IKEA, Sweden’s Jewel

He printed fliers that were delivered by the milkman to every house and farm in the area—the equivalent of today’s saturation mailing via ADVO. The difference between Kamprad’s business model and ADVO’s was that the milkman took the orders and delivered the merchandise.

Furniture was Kamprad’s passion, so a new business model was required. With his revenue from the door-to-door business he bought an old joinery and turned it into a display room for local furniture-makers. His philosophy was to make available good-looking, sturdy furniture that would enhance the lives of ordinary people who didn’t have a lot of money and who lived in his hardscrabble parish. Local retailers naturally were unhappy when this direct selling method started undercutting their prices. So he again changed his model, this time designing his own products so no one could accuse him of unfair competition.