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Dahlia Bao

Rebecca Siegert

Professional Writing

10th February’10

IKEA

IKEA’s History

IKEA is the abbreviation of Ingvar Kamprad Elmtaryd Agunnaryd and the company was

founded by Ingvar Kamprad in Almhult, Smaland, Sweden in the year 1943. Kamprad was only

a boy of 17 when he decided to sell different products. IKEA is an international based company;

it is owned by the Dutch registered foundation which is under the control of the Kamprad family.

The headquarters of the company are located Delft, South Holland, the Netherlands.

The history of IKEA goes back six decades; it all began with a boy called Ingvar

Kamprad who wanted to create his own business.

 1920s: it started with Ingvar Kampard selling matches to his neighbors at the age of five.

By the age of seven he realized the fact that he can sell matches outside his neighborhood

if he used his bicycle. Slowly and gradually he started to sell flower seeds, cards,

decorations for the Christmas tree and later on pencils and pens (ball points). Thus began

his journey of creating IKEA. (IKEA, 2010)

 1940s – 1950s: in the year 1943 IKEA was founded by Ingvar Kampard after his initials

and the area where he lived in. In the 1948 furniture was introduced in the product range

of IKEA. In 1951 IKEA is able to introduce its first catalog. The first IKEA showroom is

opened in Almhult, Sweden in 1953. In 1956 IKEA is able to create and design flat pack
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and self assembly products. In 1958 IKEA is able to open its first outlet in Sweden. And

finally in the 1959 IKEA had employed 100 employees.

 1960s – 1970s: in 1961 IKEA introduced the OGLA chair and in that year IKEA decided

to test its products before selling it to its customers. In the 1963, IKEAS opens its first

international store in Norway. In 1965 IKEA opens its first largest store in Stockholm. In

1969 the PRIVAT sofa is introduced with the Ake Fribryter. In 1969, IKEA opens its

outlet in Denmark, in 1973 opens one in Switzerland, in 1974 opens one in Denmark, in

1975 opens one in Australia, in 1976 opens one in Canada, in 1977 opens one in Austria

and 1979 opens one in the Netherlands.

 1980s: in the year 1981 IKEA opens one of its outlets in France, in 1984 opens one in

Belgium, in 1985 opens one in USA, in 1987 opens one in UK and in 1989 in Italy. In

1986 Kampard retires and B.V. Anders Moberg became the new CEO of the IKEA group

and the president. In the year 1985 IKEA had opened somewhere around 60 outlets and

had employed 10,000 workers. (IKEA, 2010)

 1990s: in the 1993 IKEA decides to become the member of the global forest certification

organization i.e. Forest Stewardship Council (FSC). In the year 1997 IKEA launches

itself in the internet and that same year it introduced Children’s IKEA, a line of children

products. In 1998 IKEA opens its outlet in China. And in the year 1999 Anders Dahlvig

became the new CEO and the President of the company and it also wins an award for

VARDE Kitchen.

 2000s: in the beginning of the new century IKEA opens its store in Russia and that same

year IKEA launches a code of conduct and finally the customers were able to shop

online. In 2001 IKEA introduces a new and innovative product using the print-on-board
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technique and it also moves it head office to the Netherlands. In the year 2003 ILEA

launched its fourth IKEA PS collection in the market. In 2004 IKEA is able to open its

200th store in New Haven, USA. In 2006 IKEA opens its first outlet in Japan. (IKEA,

2010)

Current Status of IKEA

The current CEO (President) of IKEA is Mikael Olhsson and the President of the Inter

IKEA Group is Hans Gydell. There are 123,456 employees that work for IKEA all over the

globe. The motto of IKEA is that, it wants to create a better life for people around the world with

their products and to sell their furniture and other products at an affordable price range. The

market share of IKEA is as follows. (The Ultimate IKEA Review, 2006)

Market Share
15% 25%

IKEA
Other
B&Q

60%
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In the following graph the researcher will be able to see the steady pace of the company;

as it is growing in its perspective market. (IKEA, 2010)

Turnover In Million
22498 22713
20685

17658
15212
13570

4396

1216
1 25 169
1954 1964 1974 1984 1994 2004 2005 2006 2007 2008 2009

Product – Furniture

IKEA has somewhere around 9500 products in their entire product ranges. All of the

IKEA retail outlets carry all their furniture product ranges, but mostly it depends on the size of

the retail outlet that how many ranges (furniture products) it can carry. But all the retail outlets

do carry the core range (furniture products like bedroom furniture, dining room furniture etc.) of

the company. (Meier, 2010)

It was in the year 1948 when IKEA decided to introduce furniture in their range of

products. The furniture was being produced by the local manufactures near the forest that was

closest to Ingvar Kamprad’s home in Sweden (i.e. the forest was very near the shops of the

manufacturers who were into making furniture products). The response to the IKEA furniture

was a positive one, thus it became an important product of the company over the times.
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Kamprad started selling the furniture products out of his home and then he decided to use

mail order to deliver the products to his customers’ homes all over the country. In the year 1951

Kamprad saw an opportunity to sell the products through a catalog. The IKEA catalog which we

now know today of was introduced to the world in that year. The first IKEA showroom was

opened in Almhult, Sweden in the year 1953. This outlet had 6700 sq meters of home furnishings

displayed in that store and that was the largest display center of furniture in the Scandinavia at

that time. In 1963 IKEA had opened its first international outlet in Oslo, Norway.

In 1952 the concept of flat packing of furniture took place and when one of the

employees of the company took off a table’s leg so that it would not be damaged in the delivery

process and so that it would be able fit in the car. After discovering this, the flat packs and self

assembly products were included in the IKEA’s range of furniture products and they became an

instant hit with all the customers. (Meier, 2010)

The products of IKEA are known for their modern and utilitarian designs. The products

of IKEA are designed in such a way that they can even be assembled by the customer him or

herself, rather than them buying the pre-assembled version of the product. The furniture products

are identified by a single word, and most of the furniture products are named in Swedish.

For example, Swedish place-names like Klippan would include coffee tables, doorknobs,

media storages, upholstered furniture and bookshelves etc. The Norwegian place-names would

include different kinds of beds, wardrobes and hall furniture etc. Furniture that has been given

Finnish place-names includes different kinds of dining tables and chairs etc. Occupation would

include bookcase ranges. (Meier, 2010)

Work Cited Page

Craven, D.W. Strategic Marketing. McGraw-Hill, 2000

Market Share. 2007. 10 February 2010 < http://www.quickmba.com/marketing/market-share/>

Meier, J. Assemble It Yourself IKEA Furniture. 2010. 10 February 2010

The Ultimate IKEA Review. 2006. 10 February 2010