IKEA - Essay Example | Topics and Well Written Essays - 2500 words

IKEA - - Essay Example s its distinctive Swedish identity in that all stores are painted in the Swedish national colors of yellow and blue, with small food stores inside where Swedish food can be purchased. Supervised play areas and baby care rooms make it an attractive store for families to visit. IKEA has an economic impact on the economy of every host country in which it opens its stores, because it provides a large number of jobs. It also operates in a socially responsible manner. Its policy towards its suppliers and its focus on the development of low cost products through excellent integration of its design, supplier network, production and customer service has contributed to its economic success, making Kamprad the richest man in the world. IKEA came into being in 1943, when its founder Ingvar Kamprad was 17 years old and received a gift from his father for performing well in his studies. The young Kamprad used this gift to found a business and named it IKEA using his initials, Elmtaryd and Agunnaryd – the names of the farm and the village where he grew up (Solomon, 1991). The business started off by selling matches, because Ingvar discovered that he could buy matches in bulk from Stockholm and sell them individually at a low price to customers while still making a profit. He also sold a variety of miscellaneous items such as pens, watches, jewellery and other products which he was able to procure and sell at a reduced price. He made these sales initially to neighbors by moving around on his bicycle. Later, he advertised in local papers and brought his products to the attention of his customers through a mail order catalog. For distribution of his products throughout the country, he used the county milk van to d eliver the products to the nearby train station.(www.ikea.com). Kamprad introduced furniture into his line of products in 1947. The furniture was manufactured by local manufacturers, using the wood growing close to Kamprad’s home, and the product sold well. Since he