Literature review :

Ikea company is a worldwide home furnishings brand that provides affordability, style, and
comfort to consumers all over the world. It was created by Ingvar Feodor Kamprad (1926–2018)
born in the Swedish province of Smaland in southern Sweden. In 1943, Ingvar founded IKEA at
the age of 17, based on his initials as well as the first letters of the farm (Elmtaryd) and hamlet
(Agunnaryd) where he grew up. After that, he started selling IKEA flatpack products from his
own warehouses.
In 1950s, the cheap costs of IKEA items have made many Swedish furniture sellers feel
threatened. They placed suppliers under pressure to abandon the IKEA brand. They try to ban
Ingvar from exhibiting at or even visiting furniture shows in the 1950s. But every problem has a
solution, which is why IKEA began looking for collaborations abroad.
In 1953, In Älmhult, a permanent showroom opens as the firt one in the history of IKEA that
customers can see and feel the quality of the items before buying them, and Ingvar can meet and learn
from them in person.
In 1956, Kamprad added flat-boxed furniture meant to be built at home to IKEA's assortment. This
proved to be the company's turning point. The new goods significantly reduced shipping and labor
expenses while allowing buyers to simply bring the merchandise home. Because of the tiny size of the
packed product, items may be stocked at the sales site rather than in a warehouse.
Kamprad's firm flourished and grew when the first IKEA retail shop opened in 1958. IKEA grew
throughout Sweden, Norway which was the first Ikea store outside the Sweden, then to continental
Europe and the rest of the globe. Today, there are almost 450 IKEA shops throughout the world.
In 2000, IKEA started selling items on the Internet, and the firm grew quickly. By 2003, it had become
so popular that its catalog had the world's largest yearly print run, and by 2009, it was available in over a
dozen languages. Kamprad became one of the world's richest men in the early twenty-first century as a
result of IKEA's spectacular success.
The core IKEA concept – simple, inexpensive flatpack furniture created, distributed, and marketed in-
house – had been realized. Moreover, the underlying concept behind IKEA was and continues to be that
everybody should be able to purchase fashionable, contemporary furniture. Kamprad thought he was not
just saving money and gaining money, but also assisting the people.

Current company’s status :

For the current status of IKEA, The Inter IKEA Group encompasses the IKEA Franchisor, Range,
Supply, and some Industry activities. IKEA franchisees buy items from firms in the Inter IKEA Group
and pay a franchisee fee depending on retail sales.
 In fiscal year 2020, the corporation produced over 40 billion Euros in global revenue. IKEA's excellent
understanding of its consumers is one of its primary competitive advantages. The organization is aware of
the purchasing aspects that impact consumers' decisions to purchase furniture and employs the finest
techniques to influence that choice. IKEA offers affordable costs and a wide variety of items, and it is
continually launching new product designs that are fashionable in the eyes of customers. All of the items
are meant to be portable and simple to construct. Furthermore, the organization provides an
extraordinarily diverse product line and a pleasurable buying experience. All of these characteristics are
in sync with what buyers want and need, resulting in increased sales. As of 2019, IKEA was the most
popular furniture retailer among Americans.
Moreover, IKEA was the world's fourth most valuable retailer, making it the most valuable furniture
retail brand, with a valuation of over 48.1 billion US dollars. The company has 445 locations throughout
the world and 50 e-commerce markets. In 2020, IKEA shops will have served over 800 million
consumers. IKEA sells furniture and furnishings for every room in the house, as well as outdoor and
workplace supplies. In addition to furniture, the corporation owns and runs restaurants, residences, and
apartments. Nonetheless, the company's primary activity is designing, making, and selling furniture.