The IK in IKEA

Ingvar Kamprad almost single-handedly turned his furniture company into a global conglomerate. What started out as a venture to sell elegant furniture at reasonable prices became one of the world’s largest companies in its industry. Few success stories are as intriguing or inspiring as that of IKEA.

When he opened the business in 1943, 17-year-old Ingvar Feodor Kamprad wanted to give average families access to quality furniture products at affordable prices. He did this by shipping the furniture unassembled in flat-packs. The DIY concept eliminated the need for assembly labor. Also, the packaging policy cost him less in shipping while allowing him to ship more items at any one time. These lowered business costs and allowed him to keep his wares at bargain basement prices while maintaining profitability.

Kamprad’s methods revolutionized the way furniture and other retail items were sold. When his suppliers began to shut him out in protest of his low prices, the never-say-die entrepreneur launched his own production line to stay in the game. He kept IKEA costs low in order for his prices to remain low, forcing others in the business to follow suit.

Today, he pushes on with full control of a company that sells furniture to at least ten percent of European households. Its success has kept him high on Forbes’ list of billionaires year after year. Yet he continues to maintain a low profile and prudent lifestyle which most likely keeps him and his company grounded.

Kamprad’s business philosophies stemmed from his Swedish beginnings in a poor and struggling farming community. His hard work and frugality continues to shape the beliefs and goals of his company today.