Brief Background Of Ikea And Its Environment Essay examples

Brief Background Of Ikea And Its Environment Essay examples

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Brief background of Ikea and its environment

A young Sweden entrepreneur Ingvar Kamprad founded IKEA in 1943. With the age of 17, Kamprad turned his business into a mail order operation selling a variety of household products, particularly furniture. Kamprad with his strong entrepreneurship started the first IKEA showroom/store in 1953 in Sweden.

IKEA main strategy was to design functional furniture that was easy and inexpensive to build, receive it disassembled at stores, and display it on the show room floor with detailed explanation ticket to abolish traditional salesperson assistance. Staffs were available for enquiries, but the customers could freely select between orders, pick up, transport and assemble their own selections. In fact, this strategy creates a mutual beneficial between Ikea and customer. Ikea contributed the savings from self-service practice to offer cheaper price to the customer (Inter IKEA Systems B.V., 2013).

The IKEA vision encompassed Kamprad’s desires to integrate social value into business practice. The company believes what is good for the customer will bring back prosperity for IKEA in the long run. Thus, the vision of the company is offering well-designed furniture; at lower price that majority of people can afford it. Now, IKEA is a world renowned furnishing company reputed for selling Scandinavian-style furniture and other home-based goods. The company has 315 stores, with operations carried out in over 27 countries with well over 135 000 employees (Ikea, 2014). The stores themselves can host 716 million shoppers per year (Ikea, 2014).


For years, committed workforce has been one of the main strengths of Ikea through its Innovative human management practice. Duncan (2001) asserte...

... middle of paper ...

...ractice is one of the factors contributed to the unique culture of IKEA. Also, the unique values such as the cost consciousness had lead to the success of IKEA up to today. This culture apparently created competitive advantage for IKEA to compete in the competitive furnishing market. Last but not least, the author would suggests IKEA to adapt its culture of constant renewal which mean constant accepting new idea but remain its primary value of cost consciousness in order to continue its success as the leader in the industry.

Edvardsson, B., Enquist, B. & Hay, M. (2006). Values-based service brands: narratives from IKEA. Managing Service Quality: An International Journal, 16 (3), 230-246. Doi:

Reynolds, J. (1988). IKEA. Retail and Distribution Management, 16(3), 32-34. Doi:

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