IKEA “IKEA founder overtakes Gates as world's richest” By: Rachel Andersen

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.

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

Ingvar Kamprad  Kamprad’s personal fortune of $53 billion versus Bill Gates’ fortune of $47 billion.  Modest lifestyle: Flies economy class Flies economy class Avoids wearing suits Avoids wearing suits Drives his old Volvo when not using public transportation Drives his old Volvo when not using public transportation  Has kept ownership of the company in his family.

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 air—the volume of a bookcase, for example, is considerably less if it is shipped unassembled rather than assembled.

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

IKEA Online Check out the website

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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