IKEA’s founder, Ingvar Kamprad, died in January 2018, aged 91. After starting from the humble Swedish beginnings, his entrepreneurial flare led to a multibillion-dollar global empire. Did you know the name Kamprad is a variant of Comrade? His passing marks a good time to review the strategy of IKEA. How radically it differed from other furniture businesses at the time of its conception makes for a good strategic case study.
The customer profile is the global middle-class. They are interested in items such as bookcases, side tables, storage units. They are aspirational. They are delighted by the value but also the philosophy of style and good design and frugality. Spending amounts are very similar around the world. Continue reading