Ikea Case Study

Harvard Business School 9-390-132 rP os t Rev. July 22, 1996 Ingvar Kamprad and IKEA op yo With a 1988 upset of 14 1/2 billion Swedish Kronor (US $1 ? SKr 6 in 1988) and 75 outlets in 19 countries, IKEA had bring to pass the worlds largest home furnishings retailer. As the company approached the 1990s, however, its man festerrs go most a number of major challenges. Changes in demographics were causing some to testing IKEAs historical product line policy. Others wondered if the company had not bitten dirty too much by attempting major new marketplace place entries simultaneously in two European countries (U.K. and Italy), the unify States, and several(prenominal) Eastern Bloc countries. Finally, on that point was widespread concern about the prox of the company without its imbeder, strategic architect, and cultural guru, Ingvar Kamprad. IKEA Background and history tC In 1989, piece of furniture retailing world-wide was still large ly a staccato national attention in which small manufacturers and distributors catered to the demands of their local markets. Consumer preferences varied by region, and there were hardly a(prenominal) retailers whose operations extended beyond a individual country. IKEA, however, had repeatedly bucked market trends and industry norms.

Over three and a half decades it had built a highly profitable global network of furniture stores. (See Exhibit 1.) Company Origins No IKEA is an acronym for the initials of the founder, Ingvar Kamprad, his originate Elmtaryd, and his county, Agunnaryd, in Småland , South Sweden. In 1943, at the age of 17, K! amprad began his entrepreneurial career by selling fish, Christmas magazines, and seeds. Within a few years he had established a mail-order melodic phrase featuring products as diverse as ballpoint pens and furniture. It was in furniture, however, that he dictum the greatest opportunity. Do Even as the restrain wartime demand found expression in the post-war boom, the traditional Swedish practice of handing down custom-made...If you compulsion to get a wide of the mark essay, order it on our website: OrderCustomPaper.com

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