1943: Kamprad began his career (fish, Christmas Magazines and seeds).
1935 and 1946 furniture prices rose 41%, he saw a business opportunity.
1951 IKEA couldn’t sell theirproducts directly, so they were just taking orders.
1952 IKEA Bought a Swedish furniture makers and by establishing new sources in Poland.
1953 Kamprad converted a disused facture into awarehouse-showroom by 1961turnover 40 million 80 times large...
1965 opened a second outlet in Stockholm (ample parking space with the basic concept of cash- carry)
1965 – 1973 Opened 7 new stores inScandinavia. Captured 15% of market. (Focus on younger buyers
1970 market was stagnating, and it was time to expand internationally, because they were working strictly local business,
1971 -1973,opened 1 store in Zurich with designs in knockdown kits and introduce the concept of self-service and cash and carry, by distributing a million catalogs.
1974 Opened furniture market but also thelargest furniture producer and exporter.
At this time do we need to have a massive expansion?
Split the operations...
Plus services: - Delivery in the exactly time ofthe company
* On line designs.
* They need a strategic group that include different minds and concepts (American, UE. Asia).
* We have the same product but with different orientation.* What happened if IKEA has other company with a better quality and the price is a little higher. With a different name.
1. What were the sources of IKEA’S successful entry infurniture retailing in Sweden?
Expansion to new customers, IKEA used the policy of: offer a wide range of home furnishing items, good design and function, low prices.
People break traditions andpeople were looking for something new and fashionable (70st).
New distribution and new and new manufactured models (scale economics)
2. How important was the internationalization to IKEA?