IKEA Managing Cultural Diversity P
IKEA: Managing Cultural Diversity
P. Grol, C. Schoch, and CPA
After firmly attaining leadership within Sweden, where it holds more than 20 percent of the overall market, IKEA has succeeded over the last 25 years in doing what 110 furniture distributor has ever attempted: to become a global player in an industry formerly considered by na¬ture to be local.
Today IKEA delivers low-priced quality furniture to key markets throughout the world. It is the only distributor in its field to have successfully established itself in all parts of Europe, including south¬ern and eastern Europe, and more notably in North America, includ¬ing the USA. It has stores today in the Middle East, Singapore, and Hong Kong and is preparing to enter the Chinese market some time in the early part of the next century. Recently Ingvar Kamprad, the company’s founder, secured his position in Europe with the acquisi¬tion of British-based Habitat, IKEA’S chief rival in the UK and France.
To provide some idea of its worldwide presence, IKEA receives annually over 120 million visitors in its 125 stores, and distributes 35 million catalogs. Its sales revenues increased steadily over the last 10 years by an average of 12 percent annually, in spite of the flattening out of its business in Western Europe which still represents nearly 80 percent of its annual volume (see exhibit 7.1).
Ingvar Kamprad’s stubborn insistence that people would buy more furniture if the price was low enough and the furniture was of decent quality, with no delays in delivery has gradually revolutionized the conservative national furniture markets in Europe and beyond.
The IKEA Case was written by P. Grol and C. Schoch under the supervision of the CPA (Centre de Perfectionnement aux Affaires), Paris, France (Paris Chamber of Commerce and Industry). Not to be used or reproduced without written permission from the CPA.
Copyright (R) 1997 CPA. Reprinted by permission.
IKEA
Kamprad intuitively anticipated the rise of
P. Grol, C. Schoch, and CPA
After firmly attaining leadership within Sweden, where it holds more than 20 percent of the overall market, IKEA has succeeded over the last 25 years in doing what 110 furniture distributor has ever attempted: to become a global player in an industry formerly considered by na¬ture to be local.
Today IKEA delivers low-priced quality furniture to key markets throughout the world. It is the only distributor in its field to have successfully established itself in all parts of Europe, including south¬ern and eastern Europe, and more notably in North America, includ¬ing the USA. It has stores today in the Middle East, Singapore, and Hong Kong and is preparing to enter the Chinese market some time in the early part of the next century. Recently Ingvar Kamprad, the company’s founder, secured his position in Europe with the acquisi¬tion of British-based Habitat, IKEA’S chief rival in the UK and France.
To provide some idea of its worldwide presence, IKEA receives annually over 120 million visitors in its 125 stores, and distributes 35 million catalogs. Its sales revenues increased steadily over the last 10 years by an average of 12 percent annually, in spite of the flattening out of its business in Western Europe which still represents nearly 80 percent of its annual volume (see exhibit 7.1).
Ingvar Kamprad’s stubborn insistence that people would buy more furniture if the price was low enough and the furniture was of decent quality, with no delays in delivery has gradually revolutionized the conservative national furniture markets in Europe and beyond.
The IKEA Case was written by P. Grol and C. Schoch under the supervision of the CPA (Centre de Perfectionnement aux Affaires), Paris, France (Paris Chamber of Commerce and Industry). Not to be used or reproduced without written permission from the CPA.
Copyright (R) 1997 CPA. Reprinted by permission.
IKEA
Kamprad intuitively anticipated the rise of