Ingvar Kamprad And Ikea Essay

4191 words - 17 pages

nTable of contentsIntroductionPage 1Assignments1. Sources of successPage 22. InternationalisationPage 43. management process's Page 64. Ingvar Kamprad's rolePage 75. Challenges aheadPage 86. course of action MobergPage 9Additional informationIKEA nowadaysPage 10ConclusionPage 11AppendicesAppendix 1 all IKEA store'sPage 12IntroductionIn these assignments we are examining one of the largest multinationals in the world; IKEA.Certain aspects concerning IKEA will be discussed and amplified such as what enabled a Swedish retailer who solely used his line of ideas to expand world wide and become such a success. What were the contributions of Ingvar Kamprad to the mayor achievements of the organisation? What challenges lay ahead for IKEA and how should their strategies be adjusted to their current goals.IKEA nowadays is company which is represented all over the world and has approximately 186 stores in 33 countries and are still seeking new opportunities to conquer new markets.The 6 specific questions that shall be answered and shall be clarified are:1.What are the sources of Ikea's success full entry in the furniture retailing business in Sweden?2.How important was internationalisation to IKEA? What challenges did IKEA face while expanding internationally, and how did it overcome them?3.What where the management processes by which IKEA coordinated and controlled its Europe-wide operations?4.What was Ingvar Kamprad's role in Ikea's development?5.What challenges lie ahead for IKEA?6.What course of action should Moberg follow in order to deal with them?1. Sources of successIKEA is the most successful furniture company conducting business worldwide, what are the main factors for Ikea to become such a success full organisation.DifferentiationThe main issue that makes IKEA so successful is that they took the ability to differentiate from the current competitors on the market. Ingvar Kamprad had a completely different strategy and vision in mind than the other companies on the furniture market at that time.A different Price, a different target group, a different store, a different location, a different distribution channel and a self service concept, all focused on the consumers. To make products of good quality that are affordable for the average consumer. He cared more about improving quality of life and that was what Ikea reflected to the customersPriceWhen the company entered the furniture market in Sweden in the beginning of the 50's the furniture prices where rising enormously and only a small part of the population was able to buy the qualitative furniture products. IKEA's strategy was to change this situation, to offer a wide range of home furnishing items of good design and function at low prices so that the majority of people can afford to buy them. They had a completely different approach by selling at the lowest possible price and in despite of that still providing good quality products.The other companies on the furniture market saw a great danger...

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