IKEA case analysis Essay

Words: 1006
Pages: 5

What was the source of IKEA’s success in Sweden early on (50s and 60s)?
In 1943, IKEA was founded by Ingvar Kamprad at his home town, selling mainly pencils, postcards and other merchandise. From late 40s to early 50s, manufacturing furniture was introduced as a complement to general merchandise. This enabled Kamprad to step in the furniture business and exploring situation and finding new opportunities. The business had gain massive success in the domestic market for the since opening and the key to its achievements is Kamprad’s leadership. He not only had the vision for the furniture industry, market’s situation, and enthusiasm for business, but Kamprad also played an important role in managing the company’s resources, turned it into
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What role did Ingvar Kamprad play in the company’s success?
Being the company founder, Ingvar Kamprad was the one who brought the vision, which was still IKEA’s direction from the beginning until present. With passion and devotion to his own child and the society, Kamprad not only made IKEA become the market leader in furniture retailing industry, but also help improving living quality of the majority of population
Secondly, Kamprad was the manager of IKEA, who operated its business and consolidated the fragmented market, outlined its strategy. His motto was always being simple and that was applied to every aspect of IKEA’s operation, which visible success had been observed. Ingvar was also the leader of IKEA, company’s highest role model and his characteristic also defined IKEA’s image. Kamprad’s motto when it comes to leading was always to be an example for his followers. Motivating his employees was his will; Kamprad showed concerned to employee’s motivation and working condition when the firm’s operating scope got too large, he was not be able to spread his enthusiasm throughout every corner of the company.