Scribd Logo
Upload

Welcome to Scribd!

  • 196 views

    IKEA

    Uploaded by

    Harsh Sharma
    Ikea is a large multinational furniture retailer founded in Sweden in 1943. It has over 300 stores worldwide and had revenues of €23.1 billion in 2009. Ikea's mission is to offer affordable, well-designed home furnishings and its strategy involves using a low-cost business model, standardizing products, and pursuing global expansion while also adapting to local markets. Ikea sources products from over 50 countries, with major suppliers in China, Poland, and Sweden, and sells primarily in Europe, North America, and more recently Asia.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    IKEA

    Uploaded by

    Harsh Sharma
    196 views18 pages
    Ikea is a large multinational furniture retailer founded in Sweden in 1943. It has over 300 stores worldwide and had revenues of €23.1 billion in 2009. Ikea's mission is to offer affordable, well-designed home furnishings and its strategy involves using a low-cost business model, standardizing products, and pursuing global expansion while also adapting to local markets. Ikea sources products from over 50 countries, with major suppliers in China, Poland, and Sweden, and sells primarily in Europe, North America, and more recently Asia.

    Original Description:

    About mass production

    Original Title

    IKEA PPT

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Ikea is a large multinational furniture retailer founded in Sweden in 1943. It has over 300 stores worldwide and had revenues of €23.1 billion in 2009. Ikea's mission is to offer affordable, well-designed home furnishings and its strategy involves using a low-cost business model, standardizing products, and pursuing global expansion while also adapting to local markets. Ikea sources products from over 50 countries, with major suppliers in China, Poland, and Sweden, and sells primarily in Europe, North America, and more recently Asia.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    196 views18 pages

    IKEA

    Uploaded by

    Harsh Sharma
    Ikea is a large multinational furniture retailer founded in Sweden in 1943. It has over 300 stores worldwide and had revenues of €23.1 billion in 2009. Ikea's mission is to offer affordable, well-designed home furnishings and its strategy involves using a low-cost business model, standardizing products, and pursuing global expansion while also adapting to local markets. Ikea sources products from over 50 countries, with major suppliers in China, Poland, and Sweden, and sells primarily in Europe, North America, and more recently Asia.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 18
    At a glance
    Powered by AI
    The key takeaways are that IKEA is a global furniture retailer founded in Sweden in 1943. It has grown significantly over the years and now has over 300 stores worldwide.

    IKEA's vision is to offer a wide range of well-designed, functional home furnishing products at prices as low as possible. Its mission is to offer furniture and home accessories that are affordable for the many people.

    IKEA's main business strategies are cost leadership through standardization and economies of scale as well as differentiation through its unique designs and large product assortment. It also focuses on emerging middle class markets globally.

    By

    Rahul Karangutkar (0951826)


    Parag Jain ()
    Atoosa Zand (0)
    Trung
    Seun Fayemiwo (0)
    Amanda (0)
    Outline

     Introduction
     Vision And Mission
     Growth
     Geographical Scope
     Strategy
     Attractiveness Of Market
     Strategic Competencies
     Strategy
    Introduction

     Ingvar Kamprad Elmtaryd Agunnaryd


     Founded: 1943 in Almhult, Smaland, Sweden
     Founder: Ingvar Kamprad
     Headquarters: The Netherlands
     Parent Company: INGKA Holding
     Industry: Retail
     Product: Self Assembly Furniture
     Chain of Product: Restaurant, Manufacturing, Housing,
     Revenue: €23.1billion (2009)
     Employees: 127,000 (2009)
     Area Served: Multinational
     316 stores (2010)
     699million visitors (2010)
    IKEA

     Vision:
     Mission Statement: Ikea's mission is to offer a wide range of home furnishing items of
    good design and function, excellent quality and durability, at prices so low that the
    majority of people can afford to buy them
     Growth
    TURNOVER € BILLION
    25
    20
    15
    10 TURNOVER €
    5 BILLION
    0

    Source: Ikea, 2010


    Growth Pattern

    No of IKEA retail
     Started 1943 as a one man
    outlet
    mail order company
    350
     The Ikea concept started
    in 1950 300

     The company started 250


    sourcing supplies from 200
    No of
    IKEA
    other European countries retail
    150
     In 1960, the warehouse outlet
    principle was introduced 100

     In 1963, Ikea went 50


    abroad, opening in 0

    20…
    20…

    20…
    Norway

    2007
    208
    1954

    2010
    Geographical Scope

    SALES BY REGION
    Europe – 81%, North America -16% and Asia & Australia -3%
    TOP SUPPLIER COUNTRIES
    China -18%, Poland- 12%, Sweden -9%, Italy -7% and Germany -6%
    Supply Chain (IKEA)

    Source: Thetimes100.co.uk, 2010


    Business Strategy

     Segmentation
     Middle-class population, All age group.

     Advanced Economies – Europe, USA, Australia

     Emerging Markets – China

     Positioning
     Cost Leadership

     Differentiation
    Business Strategy

    Economies of Economic
    Economies of scope: Design
    Scale: Furniture and
    Standardisation Restaurant
    Share facilities Logistics

    Diversity in Customers
    Assortment included in the
    value
    chain, minimu
    Competitive m staff
    Advantage

    Network of
    Supply: 1300
    suppliers in 53
    Countries

    Distinctiveness
    in Design Large
    Warehouse
    Strength of
    Showroom in
    brand name
    Sub-Urban
    centres
    Value chain of IKEA

    SUPPLIERS CUSTOMERS

    Purchasing Stores
    Range

    DISTRIBUTION
    Resource Based View (IKEA )

    PHYSICAL ASSETS OWN 313 STORES WOLDWIDE AND ARE USUALLY LOCATED
    OUTSIDE THE TOWN
    37 STORES THAT ARE FRANCHISED
    38 COUNTRIES
    WORLD LARGEST FURNITURE RETAILER

    FINANCIAL ASSETS PROMOTION AND ADVERTISING


    SOURCE FROM FRANCHISE
    EXPERIENCED A 15% SALES INCREASE BETWEEN 1990-2005
    2005 THEY MADE 14.8 BILLION EURO
    2010 THEY EXTIMATED $23 BILLION

    INTELLECTUAL GOOD RELATIONSHIP WITH GOVERNMENT


    RESOURCE SKILLED STAFFS
    UNIQUE FURNITURE STYLING
    OPERATE 24 HOURS DAILY
    GOOD RELATIONSHIP WITH SUPPLIERS
    BUILDING STRUCTUER
    Resource Based View

    REPUTION RESOURCE BRAND NAME


    FRANCHISING
    $128 MILLION FOR UNICEF IN 2015
    WELL KNOWN IN EUROPE ASIA AND AMERICA
    HUMAN RESOURCE 127,000 STAFFS
    SKILLED EMPLOYEE’S IN STORE’S AND WOOD’S
    GOOD TRANSPORT SYSTEM
    EXPERT DESIGNERS
    GOOD CUSTOMER SERVICE
    OVER 12,000 ITEMS PRESENT IN THE WEB
    MOTIVATION OF EMPLOYEES (REWARD SYSTEM)

    RELATIONAL 28 DISTRIBUTION CENTER


    RESOURCE GOOD INTERNET ACCESS
    NETWORKING SYSYTEM
    550 MILLION PEOPLE USING THEIR WEBSITE EVERY
    YEAR
    GOOD TRANSPORT SYSTEM
    PORTER’S DIAMOND MODEL: IKEA

    FIRM
    STRATEGY, STRU • Low cost  low price strategy
    • Suppliers CTURE &
    RIVALRY
    • Low bureaucracy
    • Technology
    • Rivalries:
     British “B&Q”
    Germany

    FACTOR DEMAND
    CONDITIONS CONDITIONS

    •Labour force: low cost • Population: 1.3 billion

    •Infrastructure: •The raising of Middle class


    poor => good
    SUPPORTING • Cheap furniture demand
    •Government policy INDUSTRIES

    (Porter, 1990) BUSINESS STRATEGY (SMM 206) PRESENTATION


    INTERNATIONAL
    Transnational Strategy

     Pressure for global Integration


     Standardising whenever possible
     90% of product line is similar across in more than
    12 countries
     IKEA’s marketing is centrally developed at
    headquarters
     Pressure for local responsiveness
     Adapting when necessary

     Modification of its furniture to suit individual


    countries e.g longer hangers in Italy and deeper
    wardrobes in USA
     Implementation of local adjustments in
    marketing to suit language and catalogue.
    Comparative Advantage

     Supply from China


     Low cost labour

     Labour skill

     Raw material accessibility

     Sales in EU, North America


     Very Large middle class group
    Conclusion

     Since IKEA’s target consumers are the middle-


    class, they should extend their retail services to
    Emerging Market Economies where Middle class
    population is rapidly increasing.
     IKEA should increase sourcing its supply from
    emerging markets, which are characterised by low
    cost labour to sustain its competitive advantage.
    REFERENCES

     Baraldi, E.(2008) “Strategy in Industrial Networks:


    Experiences from Ikea” Carlifonia Management
    Review, 50(4), 99 – 126.
     Beard, B. (2006) “IKEA facing competition on
    furniture row” Arizona Business Gazettes, available
    online at:
    http://www.azcentral.com/abgnews/articles/0824abg
    -tr-emerald0824.html , accessed 01/12/2010
     Boscor, D., and Bratucu, G. (2009). “Transnational
    strategies adopted by furniture manufactures- case
    study:IKEA” ProLigno, 5(3): 55 – 61.
     Datamonitor (2008). “Ikea Group”
    Thank You !

    You might also like