I am reviewing the market mix for IKEA furniture, which is one of the largest furniture companies in the world.
The IKEA Origin and Heritage
The values and culture of Inter IKEA Group reflect the entrepreneurial spirit of our founder Ingvar Kamprad. Our values have its roots in the Småland region of Sweden, where Ingvar Kamprad was born and grew up. It is a stony and rather rugged landscape where the inhabitants often were forced to get by on small means and make use of the scarce resources at their disposal. Smålanders have a reputation for being thrifty and innovative with a straightforward, no-nonsense approach to problem-solving in general and to business challenges in particular. This ‘Småland legacy’ is built into the IKEA culture and values, all over the world.
In the practical business world of today this means that IKEA values encourage a constant desire for renewal and a willingness to make changes, as well as a cost-conscious mindset applied in all areas of operations. They also imply a willingness to try solutions other than the conventional ones and daring to be different while maintaining practical connections with the day-to-day activities. Humbleness in approaching our task and simplicity in our way of doing things are also cornerstones in the IKEA culture.
The IKEA spirit is based on a belief that no method is more effective than a good example. We believe that each co-worker is important, that all of us have a responsibility, and that it is by working ‘together’, tillsammans in Swedish, that we really make a difference.
The IKEA values have proven to be viable in an international context and we strongly believe that they are one of the most important factors behind our achievements. By keeping them alive and well-rooted, it will help us continue to turn future challenges into opportunities.
Most things still remain to be done.
The Mission and Vision Statement:
To create a better everyday life for the many people.
IKEA continues to grow and expand due to its approach to everyday life and keeping not only the customers in mind, but also the environment around us. To cut down on the amount of carbon monoxide in the atmosphere, IKEA ships its furniture in what is known as flat packs.
Good design should be available for the many, not the few. That’s why all IKEA designers design every IKEA product starting with a functional need and a price. Then they use their creativity and knowledge and use low-cost raw materials and manufacturing processes to create functional products. Then large volumes are purchased to push prices down even further.
Most IKEA products are also designed to be transported in flat packs and assembled at the customer’s home. This also lowers the price by minimising transportation and storage costs. By doing all this, the IKEA Concept uses design to make sure that IKEA products can be bought and enjoyed by as many people as possible.
To create a better everyday life for the many people we need to make IKEA products available to more and more people around the world. The franchising business model lets us expand the business of new and existing IKEA retailers, develop franchise operations in new regions and reach more of the many people. Read more about franchising the IKEA way here.
Protect the IKEA Concept
internal threats. For example, we protect the IKEA Concept through legal protection. We also work to ensure that the IKEA Concept stays unique and ahead of competition. And, maybe most importantly, we try to ensure that every one of us working under the IKEA trademarks always live IKEA values. Read more about IKEA values here.
Product for a better everyday life
Low prices with meaning
Low prices are only valuable if they offer good function, quality and design. IKEA product development teams constantly ask themselves – does this product contribute to a better everyday life? Does it have a good, sustainable design? Is the function and quality suited for everyday life? And most crucial – is the price low enough to make this product accessible to many, not just the few?
Maximising production possibilities
The IKEA product development teams travel the world and travel their clever minds to find new solutions that let us keep the good design, function and quality while lowering the price.