Ikea Strategy Draft
IKEA US
Case introduction(1-1.5p)/3p
IKEA Group
History
The IKEA group is a private Dutch-registered company with an origin from Sweden. It is the world’s largest furniture retailer, selling a wide range of Scandinavian-style well-designed, functional home furnishing products at low prices.
Founded in Sweden in 1943 by Ingvar Kampard, IKEA initially sold basic household goods at discount prices; four years later, the company began selling furniture. In 1955, IKEA started designing its own low-priced furniture and in 1958, IKEA’s flagship store opened in Sweden.
In 1960s – 1970s, the IKEA concept started to take shape. IKEA stores arrived outside Sweden and spread to other parts in the world.
From 1980s, IKEA expanded dramatically into new markets such as France, UK, USA, etc. The company began to take the form of today’s modern IKEA. By the end of 2012, there were 338 IKEA stores operating in 40 countries around the world. organisation structure
It is believed that the complex structure of IKEA is designed to protect the Kamprad Family from taxes and to the possibilities of a takeover of IKEA. In fact, the IKEA group is owned and operated by a complicated array of non-profit and for-profit corporations. Kamprad does not technically own IKEA; instead, he controls the company through a holding company.
The company’s structure can be divided into two parts: operations and franchising. Most of IKEA’s operations are owned by the Stichting INGKA Foundation, which is established by the Kamprad family in the Netherlands as a tax-exempted, not-for-profit organization, while the INGKA Holding B.V. is the parent company of the IKEA Group. Of all IKEA stores, more than 230 are run by the INGKA Holding, while the rest are managed by franchisees outside of this company.
Inter IKEA Systems B.V., separate from the IKEA Group, which is also registered in the Netherlands, is the owner and the franchisor of the IKEA concept and trademark worldwide. The ownership of
Case introduction(1-1.5p)/3p
IKEA Group
History
The IKEA group is a private Dutch-registered company with an origin from Sweden. It is the world’s largest furniture retailer, selling a wide range of Scandinavian-style well-designed, functional home furnishing products at low prices.
Founded in Sweden in 1943 by Ingvar Kampard, IKEA initially sold basic household goods at discount prices; four years later, the company began selling furniture. In 1955, IKEA started designing its own low-priced furniture and in 1958, IKEA’s flagship store opened in Sweden.
In 1960s – 1970s, the IKEA concept started to take shape. IKEA stores arrived outside Sweden and spread to other parts in the world.
From 1980s, IKEA expanded dramatically into new markets such as France, UK, USA, etc. The company began to take the form of today’s modern IKEA. By the end of 2012, there were 338 IKEA stores operating in 40 countries around the world. organisation structure
It is believed that the complex structure of IKEA is designed to protect the Kamprad Family from taxes and to the possibilities of a takeover of IKEA. In fact, the IKEA group is owned and operated by a complicated array of non-profit and for-profit corporations. Kamprad does not technically own IKEA; instead, he controls the company through a holding company.
The company’s structure can be divided into two parts: operations and franchising. Most of IKEA’s operations are owned by the Stichting INGKA Foundation, which is established by the Kamprad family in the Netherlands as a tax-exempted, not-for-profit organization, while the INGKA Holding B.V. is the parent company of the IKEA Group. Of all IKEA stores, more than 230 are run by the INGKA Holding, while the rest are managed by franchisees outside of this company.
Inter IKEA Systems B.V., separate from the IKEA Group, which is also registered in the Netherlands, is the owner and the franchisor of the IKEA concept and trademark worldwide. The ownership of