The entrepreneurship within IKEA

Résumé du document

We have chosen to use Ikea as the company in which we will base the analysis of this case report. The Ikea has been chosen is because we believe that it is a company which stems from entrepreneurial activities right from the beginning of its existence, to the present day. Ikea is a worldwide furniture retailer, the largest of its kind, and it is thus important to understand how they have become so successful, what sets them apart from the competition. It is also interesting to see how they have developed and integrated ideas as well as innovative designs which keep the consumer coming back while attracting new customers. We will also explore how the company is able to maintain the position of market leader and have a first-rate reputation. Even though the goods and services provided are inexpensive, they have great quality. The key factors displayed, are how Ikea's growth into new markets occurs, and how the development of their products is maintained at constant rate. We will discuss who is responsible for this and what techniques Ikea incorporates. This case report relies upon information from a number of different sources. These include Newspapers, Articles, Text Books and the Internet. We have also used our own knowledge to a certain extent, through visiting stores in the past in the United Kingdom, France and Sweden. This has given us valuable information to what it is like first hand, to experience the Ikea sensation, and view it from the customer's point of view.

Extraits

[...] The actual ways in which the Ikea products are packaged and distributed are a major factor in the companies' success and growth. Through flat packaging, which reduces shipping costs and potentially minimises the possibility of transport damage and also the increased store inventory capacity, Ikea has been able to adopt efficient economies of scale. II. From Entrepreneurship to Corporate Entrepreneurship A. Establishment of the concept in the early years Ikea is not only a successful company nor an international brand, but it is a worldwide concept which influences people's way of life and mentality. [...]

[...] Team-work is encouraged at all the levels and Ikea itself wants to be considered as a big team. If individual can sometimes be rewarded for their actions, the company prefers rewarding group of people (all the employees of a shop, a purchasing office, a design group Another proof of Ikea's will to encourage entrepreneurship is the use of the “self-managed learning method” in order to provide continual learning to the managers. This is a mix of Seminars, actions and methods to improve the managers' skills in term of innovation, entrepreneurship, flexibility and independence. [...]

[...] Then, thanks to this organizational culture but as well with the leadership, we can say that Ikea has developed an organizational architecture that is an integrant part of the entrepreneurship management. The organisational architecture is the term used to describe the long term relational contract within and around the organization with the customers, suppliers and staff. Indeed they have a lot of suppliers very confident in themselves and the customers have to adopt the “Ikea way of life”. In fact, Ikea's competitive advantage arises from its ability to recognize and exploit the unique combination of resources, capabilities, organizational culture and circumstances to create the prerequisites for distinctiveness and sustainability. [...]

[...] This is what enforces Ikea's difference with their competitors: a quality product is often very expensive and it is not always convenient. This image is perfectly conveyed by Medias thanks to a purposeful use of them. Ikea's advertising campaign has always fit to their positioning: ads target everyday people with catchy and humorous slogans. However, Ikea catalogue is the key communication tool because it gathers all information (dimensions, prices, descriptions) available on furniture and gives ideas to customers on how organize their home. [...]

[...] The entrepreneurship within IKEA We have chosen to use the Ikea as the company in which we want to analyse in this case report. The reason for choosing Ikea is because we believe it is a company which stems from entrepreneurial activities from the very beginning of its existence to present day. Ikea is a worldwide furniture retailer, the largest of its kind, because of this it is important to understand how they have become so successful, what sets them apart from the competition. [...]