customers with limited income and limited living space

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

IKEA is an internationally known home furnishing retailer that has grown rapidly since it was founded in 1943 and is renowned around the world for its Scandinavian style. The majority of IKEA 's furniture is flat-pack, ready to be assembled by the consumer that helps in the reduction of costs and packaging. Moreover; IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range of option is available in all IKEA stores and customers can also order much of these items online through IKEA’s website (Frynas & Mellahi, 2011).

Evaluating SWOT of IKEA, the company has developed a strong strength in the industry through effective global marketing strategy that would assist, and continue to help them gain more grounds globally as indicated in the outlined strength. The company has great future opportunities for business expansions in the market as well as developing nations; having said that, their weak point is quality, which is a concern as customers can discouraged because of poor quality, poor relationship with employees can be detrimental to efficiency, their competitive market strategy is low cost product, but create standardized products as such will attract

IKEA is an international company which designs house products and sells them in the form of ready to assemble furniture. It is one of the world’s largest furniture companies. It is founded by17 years old Ingvar Kamprad in Sweden in 1943. The most important fact about the company is the attention to control the cost of the products, which allows them to lower the prices. Even today they are continuing to expand in the world by looking forward to new product developments. The number of stores of IKEA in the United States is 14 at the moment and they aim to have 50 stores by 2013.

IKEA is a unique Swedish furniture company. The company we so widely recognize today for selling good quality budget friendly Scandinavian style furniture began in 1943 as merely selling pens picture frames and wallets. Ikea was founded by a then 17year old Ivor Kampard, of the farm Elmtaryd near the small village of Agunnard in Smaland, hence giving rise to the name IKEA. This area is know for its thrifty and hard working ethos and Kampard very much incorporated this into his business venture. His innovative idea was to offer home furnishing products of good function and design at prices much lower than competitors by simply using cost-cutting solutions that did not affect the quality of products.

IKEA is using a different operation strategy from their competitors. The operation of IKEA has to cope with large volume because their products are highly repeatability and specialised. The variety of products the operation needs to create is low to medium as they offer

IKEA is a non-profit organization which differentiates its business structure compared to other furnishing companies. This structure gives IKEA two main advantages:

IKEA serves a huge product range to the customers. The products of IKEA are well designed and structured, functional products. The company serves its products globally. IKEA’s customers can find the same products in any IKEA store and they can trust their quality. With the vision of creating an everyday life for people, IKEA finds the balance between function, quality, design and price. With merchandising the cost efficient products to the customers, IKEA does not compromise from the profit margins. Having a well structured business model, IKEA can decrease the costs of the products and can serve a competitive price to the customer. While doing that, IKEA creates long term partnerships with its suppliers. The long term partnerships makes lowering costs easier for IKEA since they can easily negotiate about prices. Another advantage about lowering costs is cheaper unit costs. IKEA makes huge amount of purchases so they can decrease the unit costs through the economies of scale principle. Creating better business relationships helps IKEA to make their businesses

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 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.

In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.

In august 2008, IKEA had total 253 stores where 560 million people visited. Here the total sales became 23 billion Euros. Considering 20% sales profit here IKEA’s average customer per store and cost per store are given below:

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.

IKEA was founded in 1943 by Ingvar Kamprad in Sweden. Now it is become the world's largest furniture manufacturer. IKEA is the world's largest furniture retailer that specializes in stylish but inexpensive Scandinavian designed furniture.IKEA's success in the retail industry can be attributed to its vast experience