Case Study Of Ikea The World's Biggest Furniture Venders
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A1. The given case study talks about IKEA, the world’s biggest furniture vender. IKEA was founded by Ingvar Kamprad in Sweden.
As a 17 year old boy, Kamprad worked out of the family kitchen, selling goods like fountain pens, cigarette lighters and binders which he purchased from low-priced sources and then advertised these in a newsletter. In 1948, he added furniture to the list of goods and the immediate success of this new item made him give up all the small ones and focus on this one.
Through the years, IKEA expanded and multiplied sales because of certain unique features adopted by Kamprad. Some of these were-
• Opening of a display store in 1951, letting customers inspect products before buying. This principle is still followed by the company as it tempts customers through a catalog to visit its stores, where they can see the interiors, touch the furniture and then place an order.
• Introduction of self-assembled furniture in 1953. Customers could buy flat packages and put them together themselves at home, saving transport and storage costs.
• In order to obtain products from its suppliers at the lowest price possible, IKEA would seek seasonal manufacturers who could manufacture products for it in spare off-season hours.
• In 1965, while opening a store in Stockholm, Kamprad perceived that use of automobiles in Sweden had increased and thus he opted for a suburban location with ample parking space. Customers who visited the store in cars and took home flat packed boxes