Ingvar Kamprad, the owner of IKEA, has the entrepreneurial nature emerges both in invention and innovation. Kamprad has created a new approach to perception of buyers. He generated the idea of customers’ equality in shopping. The up-to-date design and low prices attracted all classes of society. He has not only created a store with furniture, but also a place with freedom and relaxing atmosphere.
Ikea always has some unique ideas on sales promotion and marketing. One of the innovative actions of Ikea is reducing its staff. The number of staff in shop is purposely reduced, so the costumers could enjoy freedom in choosing items and participate more in the options. By reducing staff, the company also reduced costs. Thus, Ikea can set lower price to attract more consumers.
Ikea is an example of entrepreneurial company because it create an unconventional way of organizing production factors, effective marketing, and, efficient managing. Based on the reading, Ikea shows a characteristic of innovation.