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 employee turnover of 14 1/2 billion Swedish Kronor (US $1 ? SKr 6 in 1988) and 75 outlets in 19 countries, IKEA had become the worlds largest home furnishings retailer. As the company approached the 1990s, however, its man successionrs go rough a number of major challenges. Changes in demographics were causing some to examen IKEAs historical product line policy. Others wondered if the company had not bitten Cimmerian too much by attempting major new merchandise place entries simultaneously in two European countries (U.K. and Italy), the unite States, and several(prenominal) Eastern Bloc countries. Finally, thither was widespread concern about the prox of the company without its imbeder, strategic architect, and cultural guru, Ingvar Kamprad. IKEA Background and memoir tC In 1989, piece of furniture retailing oecumenical was still largely a staccato national pains 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 divorced country. IKEA, however, had repeatedly bucked market trends and industry norms.

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

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