Do you know what is IKEA? Are you familiar with that word? I think some of you may know about IKEA. Others don’t worry I will help you to know about it and more.
IKEA is a multinational retail company specializing in furniture which offers a wide range of home furnishings with good design and function at low prices. It is a business model mainly targeting the common people. IKEA presenting modernized dream home for poor people with affordable capital.
IKEA- The Founder
Ingvar Kamprad is the founder of IKEA. Actually, IKEA stands for Ingvar Kamprad Elmtaryd Agunnaryd where first two letters are an acronym for the founder and the third letter is his farm name and the last is his village name. He founded IKEA in 1943 as a mostly mail-order sales business. The reason behind the IKEA foundation is, from his childhood onwards his great wish to develop a business as his own. Different events during his past gave him a powerful initiative to create his own resources and to be independent.
Through his continuous hard work and willpower, he became an entrepreneur at the age of 17. Actually, IKEA business model is to build new stores on cheap land at remote locations. Buying essential materials at discount rate and convert the whole concept of ‘do it yourself ‘form. In this way, IKEA has created enormous retail chain about 400 stores across 49 countries and also about €38.3 billion ($47 billion) of sales.
The main vision of IKEA is to build a better everyday life for the many people. IKEA business idea supports this vision by extending a collection of well-designed, functional home furnishing products at the low capital that as many poor people as possible will be able to afford them and have a beautifully furnished home like rich ones. Actually, they make common man home and life more colorful and exclusive – where dreams become a reality.
The backbone of every business is the ‘capital’ and its existence completely depends on the acceptance of customers. Vision and values of IKEA build its mission. The mission is to invest more money in existing and new stores for the sustainable growth of the company which gives more benefits to its employees ,customers and suppliers at lower prices . Customers get good quality goods without giving much pressure to their income. IKEA always with people and helps the poor people to experience the rich man living with their low budget.
The branches of IKEA expanding to every corner of the world day by day. Now IKEA is going to build a new store firstly in India, on a 10-acre site in the IT hub of Hyderabad, is nearing completion. They planning to build a chain of 25 stores with an approximate budget of Rs. 10,500 crore in India and employs about 15,000 workers. To succeed today ( this online world) IKEA planning to invest more technology like an augmented reality app that lets customers move more to reality. For example, they can visualize what IKEA products will look like in their own homes, before buying the products.
IKEA has a website named IKEA FAMILY. It is a loyalty program designed for people and provides products with discounts, special offers, ideas and inspiration, and more… in addition to this free to join facility help to easily catch customers attention.
The growth of IKEA is out of our imagination. At age of 32, it’s still developing and sourcing a number of products for global operations. It gives a new opening for people especially who living in low level by providing products at low price. The main aim of IKEA is the customer satisfaction and more than that they giving value to their happiness. That makes IKEA different from other multinational retail companies.