Introduction

IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943 with its headquarters in Denmark. Today it is the world's largest furniture retailer, recognised for its Scandinavian style. The majority of IKEA's furniture is flat-pack, ready to be assembled by the consumer. This allows a reduction in costs and packaging. IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range is available in all IKEA stores and customers can order much of the range online through IKEA’s website. In August 2008 the IKEA group had 253 stores in 24 countries, with a further 32 stores owned and run by franchisees. Low prices are one of the cornerstones of the IKEA concept and help to make customers want to buy from IKEA. This low price strategy is coupled with a wide range of well designed, functional products.
Since it was founded IKEA has always had concern for people and the environment. The IKEA vision ‘to create a better everyday life for the many people’ puts this concern at the heart of the business. IKEA has responded to the public’s rising concern for sustainability in its choice of product range, suppliers, stores and communication. It has also spotted business potential in providing sustainable solutions.

Expansion

Although IKEA is one of Sweden's best-known exports, it has not in a strict legal sense been Swedish since the early 1980s. The store has made its name by supplying Scandinavian designs at Asian prices. Unusually among retailers, it has managed its international expansion without stumbling. Indeed, its brand - which stands for clean, green and attractive design and value for money - is as potent today as it has been at any time in more than 50 years in business.
The company expanded in a moderate pace up until the beginning of the 80s. From an annual turnover of 1,2 billion Euro in 1984 there has been a rapid development to 11 billion Euro in 2002. The