IKEA Business Analysis
From a small business started with little investment in the beginning of1960s, IKEA has grown to a multinational generating billions of dollars in revenue with operation in more than 40 countries globally. In its formative years, IKEA initially sold very basic items such as wallets, jewelry, watches and frames among other items which were lowly priced. Though it tries to cope with the economic capability of its consumers, today the company sells home accessories, kitchen appliances, furnishings and ready to assemble furniture among other items. Today, IKEA is the world’s largest furniture retailer with more than 30 franchises to its name all of which can be traced to the first store opened in Almhult, Sweden by the founder Ingvar Kamprad.
The industry structure has in many ways played a critical role in influencing the company’s growth over the years. IKEA’s industry …show more content…
On the other hand, quality does not denote high prices but competitiveness.
• People in the image are the customers who the company relies on to buy the products. There is also the human capital that is vital in running the multinational (Suarez, 2006).
• Technology is the main driver for innovation. Though much of the production is outsourced, the company decides on the design in order to maintain novelty.
• Like in any other investment, infrastructure plays a significant role in determining the profitability of a venture. In line with this, IKEA has heavily invested in its stores, warehouses and production lines which are important in the process.
From IKEA’s history, Kamprad is a practical man who adapts to change easily. In the formative years, he played the role of an active and effective hands-on manager who was actively involved in the day to day running of the company in virtually all areas. Over the years, he has been closely in touch with the employees encouraging and appreciating them personally which greatly influenced their
The industry structure has in many ways played a critical role in influencing the company’s growth over the years. IKEA’s industry …show more content…
On the other hand, quality does not denote high prices but competitiveness.
• People in the image are the customers who the company relies on to buy the products. There is also the human capital that is vital in running the multinational (Suarez, 2006).
• Technology is the main driver for innovation. Though much of the production is outsourced, the company decides on the design in order to maintain novelty.
• Like in any other investment, infrastructure plays a significant role in determining the profitability of a venture. In line with this, IKEA has heavily invested in its stores, warehouses and production lines which are important in the process.
From IKEA’s history, Kamprad is a practical man who adapts to change easily. In the formative years, he played the role of an active and effective hands-on manager who was actively involved in the day to day running of the company in virtually all areas. Over the years, he has been closely in touch with the employees encouraging and appreciating them personally which greatly influenced their