Ikea

Capell, Kerry. "Ikea, How the Swedish Retailer Became a Global Cult Brand," Business Week. Novemeber 14, 2005. pp. 96-101.

Summary

Swedish Retailer, Ikea, has created a global brand focused on low prices and contemporary designs. The stores founder, Ingvar Kamprad, started the company when he was just 17 years old in 1943 selling pens, cards, and seeds from his family farm in Sweden. The article compares him to Sam Walton (founder of Wal-Mart), and explains his credo of creating “a better life for many.” Kampard believes that wasting resources is a “mortal sin” and it is the company’s duty to expand. The founder also believes and practices throughout the company egalitarianism. “Ikea regularly stages Anti-bureaucracy Week, during which executives work on the shop floor or tend to registers.”

The brand Ikea has become iconic in consumers minds. CEO, Anders Dahlvig, states “the awareness of our brand is much bigger than the size of our company.” The company represents what is “in” throughout the world. Customers are comfortable with each purchase they make because they know they are around like-minded people who are cost, design, and environmentally conscious. 

New Ikea stores are being built around the world and at each of the store openings there are wacky promotions. For example, at a recent Atlanta store opening, the company offered a $4,000 gift certificate for the first person in line. The man who won the contest camped outside in the boiling heat of summer for seven days. Another store opened in Saudi Arabia and promised store vouchers for the first 50 shoppers. Two people died and 16 people were injured in the mayhem. 

Outside of the crazy promotions, what keeps customers coming back, besides the low prices and hot products, is the store design. Shopping in Ikea is a fun experience not a chore. The store is shaped in a circle so customers will not miss anything if they walk in one direction. The aisles are wide and there are fully accessorized...