Ikea Way in Russia

The international strategy for IKEA is crucial in their expansion strategy, without such a tendency to expand into new market and become even more global, they would not be able to achieve what they are know for, their price leadership. By entering new market at the right time (it wasn’t a good time to invest massively in Asia 20 years ago since the market was not ready yet especially in terms of target market) IKEA has been able to develop and refine their strategy in order to keep their leadership and become the global corporation it is

IKEA provides vast variety of home products from furniture, bed, tables, chairs, to home decoration, and kitchen accessories. At the heart of the IKEA strategy was its product range which founder of the company Ingvar Kampard called “Our Identity”(Bartlett, Nanda 1996). IKEA is recognized world-wide for its innovative approach toward business and stylish designs. The company has used innovation for cost leadership. “Almost all IKEA products are designed for flat packaging, which reduces shipping costs, minimizes transport damage,

IKEA is the world’s largest retailer of home furnishings. It strives to provide simple, functional, modern, and useful products at affordable prices to as many people as possible in as many places regardless of their geographical location. IKEA concept is implemented from the start of idea, implemented into the design, manufacture, logistics, sales and final assembly of each product. IKEA was developed by Ingvar Kamprad from southern Sweden, where people are known for surviving and making the most from limited resources.

IKEA experimented with a self service pick upsolution, allowing shoppers to enter the warehouse, load flat packed furniture on to trolleys and then take them through the checkout. It was so popular that soon it became the company norm inall stores. By 1973, IKEA was the largest furniture retailer in Scandinavia with nine stores. The company enjoyed market share of 15% in Sweden. The main in charge of European expansionwas Jan Aulino, Kamprad’s former assistant, who was just 34 years old when the expansion started. IKEA also entered in North America, opening 7 stores in Canada between 1976 and 1982 and got success then in 1985 in entered in United States later the company found that its European style offerings did not always resonate with American consumers. IKEA also acquired Britain’s Habitat in the early 1990s and to run it under the Habitat brand name. In total therewere 285 IKEA stores in 36 countries and territories. And important limiting factor on the paceof expansion was building the supply network. Later IKEA opened its store in China. In chinastore was located near public transportation, and IKEA offers delivery services so that Chinesecustomers can get their purchase home. The store them salve are large warehouse festooned inthe blue and yellow color of the Swedish flag that offers 8000 to 10000 items, from kitchencabinet to candlesticks. There plenty of parking outside and the stores are located with goodaccess to major

IKEA established in 1943, has been one of the largest household goods retailers in the world. Moreover, IKEA has always been keen on providing the mass majority with well designed, good quality and low price household furniture. Through analyzing its marketing strategy and marketing mix, we can find the reasons why IKEA can be so successful in the intense competition, which we learn from.

IKEA founded by 17 year old Ingvar Kamprad, in Sweden. The company's name is drawn from the initials of Ingvar Kamprad, Elmtaryd (the farm where he grew up), and Agunnaryd (his hometown in Småland, southern Sweden).

The 1950s marked many milestones for the company. In 1951, IKEA published the first annual IKEA furniture catalogue, and in 1953, it opened its first showroom (“Milestones”). In 1958, the first IKEA store opened in Älmhult, Sweden. The IKEA brand started to take shape in the 1960s and 1970s, as new stores opened and the company

IKEA is a Swedish organization which was established in 1943 by Ingvar Kamprad. (UKessays, 2015) explains that, today Ikea Group is possessed by Stitching INGKA Foundation. INGKA Holding BV is a guardian organization for all IKEA Group organizations and claims the idea and brand name IKEA.23 Owning 262 stores in 24 nations and being spoken to by 296 IKEA stores in 36 nations, IKEA can be called one of the biggest worldwide furniture retailers.

IKEA was founded in 1943 by a 17-year-old Ingvar Kamprad in Smaland, south of Sweden. IKEA formed its name from the founder 's initials (I.K.) plus the first letters of Elmtaryd and Agunnaryd, the farm and village where he grew up from a farmer to a businessman. Ingvar sold whatever he found could fill with a product at a reduced price under the brand name of IKEA

In 1965, IKEA inaugurated its first store and showroom in Stockholm, Sweden capital. IKEA’s successful operations allowed the company to expand rapidly. By 1973 it was considered the largest furniture retailer in Scandinavia and its expansion reached Switzerland, Germany and Western Europe (Hill et.al, 2015).

In 1943, when he was 17 years old, Ingvar Kamprad determined to start his own business by establishing a company. The name IKEA was born then. Over nearly 70-year history of formation and development, IKEA has become a giant multinational corporation.

For products, they used a standardized approach, the reason they used this approach was because it is a common strategy for IKEA that when entering new markets they usually more or less use the same product range in all new countries-irrespective of what is considered popular by local customers. Their justification for this strategy was that the needs are pretty much the same in Sweden and Russia and through their market knowledge and IKEA range, they would be successful.

As pointed out in Ikea's mission statement, the company is in business to produce high quality products at a low cost. This would support a

Ten stores had opened up in West Germany by 1979 and the company continued to open several stores around Europe through the 1980s. From there, stores began opening up worldwide. IKEA opened its first store in Canada in 1979 and then began moving into the United States, which seemed to be the largest furniture market in the world. In 1987, IKEA began opening stores in the United Kingdom. Its first store was in London and was the largest home furnishing store in the country

IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories. The company is the world 's largest furniture retailer. It was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden. As of October 2010, the chain has 313 stores in 38 countries, most of them in Europe, North America, Asia and Australia. The word IKEA was an acronym of his name and address: Ingvar Kamprad and Elmtaryd, Agunnaryd--the name of his farm and the name of the village it was located within.