IKEA: Ingvar Kamprad's Visionary Journey

Introduction

In 1943, Ingvar Kamprad who was born and raised in Stockholm, Sweden founded IKEA from cash gifts he received from his father. The letters I and K were derived from his initials, and the letters E and A were derived from the place where he was raised. Hence his decision to name the store, IKEA. The store sold a variety of items such as wallets, picture frames, watches and jewelry. Essentially, the store was founded to provide whatever the needs of his customers.

Initially Kamprad clients were established through phone calls to individual customers. To increase IKEA 's client base, Kamprad decided to channel his advertisement through local news and also send out flyers to customers of products sold by the store. A couple of years

IKEA conceptualizes and assembles goods and products that are designed to be practical, while at the same time possess tasteful designs and accessible at a low cost (IKEA, 2016). IKEA markets itself as a store established for the people, such that they are open to being the people 's companions for an improved life. The positioning testimony of IKEA opens up a partnership with its customers is to arrive at the desired effects perceived by their clients and by the store performing their part in the development. This permits the company to serve the large middle and low income earning groups as they are able to secure furniture affordably. This marketing strategy is called, “merchandise”, the product range and the prices of the products (Waller, 2014). This results to a cost-effective technique of providing for the needs of the customer and the price should be the same in every market. As new companies hit the market, several of them try and mirror IKEA. It does not prove beneficial and IKEA manages to keep their competitive edge and advantage over the companies. They are still the strongest retailer in business and vastly growing. The key to their continued success is

The concept of value thus has both a social dimension and an economic dimension. Declared as an excellent company because of this, IKEA’s foundations of value can be evaluated to understand how they meet the wants and needs of its core customers. The customer wants to enjoy the experience of buying products. IKEA provides its customers with an enjoyable buying experience. According to Edvardson and Enquist value-based management is based on stakeholder perspective of leadership, responsibility and ethics incorporated with the concept of a triple bottom line. Three aspects of sustainability form a triple bottom line economic, social and environmental. IKEA has been successful at value-based management and achieving a triple bottom line culture. IKEA asks designers to design to decrease prices not increase them. At IKEA the price is designed according to what all income levels can afford. Designers work on the factory floor with production staff to produce furnishings that satisfy all dimensions (Edvardson & Enquist 2006). IKEA works with its suppliers to achieve cost savings and help create optimal conditions to product efficiency. Furthermore, IKEA works with suppliers on quality, environmental and issues. The basis of selection is a best buy policy. The process encompasses a set of requirements that a likely