IKEA which is the biggest furniture company established in 1943 Sweden by Kamprad. He had a unique philosophy of management at that time. This is a very simple and a deserved thing but it is hard to do for company’s profit. Making a good quality and low cost products is the purpose of the business in IKEA. Nowadays, he’s management is the good example to other many companies. IKEA has been bigger and bigger until now. It has big 190 malls in 30 countries, sales over 15 billion dollars per year.
What is the main reason of success? CEO-Kamprad is the key of success himself. Here are several his principles.
1. Variety but do not lose IKEA’s true colors.
Personally, I think that this principle has been truly working now. There are all kinds of furniture from kitchen to kid’s room. And even sell a lot of interior small pieces such as the toys, dishes, pictures, trash can. Even though there are countless goods, I can always distinguish IKEA’s product. IKEA has its own color.
2. Practical philosophy and Realism.
IKEA’s furniture is very simple and practical. Their furniture has a unique idea for consumer and it makes people comfortable in their life.
3. Profit is a source for management.
I am very impressed about this principle. Making a profit is not just for personal interest but for company and its development.
4. The smallest input and the biggest output.
IKEA only use a catalog for P.R until now. It is the cheapest marketing method but it is working so much well. In catalog, cheap and pretty stuff is decorated and it attracts people to IKEA.
5. Frugality (simplicity) is the virtue.
The CEO, Kamprad live frugally. He lives in a small house, uses a compact car even though he is one of the richest in a world. This kinds of personality of CEO reflect IKEA’s business.
6. Endless bright ideas.
IKEA’s furniture is not just normal furniture. The unique and bright ideas make the products unique and it is the IKEA’s market power.
There are many analysis information of IKEA’s business. For example, how to reduce the cost of production and operating or how to find a larger market abroad. However, I just want to focus on the Kamprad’s principle. This is like a frame of IKEA’s all kinds of marketing. And I do know that all elements doing in IKEA are fit in this frame. If the company has no its own clear color, no definite principle of business, this company cannot impress its customer.
20600171 - 8th entry
No comments:
Post a Comment