The case study of IKEA highlights the significant role played by company leaders in developing a unique and profitable business strategy. The founder of IKEA, Ingvar Kamprad, was instrumental in shaping the company’s culture, values, and management practices, which have contributed to its success over the years.

Kamprad’s vision for IKEA was to create a concept company that would offer well-designed, functional home furnishing products at affordable prices to the masses. This vision guided the company’s strategy and operations, and it remains the same today.

Kamprad introduced several innovative practices, such as self-service, flat-pack furniture, portable furniture, and a restaurant, which have become hallmarks of the IKEA experience. He also designed the store layout to take customers on a journey through different set-piece room displays, which allowed them to see how furniture would look in real environments.

To preserve the company’s culture and values as it grew, Kamprad published ‘Testament of a Furniture Dealer,’ which detailed the IKEA philosophy and became the bible for all new employees. He also trained ‘ambassadors’ who became living examples of the philosophy and values of IKEA, placed in key positions in all stores and warehouses.

Kamprad emphasized the importance of Älmhult, the birthplace of IKEA, as a central feature of the company’s culture. He decreed that all key decisions about IKEA’s range would be made in Älmhult, and the design work took place there. This helped to preserve the cultural nuances of Småland, which Kamprad believed were essential to the company’s success.

In conclusion, company leaders can play a crucial role in developing a unique and profitable business strategy. They can create a clear and compelling vision for the company, introduce innovative practices, preserve the company’s culture and values, and emphasize the importance of the company’s roots. These actions can help to differentiate the company from its competitors, create a loyal customer base, and drive profitability over the long term.