IKEA history: how Ingvar Kamprad built one of the largest retail chains in the world
Ingvar Kamprad
ikea at the beginning
Expanding business
Ikea formula
Ikea at the moment
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IKEA history: how Ingvar Kamprad built one of the largest retail chains in the world

1. IKEA history: how Ingvar Kamprad built one of the largest retail chains in the world

IKEA HISTORY: HOW
INGVAR KAMPRAD BUILT
ONE OF THE LARGEST
RETAIL CHAINS IN THE
WORLD
Shenmaer
Alena

2. Ingvar Kamprad

INGVAR KAMPRAD
Fu r n i t ur e i s a n i m p o r t a n t p a r t o f c r e a t i n g h o m e c o m fo r t , a n d
i t m ay s e e m s t r a n g e t h a t a t t h e b e g i n ni n g o f t h e 2 0 t h
c e n t ur y, ev e n i n d ev e l o p e d c o u n t r i e s , m a ny c o ul d n o t a f f o r d
to b u y i t . G o o d f u r ni t ur e w a s q u i te ex p e n s i v e, a n d i t c o ul d b e
b o u g h t b y w e a l t hy p e o p l e , t h e r e s t w e r e c o n te n t w i t h w h a t
t h ey h a d o r d i d w i t h t h e i r o w n h a n d s .
Yo u n g S w e d i s h e n t r e p r e n e ur I n g v a r K a m p r a d , w h o b e c a m e
i n te r e s te d i n t h e f u r ni t ur e b u s i n e s s b a c k i n 1 9 4 8 , r a n i n to
s u c h c i rc um s t a n c e s . M o s t l i ke l y, h e c o ul d n o t ev e n t h i n k t h a t
t h i s i d e a w o u l d a l l ow h i m to ev e n t u a l l y c r e a te a w o r l d - f am o us
b r a n d w i t h a t u r nov e r o f m o r e t h a n $ 3 0 b i l l i o n .

3. ikea at the beginning

IKEA AT THE BEGINNING
B y 17 ye a r s , K a m p r a d s av e d a g o o d a m o u n t , a f te r w h i c h h e
b o r rowe d m o n ey f r o m h i s f a t h e r a n d o p e n e d h i s c o m p a ny. I K E A
i s a n a b b r ev i a t i o n c o m p o s e d o f t h e f i r s t l et te r s o f t h e f i r s t a n d
l a s t n a m e o f t h e e n t r e p r en e ur a n d t h e n a m e s o f t h e f a r m a n d
v i l l a g e w h e r e h e g r ew u p . I t w a s 1 9 4 3 , w a r t h u n d e r e d a l l o v e r
t h e w o r l d , w h i c h , f o r t un a te l y, h a r d l y to uc h e d S w e d e n . A t f i r s t ,
I n g v a r e s t a b l is h e d t r a d e i n e s s e n t i al s . T h e f i r s t m o d el o f w o r k
w a s t h e m a i l i n g l i s t o f g o o d s . T h e yo u n g e n t r e p r e n e ur w a s
f o r c e d to c o m b i n e w o r k a n d s t u d y a t t h e G et te r b e r g
c o m m e rc ia l s c h o o l, i n w h i c h , h e s ay s , h e l e a r n e d a l o t .

4. Expanding business

EXPANDING BUSINESS
I n 1 9 4 8 , K a m p r a d w a s t h i n k i n g a b o u t ex p a n d i n g
h i s b u s i n e s s . I t d aw n e d o n h i m : f u r ni t ur e i s w h a t
ev e r yo n e u s e s i n o n e w ay o r a n o t h e r. T h e
p r o b l em i s t h a t i t w a s t h e n q u i te ex p e n s i ve , a n d
i n o r d e r to m a ke m o n ey, i t w a s n e c e s s a r y to
m a ke t h i s p r o d uc t p u b l i cl y av a i l a b l e . A c c o r d i n g
to I n g v a r h i m s e l f , t h e f i n a l a r g um e n t i n f av o r o f
w o r k i n g i n t h i s d i r ec t i o n w a s t h a t h i s c o m p et i to r s
a l s o t r i e d to d o t h i s . I n t h e s a m e ye a r, I K E A i s
ex p a n d i n g : t h e h e a d o f t h e c o m p a ny, h e i s t h e
o n l y e m p l oye e , d e s p e r a te to w o r k i n s o m a ny
d i r ec t i o n s o n h i s o w n , f i n a l l y h i r e d t h e f i r s t
e m p l oye e . B y 1 9 5 0 , t h e c o m p a ny h a d a l r e a d y
e m p l oye d f o u r p e o p l e.

5. Ikea formula

IKEA FORMULA
K a m p r a d s p e n t a l l h i s t i m e t r y i n g to f i n d c h e a p
f u r n i t ur e - a t f i r s t i t w a s a v a r i et y o f s m a l l - s c a l e
p r o d uc t i o n , w h i c h c o u l d n o t w i n a h i g h p r i c e . I t s
c o m p et i to r s a l s o t r i e d to r e d u c e t h e c o s t , b u t
c o ul d n o t o f fe r t h e s a m e p r i c e s a s I K E A . O v e r
t i m e , I n g v a r ' s a p p r o ac h c h a n g e d , a n d i n s te a d o f
s e l l i n g f u r n i t ur e , h e b e g a n to b u y i n d i v i d ual
parts and assemble them in his own small
f a c to r y, w h i c h f u r t h e r r e d u c e d p r i c e s . T h e n t h e
f a m o us K a m p r a d f o r m ula a p p e a r e d - i t i s b et te r
to s e l l 6 0 0 c h a i r s a t a l o w p r i c e t h a n 6 0 f o r b i g
m o n ey.

6. Ikea at the moment

IKEA AT THE MOMENT
A t t h e m o m e n t , I K E A i s o n e o f t h e l a r g es t b r a n d s i n t h e
w o r l d . T h e c o m p a ny ' s p o s i t i o n i n t h e i n te r n a t i o n a l
m a r ket l o o k s a l m o s t u n s h a ka b l e . T h r o ug h o ut i t s h i s to r y,
I K E A h a s b e e n a b l e to w i t h s t a n d f i e r c e c o m p et it i o n ,
world crises and scandals. The ideology of the brand can
s e r v e a s a n ex c e l le n t ex a m p l e o f h o w to b u i l d a
c o r p o r a te c u l t ur e .
W i t h o ut a d o u b t , i t s f o u n d e r p l aye d a m a j o r r o l e i n t h e
d ev e l o p me n t o f I K E A . A f te r a l l , h e w a s a b l e to c r e a te a
c o m p a ny f r o m s c r a t c h t h a t c a n w i t h s t a n d a ny c h a n g e s .
T h e a c t s o f I n g v a r K a m p r a d c a n s e r v e a s a n ex c el l e n t
ex a m p le o f h o w to w o r k to m a ke yo ur d r e a m a r e a l i t y.
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