CHAPTER 1 : PREFACE

1.1 Background

According to (Kampard, 1999) It all started in 1920, when 5 years old Ingvar Kampard starts selling matches to his nearby neighbors and by the time he was seven, he starts selling further afield, using his bicycle. He finds that he can buy matches in bulk for a cheap price in Stockholm and re-sell them individually at a very low price, but still make a good profit. From matches he expands to selling greeting cards, flower seeds, Christmas tree decorations, and later pencils and ball-point pens. When he was 17, his father gives him money as a reward for finishing his studies. The name “IKEA” itself derived from his name (the word “I”), the first letter of the village he grew up, Elmytard (the letter “E”), and Agunnaryd, his hometown in Småland, south Sweden. Ingvar’s strategy was to sell his wares in a reduced price. Since then, IKEA grows more rapidly in the following years. From rural area in North Sweden, IKEA grows as one of the most-renown furniture company in the world.

Ingvar released his first advertisement in 1945 when his business outgrows even his own ability to make individual sales calls. In 1948 was a significant year for IKEA. In this year, Ingvard introduced the first furniture in his product range. Unbeknownst to him, the furniture business will be the hallmark of IKEA. The first furniture showroom opens in Älmhult, IKEA to prove its superiority against its competitor who sells low-price products. In the site that will be the futurefirst store and headquarter of IKEA, Ingvar proves the more superior quality of his furniture. Thus, winning the joust with his competitor and paving IKEA’s future as the world’s biggest furniture retailer. The year was 1953.

Three years later, when one of IKEA’s co-worker disassemble a LÖVET table so that it will fit into a car without being damaged, it inspired