This Swedish chain began as the vision of one enterprising young man. As a boy, Ingvar Kamprad used to purchase matches in Stockholm, and sell them to people in his native rural town of Agunnaryd at a discount price. Eventually, he applied this concept from matches to mattresses and home furnishings, all at discount prices but without sacrificing quality.
IKEA was founded in 1943 when Kamprad was only 17 years old. The first IKEA store opened in Sweden in 1958. IKEA is an acronym: the first two letters reflect the founder's name: Ingvar Kamprad and e the last two letters stand for the name of the family farm, and the town the founder grew up in: Elmtaryd and Agunnaryd.
Initially, the furniture at IKEA was more or less the same as that offered by other manufacturers in the area. The breakthrough that led to the ‘do it yourself' style of flat packed furnishings came when Ingvar and a designer were trying to pack a table but were struggling with the amount of space it was taking up. In frustration, the designer exclaimed ‘Let's pull off the legs and put them underneath'. Once this was done, it fit neatly into the car and the rest is history.
The IKEA concept is one of the most studied business cases of the century. It was born in 1965, when the largest IKEA store was opened in Stockholm. Nobody was expecting hundreds of people to be waiting to get into the store, so the managers decided to allow people to enter the warehouse and help themselves. That was the origin of IKEA's low prices: purchasing as inexpensively as possible and flat-packing furniture for customers to put together themselves. Then, this concept was subsequently exported to other countries.
Tags: Marketing strategy, International business strategy, International business management, Internationalization,
[...] But IKEA's biggest worries may be the many international and Chinese chains and companies that counterfeit IKEA products. More products are copied now (for example, BIKEA which sells exactly the same furniture as IKEA copying the catalogue) because more IKEA products are made in China and some of their suppliers also supply other furniture and home design companies. Conclusion In conclusion, the world's largest home-furnishing retailer, Sweden's IKEA has been expanding sales all over the world by availing of the national competitive advantage, especially in the increasingly wealthy China. [...]
[...] International marketing STRATEGY IKEA's Global Expansion Strategy was originally established in Sweden by Ingvar Kamprad. IKEA has grown rapidly in recent years to become one of the world's largest retailers of home furnishing. In its initial push to expand globally, IKEA largely ignored the retailing rule that international success involves tailoring product lines closely to national tastes and preferences. Instead, IKEA stuck with the vision, articulated by the founder Kamprad that the company should sell a basic product range that is "typically Swedish" wherever it ventures in the world. [...]
[...] The IKEA concept is one of the most studied business cases of the century. It was born in 1965, when the largest IKEA store was opened in Stockholm. Nobody was expecting hundreds of people to be waiting to get into the store, so the managers decided to allow people to enter the warehouse and help themselves. That was the origin of IKEA's low prices: purchasing as inexpensively as possible and flat-packing furniture for customers to put together themselves. Then, this concept was subsequently exported to other countries. [...]
[...] International advertising execution France advertising execution Rangez 2001 Leagas Delaney Paris Centre Creative strategy Positioning: Reasonable solutions for little budget and small spaces Claim: IKEA promises the beautiful life Target: 18/35 and, urbans Tone: exaggerating, incorrect Catchphrase: "Si vous ne le faîtes pas pour vous, faîtes-le pour les autres" Signature: "Rangez" Used medias TV La petite voiture Le robot Les spaghettis Sous la pagaille La fourchette Cinema La petite voiture Le robot Les spaghettis Press La brosse à dents Le policier La photo Radio Noël La lampe La peluche Affichage Le sac de couchage Abuses 2002 Leagas Delaney Paris Centre Creative strategy Positioning: to incite purchases Claim: A new store Target: The population around the store Tone: Excessive, comic Catchphrase: "Le 20 février, Ikéa ouvre à Nantes Signature: "Abusez" Trop de meubles 2002 Leagas Delaney Paris Centre Creative strategy Positioning: Ikea proposes furniture with quality and low prices Claim: effective solutions, with functional furniture Target: globally 18/35 and, urbans and a large public Tone: Humor, complicity with the target. [...]
[...] - The IKEA catalogue is the main marketing tool, with around 70% of the annual marketing budget being spent on this alone. - IKEA's advertising, complements the IKEA range, store and catalogue are used to spearhead the penetration of the target market. Balance of autonomy and strategic direction As Ikea continues to expand overseas, the significance of a centralized strategic direction will increase. Naturally, rapid internationalization will trigger a range of challenges imposed on the headquarters in Sweden. Such challenges include: - The complexity of the logistics system will increase; - It will be more difficult to respond to national needs and cultural sensitivity issues; - Franchisees may demand more control over operations; - Emerging demographic trends will force the organization to broaden its focus strategy to respond to varying nation-level consumer groups. [...]
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