IKEA

IKEA Case Analysis



Introduction

IKEA has been very thriving because of the time they spend comprehending their customers. Ingvar Kamprad founded IKEA in 1943 at the age of 17. Ingvar originally traded ballpoints, wallets, image borders, table runners, watches, and jewelry and nylon stockings through IKEA at a decreased price. Ingvar understood that he could purchase goods in bulk at a smaller cost and still sell them cheap while making a profit (Keegan, Green, 2003, pp.19). IKEA's achievement has arrived from the way they offer a wide variety of well conceived furniture products at charges lower than the competitors. By keeping their goods prices low, they have been able to create a large demand for their products. IKEA had a vision, expressed by founder Kamprad that the company should sell a basic product that is "typically Swedish" wherever it goes in the world (Anton, Annie, Earp, Julia, 2000).

Analysis

World IKEA-mania

Main merit of Ingvar Kampar, and he created the company - not that they got beyond the rural shed, which served as a headquarters and warehouse, and have achieved international success. According to experts, IKEA has made a revolution in the consumption of furniture: it has created a simple and elegant design, available to the masses, began to form in the mass culture of the buyer arrangement of dwellings (Lancaster, Massingham, 2003, pp. 16). Through this company people previously never thought of elegance and comfort (after all, it was expensive and inaccessible), had an opportunity to experience these benefits in their own home. IKEA has made a contribution to the development of furniture styles: a severe European modernism 1960 Swedes opposed the subtle, pastoral Scandinavian modernism, and it quickly gained popularity. IKEA furniture captivates through its functionality and rationalism began to enjoy enormous success by-products - vases, lamps, picture frames, rugs, tableware and more (Armitstead, Louise, 2010, pp. 5).

How to Remove the Possibility of Problems

In the early years of the furniture trade Kampar was very difficult to compete with competitors. Business could "choke", but the entrepreneur has found a nonstandard at the time means of attracting customers. In 1953, he opened a pavilion, where people could see a large number of product samples, to ensure their comfort and quality (Lee, Carter, 2005, pp. 64). Soon a different problem: the pressure of competitor's vendors began to boycott IKEA - and in response, the company began to produce their own furniture. Trying to reduce production costs, IKEA came to the idea of flat pack (pack furniture unassembled), it provided tremendous savings. In 1958, opened its first store in the area of 6700 sq. Elmhulte, The largest in Scandinavia, in 1965, in Stockholm, was a shop area of 45,800 square meters. M, the staff struggling to cope with servicing thousands of customers - then IKEA has begun to implement a self-service system (Bartol, Martin, 2003, pp. 12).

Tactics of Soft Compulsion

In one study of Harvard Business School argues that IKEA skillfully leads, gently forcing the buyer to carry out in the store longer (respectively, increasing the amount left ...