Besides these external challenges, IKEA also
faces significant internal ones. Since the company’s
founding in 1943, no strategic decisions have
been made without Mr. Kamprad’s involvement and
explicit approval. In 2013, Mr. Kamprad (now in
his late 80s) announced he is stepping down from
chairing Inter IKEA, the foundation that owns the
company. Many observers compare Mr. Kamprad’s
influence on IKEA’s culture and organization to
that of the legendary Sam Walton at Walmart.
Mr. Kamprad’s three sons will take on stronger leadership
roles at IKEA, with one of them now chairing
Inter IKEA.
Moreover, IKEA is privately held (through a
complicated network of foundations and holding
companies in the Netherlands, Lichtenstein, and
Luxembourg). This arrangement provides benefits in
terms of reducing tax exposure, but also creates constraints
in accessing large sums of capital needed for
rapid global expansion. IKEA will need to address
these challenges in order to live up to its strategic
intent of doubling its number of yearly openings in an
attempt to capture a larger slice of fast-growing markets
such as the U.S., China, and Russia