Ikea Case Study

IKEA Case Study by Sepideh Hajizadeh

IKEA’S SUPPLY CHAIN MANAGEMENT

IKEA is a Swedish company registered in the Netherlands that designs and sells ready-to-assemble furniture (such

as beds, chairs, and desks), appliances, and home accessories. As of January 2008, the company is the world's

largest furniture retailer. Founded in Sweden by a 17-year-old Ingvar Kamprad, who is one of the world's richest

people in 2013, the company's name is an acronym that consists of the initials of Ingvar Kamprad, Elmtaryd (the

farm where he grew up), and Agunnaryd (his hometown in Småland, south Sweden).

IKEA’s vision, values and goals

Ingvar Kamprad established IKEA in 1943. The business concept was defined as producing furniture to low prices,

and since 1956, flat packages was a core part of the concept. IKEA’s concept has grown gradually since then, both

nationally and internationally, by a trial and error process. The ambition has been to build a company that looks

the same everywhere. In 1976, Ingvar Kamprad launched the document. The Testament of a Furniture Dealer, A

Little ΙΚΕΑ Dictionary, (Kamprad 1976-2007) which describes the IKEA concept and defines its corporate vision

(Kamprad 1976–2007).

IKEA’s vision is to “create a better everyday life for the many people” (IKEA 2010 p.5), by offering a broad

assortment of affordable and functional home furnishing products and solutions. In 1996, the testament was

added with A Little ΙΚΕΑ Dictionary, with selected words expressing IKEA values (Kamprad 1976-2007). In this

dictionary, we find words such as “humbleness” (which in the text is linked to other words such as respect,

sincerity, admitting your mistakes, listening to others), “willpower” (including both agreeing on goals and then

achieving them), “simplicity” (which refers to efficiency, common sense, and natural), “the many people” (which...