I have chosen IKEA to do a business research on for several reasons, partly for Ingmar Kampvard’s spectacular and successful story, as well as for the company’s unique and simple idea that has led Ikea into even more success.
Ingmar Kampvard’s successful history has always given me the motivation and inspiration. Kampvard has succeeded in creating and operating the business that led IKEA to what it is about now. Ikea is now obtains more than 15 billion British Pounds (Lucy Ballinger, 2008, Dailymail).
Earlier in his age, he went around as a five years old selling matches in the Småland farm Älmtaryd in Agunnaryds parish in Ljungby municipality in Kronoberg County (Lucy Ballinger, 2008 Dailymail).
Kampvard was 17 years old when he founded Ikea in 1943. The name comes from his first and last name I for Ingvar, K for Kamprad and E for the family farm Älmatyrd where he grew up, A for Agunnaryd, his homeaby. He started producing furniture in 1948, but IKEA’s first department store was opened in 1958 in Älmhult, Sweden. IKEA’s head office is located in the Netherlands (IKEA 2010).
With 300 department stores in 36 countries, IKEA is now one of the world’s largest furniture industries and one of the largest leading brand in the world. IKEA currently has more than 154,000 employees worldwide (IKEA, 2012) 42 distribution center, 1000 suppliers that create 10,000 item product line. Ikea is a home product retailer where the industries are spread internationally. Ikea is privately owned and sells furniture, bathroom and kitchen items and accessories in flat packs. Ikea’s unique concept for the furniture sold in flat packaging, affordable prices and home installation of the customer was one of the reasons for the company’s success.
The management of various stores is IKEA’s responsibility. INGKA Holding is a private Dutch company owned by the Stichtting INGKA Foundation, founded in 1982 in the Netherlands as a tax-free basic fund. The design and manufacture of its furniture, purchasing and delivery functions are supervised by INGKA. In 36 countries, 2235 stores are run by INGKA Holding, while the remaining 30 stores are operated by the Frachise. The INGKA Foundation is governed by a member of five members organised by Kamprad and