I stands for the founder's first name Ingvar
K represents the founder's last name Kamprad
E comes from Elmtaryd, the farm at which Ingvar grew up
A is the name of the small village of Agunnaryd were Ingvar lived
1943
Ingvar Kamprad founds IKEA at the age of 17. The first products he sold, were pens, wallets, picture frames, table runners, watches, jewellery and nylon stockings. He chose these products because he could bulk buy them at a low price in Stockholm and then sell them individually for a low price. In this period, Sweden became an example of the caring society, where rich and poor were equally well looked after. Ingvar tried to offer service to rich and poor through the lowest prices.
1945
For any company wanting to grow to a substantial market leader, advertising and marketing are essential. In 1945 the first IKEA advertisements appeared in local newspapers. Furthermore, Ingvar offered his products in catalogues by mail-order. Transportation in those days was on a primitive level, the products were basically driven around in an old milk van and shipped further by train.
1947
Today IKEA is mostly known for its furniture. Ingvar sold his first furniture in 1947. His suppliers were the local manufacturers close to his hometown. The furniture appeared to be a success and soon after the line expanded.
1951
In 1951 he outlined IKEA's future destiny: to be a large scale self assembly furniture provider, focusing on low-priced furniture. Ingvar had already worked with catalogues, to complete his new plans; he published the actual first expanded IKEA catalogue.
1953
In 1953 the first furniture showroom was opened. Now customers could actually see the function and quality of furniture before ordering. Not only was the service to the clients of importance, in their showroom, clients could see tested quality products. It worked, people chose quality products at a budget price.
1955
Because of a boycott from IKEA's suppliers, the company was forced to design its own furniture. Soon after, this led to an even greater reduction in price.
1956
One by one, IKEA tries to manufacture its products for customer transport by car. Therefore, they design the products so that they could be packed flat and assembled by the customers at home. Again this resulted in an attractive price.
1959
The fourth employee at IKEA, named Gillis Lundgren, designed TORE. This design line was a big hit, it provided customers with practical storage ideas for their kitchens and the rest of the home. In the 1950s and 1960s, IKEA established a good relationship with Polish wood suppliers, because this was important to maintain low furniture prices.
1973
In Zurich, Switzerland the first store outside Scandinavia was opened. Soon after, the expansion in Europe continued in Germany. Today this is the largest IKEA market.
1974
The introduction of modern plastics provides designers with new ways to construct efficient products. Choosing the right production method is essential in the design process.
1984
The first IKEA store opens in Belgium.
1985
After some doubts about whether or not IKEA should move on to the American market, the first IKEA store opens in the USA in 1985. USA stood for a country full of possibilities and had everything. The sales figures confirm a worldwide market for useful and attractive furnishings at budget prices. IKEA now has 114 stores in 25 countries.
Source: http://www.ikea.com/ms/en_GB/about_ikea/timeline/intro.html
IKEA is a company operating on an international scale. Every market and country asks for a different approach. IKEA has its offer, but it also has to meet the worldwide demands. Some products might do well in some countries, but not in others.
In general, wherever and in whatever stage of the production and selling process, one key business idea is central:
"We shall offer 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." How is IKEA different from other furnishing stores? They offer a wide range, or good design and function, or low prices. While we offer all of these. That's our business idea. “
Source: http://www.ikea.co.uk/ms/en_GB/about_ikea/our_vision/better_life.html
The vision of IKEA can not be phrased better than by IKEA itself:
'The IKEA business idea is to offer a wide range of home furnishings with good design and function at prices so low that as many people as possible will be able to afford them. And still have money left!
Most of the time, beautifully designed home furnishings are created for a small part of the population and the few who can afford them. From the beginning, IKEA has taken a different path. We have decided to side with the many.
That means responding to the home furnishing needs of people throughout the world. People with many different needs, tastes, dreams, aspirations...and wallets. People who want to improve their homes and create better everyday lives.
It's not difficult to manufacture expensive fine furniture. Just spend the money and let the customers pay. To manufacture beautiful, durable furniture at low prices is not so easy. It requires a different approach. Finding simple solutions, scrimping and saving in every direction. Except on ideas.
But we can't do it alone. Our business idea is based on a partnership with the customer. First we do our part. Our designers work with manufacturers to find smart ways to make furniture using existing production processes. Then our buyers look all over the world for good suppliers with the most suitable raw materials. Next, we buy in bulk so that we can get the best deals, and you can get the lowest price.
Then you do your part. Using the IKEA catalogue and visiting the store, you choose the furniture yourself and pick it up at the self-serve warehouse. Because most items are packed flat, you can get them home easily, and assemble them yourself. This means we don't charge you for things you can easily do on your own.
Source: http://www.ikea.co.uk/ms/en_GB/about_ikea/our_vision/better_life.html