What Is Ikea

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’s furniture appeals more for the low and middle class people, they produce quality furniture at affordable prices.

For example, IKEA provides customer services and facilities such as an in-house restaurant, supervised play area where parents can leave their kids in a safe place while shopping in IKEA, or able to push their children in the pushchairs that IKEA provided.

The combination of creative approach and original designs along with the reasonable pricing policy contributed to the company’s competitive advantage and explains its success even through the crisis periods (IKEA, 2003)

IKEA employs more than 1,000 designers around the world who operate under democratic design culture and apply the concept in practice on a daily basis. The company is putting in the effort to integrate this notion to all of its products. IKEA has developed the notion of democratic design which implies achieving an attractive form, quality, functionality and sustainability at a low price. It is consistently increasing the revenues of the business.

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

IKEA is recognized as one of the reputed brands of Sweden, operating in the segment of ready-to-assembled furniture’s, fittings, appliances, and many others designed accessories and equipments. Although it entered in this segment in the year 1943 in Sweden but very quickly it expanded its operations in the markets of China as well. It is mainly due to its modern architectural stylish designs and eco-friendly nature. This helped Ikea to improve its brand image and profitability by almost 50 percent as compared to previous years. This proved extremely effective for Ikea to enhance its customer bases and reliability in the market among many other rival players (Inter IKEA

Its products are another differentiator that has contributed to Ikea’s success. The look and feel of the

IKEA is a company that is well known globally for its low prices and innovatively designed furniture. The company’s owner Ingvar Kamprad formed IKEA in 1943. (Daft, 2013, p. 287) Originally created in Sweden the company is now globally located worldwide. Amidst its formation it has succeeded in strategically in the success of its internal and external environment, organizational structure, innovation, technology, and organizational culture. As with any company there is always room for improvement. My paper will give detailed information pertaining to IKEA and also suggest recommendations for improvement.

IKEA mission is to offer consumers good value for their money. The typical IKEA customer is young low to middle income family. IKEA success in the retail industry can be attributed to its vast experience in the

Ikea is a renowned global furniture retail shop that was established by Kampard Ingvar in 1943(Bartlett, 2006). The business began as a grocery and stationery of mail order and later turned into furniture as its main business. Currently, it has over 292 branches in 34 countries globally. Ikea has been operating on the motto “better life for everyone”. Ikea focuses basically on good quality of household furniture and low prices of goods. Ikea strives to build a good social benefits structure and good customer care.

They have wide range of products from plants, living room furnishings, toys, frying pans and whole kitchens and so on. Anything will help the customers to build up furnishing.) IKEA also has diversity of style, so the products coordinate with wide function, the customers can easily find their ideal furniture or commodities.

Even though there have been many changes in the economy Ikea has been able to regulate the changes with their success in obtaining the lowest production prices. The company continues to provide high quality furniture that goes with their original concept of stylish furniture for a low price. Ikea offers all kinds of products that cater to most any lifestyle and budget. Ikea still mostly operates their business in the European market. Consequently, they are able to reach more customers in different countries based on the location of their production and distribution centers. Even with the many changes to the economy Ikea has managed to stay in business with their low pricing by developing different products that is in demand by

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 (IKEA 1994). The company targets the customer who is looking for value and is willing to do a little bit of work serving themselves, transporting the items home and assembling the furniture for a better price.

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.”