Ingvar Kamprad and IKEA

Mary MitchellSherri Nasim

Juliet ProJason Pistillo

Flickr: ktpupp

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Strategy

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Cost Cost LeadershipLeadership

Porter’s Generic Strategies

DifferentiationDifferentiation FocusFocus

IKEA’s Strategy

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Cost Cost LeadershipLeadership FocusFocus

Young householdsLow cost furnitureLow cost store design

Low cost cultureGood Designs

Get it now

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Early success

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Furniture in post-war SwedenFurniture in post-war Sweden

Small & Decentralized Pent-up post war

demandExpensive furniture

Social Need

Flickr: mandolux

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Current Retailers

Created new distributionLower Costs

Stronger competition

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Internationalization

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“It is our duty to expand” -Ingvar Kamprad

Photo: WikipediaFlickr: ajdavis

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Challenges

Angry German Retailers

Maintain Culture

Flexibility vs Common Concept

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Ingvar Kamprad

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"The vast majority of people don't have six figure amounts in the bank and don't live in enormous apartments...It is for just such people that I created IKEA. For everybody who wants a comfortable house in which to live well. A need that crosses all countries, races and religions" - Ingvar Kamprad

Beautiful Furniture + Affordable Price

Vision

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“Ten minutes are not just one-sixth of your hourly pay,...Ten minutes are a piece of yourself. Divide your life into ten-minute units and sacrifice as few of them as possible in meaningless activity” -Ingvar Kamprad

Social concernCost

Simplicity and Common SenseEfficiency

Culture

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What lies ahead?

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What happens after Ingvar is gone?

Photo: ikea.com

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VS

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The End.