The Evolution Of IKEA

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Introduction 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…show more content…
This forced him to design items in-house. Kamprad is also behind the simple, yet revolutionary innovation that is the flat pack. He began selling IKEA products in flat-pack form, from his own warehouses. Thus, the basic IKEA concept – simple, affordable flat-pack furniture, designed, distributed and sold in-house – was complete. Kamprad, felt he was not just cutting costs and making money, but serving the people as well. Kamprad’s business grew. Evolution of IKEA 1940s-1950s The root of a furniture dealer Ingvar Kamprad is entrepreneurial in developing IKEA into a furniture retailer. This period sees the exploration of furniture design, self-assembly, advertising, the use of a catalogue and a showroom to reach the many people. 1940s-1950s In 1951 IKEA founder sees the opportunity to sell furniture on a larger scale using a catalogue. The IKEA catalogue that we know today is born. In 1953 Furniture showroom opens in Älmhult, Sweden. This is an important moment in the development of the IKEA concept - for the first-time customers can see and touch IKEA home furnishings before ordering them. The innovation is a success; people wisely choose the products with the best value for money. In 1955 They start to think about the flat package…show more content…
1980s IKEA expands dramatically into new markets such as USA, Italy, France and the UK. More IKEA classics arrive such as KLIP PAN, LACK and MOMENT. IKEA begins to take the form of today's modern IKEA. In 1982 The IKEA Group is formed and its owner is a foundation, the Stitching INGKA Foundation, which is based in the Netherlands. In 1984 • IKEA FAMILY, the new customer club, is launched. Today, IKEA FAMILY is in 16 countries (over 167 stores) and has about 15 million members. • The IKEA catalogue print run expands to 45 million copies, in nine languages. In 1985 IKEA now has 10,000 co-workers and 60 stores in the IKEA Group. 1990s IKEA grows even more. Children's IKEA is introduced and the focus is on home furnishing solutions to meet the needs of families with children. The IKEA Group is formed and responsibility for people and the environment is seen as a prerequisite for doing good
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