IKEA

1
IKEA

• IKEA founder overtakes Gates as world's richest
• By Rachel Andersen

2
Global Design

• Name Acronym for founder Ingvar Kamprad and his
  boyhood home Elmtaryd, Agunnaryd.
• Founded Sweden, 1943
• Operations Designs/sells low-price home
  furnishings that require assembly.
• 2004 Revenue 15.5 billion 1.7 billion in U.S.
  sales
• Number of Stores 216 in 33 countries 24 in U.S.
• Employees 84,000 worldwide 8,000 U.S.

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The IKEA Concept

• The IKEA vision is to create a better everyday
  life for the many people. We make this possible
  by offering a wide range of well designed,
  functional home furnishing products at prices so
  low that as many people as possible will be able
  to afford them.
• - IKEA website

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Ingvar Kamprad

• Kamprads personal fortune of 53 billion versus
  Bill Gates fortune of 47 billion.
• Modest lifestyle
• Flies economy class
• Avoids wearing suits
• Drives his old Volvo when not using public
  transportation
• Has kept ownership of the company in his family.

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Why So Cheap?

• Purchasing as inexpensively as possible and
  flat-packing furniture for customers to put
  together themselves.
• Allows them to reduce costs and use of packaging
  by not shipping airthe volume of a bookcase, for
  example, is considerably less if it is shipped
  unassembled rather than assembled.

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IKEA Store Openings

• London, UK February 2005
• Paris, France February 2005
• Brussels, Belgium March 2005
• Istanbul, Turkey May 2005
• Rome, Italy June 2005
• Atlanta, USA June 2005
• Dallas, USA August 2005
• Hsing Chuang, Taiwan November 2005
• Boston, USA November 2005

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IKEA Online

• Check out the
• website

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IKEA Hysteria

• Saudi Arabia
• IKEA announced that they were offering credit
  vouchers to the first 250 clients
• More than 8,000 people showed up before the store
  opened.
• Stampede killed three and injured 17 people.

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Questions?

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