IKEA as an example of entrepreneurial business

Essay by joanabeckUniversity, Bachelor'sB-, April 2005

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Ingvar Kamprad's entrepreneurial nature emerges both in invention and innovation. He can be considered as a psychologist, designer and a businessman. Kamprad has created a new approach to perception of buyers. He generated the idea of customers equality in shopping. The simplicity, up-to-date date design and low prices of offering items attracted all classes of society. He has not created just a store with furniture, but also he tried to meet people's need by generating a place with freedom of choosing products in relaxing atmosphere. His intention was to be a market leader. In order to reach this assumption, he created his own style in furniture with help of twenty designers employed to provide unique furniture pattern. His entrepreneurial nature and self-reliance guided him to prevent the capital of the Ikea business in order to maintain existence of Ikea in the original culture and shape.

His innovation in opening furniture stores all over the world including developing countries shows to us his strong personality and resolution to take a risk.

He combined both ''lateral'' and ''vertical'' thinking in building up his business.

Despite of the fact, that Kamprad was not afraid of taking a great risk, he tried to limit all obstacles, which could have caused failure by setting up his ''sample of business'' in a small way and explore the market for demand. His action in approaching success is gradual. Kamprad' s ''lateral'' thinking has emerged in the idea to open stores throughout the world with the same range of furniture in Swedish style. As an entrepreneur, he organised and design production and he also created a division of labour to promote specialisation and efficiency


The Ikea business followed by Drucker's entrepreneurial conception, analysing his seven sources...