IKEA is the world's largest furniture retailer. Every year, the network of stores is visited by over 800 million people. So far IKEA has 378 stores in 47 countries around the world. This makes it the largest furniture manufacturer in the world.
It combines 42 distribution centres located in 18 countries with more than 1,000 suppliers from 55 countries. Last year 198 million copies of the IKEA’s catalogue were printed in 56 editions and 27 languages.
The main objectives of the business? Provide a nice, functional, modern and affordable furniture.
The founder of IKEA was Ingvar Kamprad. He was born in the south of Sweden and raised on a farm called Elmataryd near a small village named Agunnaryd. From the first years of his life knew…show more content… The name IKEA was formed from the founder's initials (I.K.) plus the first letters of Elmtaryd (E) and Agunnaryd (A), the farm and village where he grew up. IKEA originally was selling pens, watches, jewellery, wallets, table runners, picture frames and nylon…show more content… Six years later the first IKEA catalogue is published and at that time the founder chooses to discontinue all of the other products and focus directly on low-price furniture, which is produced by local manufacturers and the IKEA that we know today was born.
In 1953, the furniture showroom is open in Almhult. This was an important moment in the development of the IKEA concept. For the first time costumers could see the products and touch them before the purchase. The showroom was a side effect of a price war with a main competitor of IKEA. As both companies lowered prices, quality was threatened. By opening the showroom, IKEA proved the quality functionality of its low-price products.
Going beyond the competitors
However, it was not so easy to maintain successful. After opening its first store, competing companies quickly realize that IKEA takes their customers. Therefore, the Swedish furniture retailers urge other companies to boycott the Kamprad’s company. They send out to manufacturers and suppliers list of threatened withdrawal orders if they deliver or transport the IKEA furniture. Frightened factory withdraws their contracts with IKEA, leaving the Swede high and dry. That boycott almost destroyed his career. It was his stubbornness and series of lucky coincidences, which helped him not only survive on the furniture market but also