The quest for the best system
As the IKEA business was expanding in the early 1980s, IKEA Founder Ingvar Kamprad was looking for a way to grow the company internationally while maintaining its entrepreneurial spirit and safeguarding the underlying IKEA Concept. He wanted to find a system that would serve the best interests of the IKEA Concept and the people in IKEA markets. One that would enable total independence and an ownership structure suited for a long-term perspective. The stock market didn’t match these criteria. Besides, Ingvar believed that the IKEA business first had to build resources before it could expand. After researching the subject thoroughly, he came to the conclusion that a franchising system was the best alternative.