Translating a strategic plan into reality can be quite challenging. However, history knows many talented leaders who made it possible through meticulous planning and innovation. A prime example of such a leader is Ingvar Kamprad, the founder of the world’s largest furniture retailer IKEA. Kamprad had humble beginnings: he came from a rural region in Southern Sweden (“How Kamprad became king of IKEA”, n.d.). Since childhood, he was passionate about sales and serving the customer. As he grew older and founded IKEA, Kamprad’s dream was to innovate the furniture business and make merchandise more affordable, modernist, and convenient. The founder channeled his ambitions into the concept of flat-pack furniture that was easy to transport and assemble. For Kamprad, it was important to not only cust costs but make his customers’ lives better. Today, IKEA has long had other people leading the company, but the values established by its founder are still in place.
The story of Ingvar Kamprad and IKEA is remarkable because it can teach aspiring entrepreneurs a valuable lesson. Kamprad’s strategy was to gain a competitive advantage through both cost leadership and differentiation (Frynas & Mellahi, 2051). On the one hand, he made everything possible to offer his customers affordable furniture. He believed in their right to have access to modernist merchandise at reasonable prices. On the other hand, cost efficiency was not increased at the expense of the quality of goods. IKEA furniture has a distinctive look and fashionable design. It works well with many styles of interior design and lasts long enough. IKEA’s success demonstrates how a company can balance affordable prices and high quality to create a strong presence and build up resilience on the market.
References
Frynas, J. G., & Mellahi, K. (2015). Global strategic management. Oxford University Press, USA.