Introduction
IKEA is a retail reality unlike any other. Named after its founder, Ingvar Kamprad, IKEA is the world’s largest furniture retailer with offices and stores located in 42 countries. That’s what makes it unique, but what truly sets IKEA apart is its culture. From its approach to customer service to its operations, IKEA strives to create an environment that embodies its core values.
Going Against the Grain
Back in 1943, Kamprad started IKEA with a simple philosophy—to make furniture “affordable for all.” This was an unconventional approach for a time when status was often determined by the quality of one’s furniture. But Kamprad looked beyond the irrelevant factors of quality and price and instead he concentrated on practicality and design. That made IKEA distinct from the others in the industry; the concept was to provide the same quality products as the big guys for less money.
Living By Healthy Values
Kamprad ignited the IKEA culture by writing down his basic ideas and values in a booklet titled IKEA’s Constitution—it remains the core of the company’s culture today. The founding principles stress the importance of “being true to yourself” and “staying humble.” While this modest attitude doesn’t mean that IKEA shies away from conflicts, it does lead to typically friendlier boardroom behaviours. Other key values include simplicity and cost-effectiveness, which in turn, result in IKEA’s efficient business practices and cost-cutting strategies.
A Focus on Continuous Improvement
IKEA keeps its culture alive in part by trying to stay ahead of the competition. This is accomplished through its focus on continuous improvement and product innovation. For example, IKEA was the first major furniture retailer to utilise the flat-pack format. This enabled customers to take advantage of greater storage capacities and lower costs. The IKEA culture is also apparent in its sales philosophy. Rather than emphasising aggressive sales tactics, IKEA prefers to create value for its customers. This attitude is embodied in the company’s “Life at Home” campaign—a range of programmes and projects designed to help customers make the most of their lives at home.
Involving Everyone
The IKEA culture also reaches its employees. This engagement is rooted in Kamprad’s strong belief in decentralisation and transparency. The company’s structure is highly decentralised which puts decision-making responsibilities close to customers and employees. This decentralisation also allows for involvement from all levels of the organisation. By promoting its culture through existing and prospective employees, IKEA strengthens its customer relationships and creates customer loyalty.
Conclusion
The IKEA culture isn’t a “one size fits all” kind of proposition; instead, the company’s values are tailored to different countries, regions and languages. IKEA is always looking for ways to make its furniture more accessible and better suited to its customers’ needs. All of this is made possible by the IKEA culture which promotes customer service, quality, simplicity and innovation.
