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IKEA
Presented by:
Danny Reyes, Feifei Zhong ,
Candy Zhong, Michelle Chen.
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Overview
Introduction
History
Current Situation
SWOT Analysis
Global Challenges
Industry Analysis
Competitors
Recommendations
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Introduction
Founded:1943 in lmhult, Smland,
Sweden
Headquarters: Leiden, The Netherlands
Industry: Retail (Specialty)
Products: self-assembly furniture
Revenue: $28.6B USD (FY 2007)
Employees: 104,000 (2006)
Website: www.ikea.com

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Introduction
Acronym- I (Ingvar)-Founders first name
K (Kamprad)-Founders last name
E (Elmtaryd)-Farm where he grew up
A (Agunnaryd)-Home village
Logo- Blue & Yellow;
The colors of Swedish National Flag.


1943:
founded in Sweden by Ingvar Kamprad;
1951:
published the first IKEA furniture catalogue;
1955-1956:
designed own furniture
tested to use flat packages for shipping;
2001:
established IKEA Rail


History
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History: first store around the world
1958: in Sweden
1963: in Norway
1969: in Denmark
1973: in Switzerland
1974: in Germany
1975: in Australia
1976: in Canada
1981: in France
1985: in USA
1987: in UK
1989: in Italy
1998: in China
2000: in Russia
265 shopping centers

36 countries

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History: important designs in the past
1963: Marian Grabinski
designed MTP Bookcase.




1974: Olle Gjerloy
Knudsen and Torben
Lind designed SKOPA
Chair.



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History: important designs in the past
1985: Niels Gammelgaard
designed MOMENT Sofa.




1994: KUBIST Storage
Units appeared.



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Current Profile

Focus on kitchen and bedroom

Sleep Revolution

High-quality, Lower-price products
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Internet business

Environmental protection
Future Profile
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Mission statement

The IKEA vision globally is to create a
better everyday life for the many.

At IKEA Tempe we are dedicated to giving
to the local community will being
regarded by out customers and co-
workers as a social responsible company"

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International business
IKEA stores around the world
"United States, Denmark, Germany, Spain, Israel, Saudi Arabia,"

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Production

1)Long terms commitments with its suppliers

2)IKEA recycles its five most waste materials

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Marketing

Your partner in better living. We do our part, you
do yours. Together we save money

1)internet, radio, T.V., newspapers, magazines
2)catalog is the main marketing instrument

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Marketing
Sales by region
Asia + Australia 3 %
North America 16 %
Europe 81 %
Top 5 sales countries
Germany 19 %
USA 11 %
United Kingdom 11 %
France 9 %
Sweden 8 %
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Labor

1)2006 IKEA had over 104,000 employees

2)many freedoms for its employees

3)two weeks of training
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SWOT Analysis

Strengths
1) Marketing strategy
2) Brand recognition
3) Financially
4) Low cost/ wide range of products
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SWOT Analysis

Weaknesses
1) No main competitors

Opportunities
1) Carpets

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SWOT Analysis

Threats
1) competitors
2) new fashions, fads, or cultures
3) recessions and declining economies
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SWOT Analysis

Threats
1) competitors
2) new fashions, fads, or cultures
3) recessions and declining economies
Global Challenges



Other markets China:
Price: low high
Service: DIY have bulk products
delivered and installed
Design: fashion and short-term ; tend
to be discarded
durable and practical
Transportation: congestion, chaos congestion, chaos
Language: product name: cause original
meaning distortion even
lawsuit
cause original meaning
distortion even lawsuit
Global Challenges



Europe United States
products: short-term commodities have a habit to attach to old
stuff, not change frequently
Lifestyle: hang up (Italy) ;
small dining table and sofa;
subdued Scandinavian color
(Sweden)
folded;
big dining table and sofa;
bold color (Californias
Hispanics)
Transportation: congestion, chaos congestion, chaos
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Industry Analysis
Western furniture history
The classical world---practicability & durability
Ancient Greece, Roman, Turkey, Egypt
The dark ages--heavy, oak, ornamented with carved design
The Baroque and Rococo---the nineteenth century
the transitional furniture
Asian furniture history
China----carved wood and bamboo, heavy lacquers
Japan ----minimalist style, wood, high-quality craftsmanship
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Industry Analysis
Trends:
Color--bright color
Form --follow the nature
Materials--textured surfaces and
transparent plastic
RTA--ready-to-assemble furniture



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Industry Analysis

Global issues
Global remaining forest
IKEAs environment responsibility
IKEA does not accept timber, veneer,
plywood or layer-glued wood from intact
natural forests or from forests with a
clearly defined high conservation value.


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Original intact forest extent
Current forest cover
Remaining frontier forest
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Competitors

Euromarket Designs Inc.

Galiform plc

Wal-Mart Stores, Inc.


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Competitors (1)

Euromarket Designs Inc. ( Crate & Barrel )
Company type: Private
Founded: 1962 Chicago, Illinois, USA
Headquarters: Northbrook, Illinois, USA
Industry: Retail
Products: Housewares, Furniture
Sales (mil.):$ 401.3 (2007)
Employees: 6,000 (2007)
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Competitors (1)
Compare to IKEA:
by revenue and employee, far behind;
similar management style, marketing
strategy,
stores, online sales, catalog
Characteristic:
two sister stores: CB2 is for young adults
and the Land of Nod is for children.

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Competitors (2)
Galiform plc
Company type: Public
Founded: 1964: MFI 2006: Galiform plc
Headquarters: London
Industry: Furniture Trade
Products: Kitchens & Bedrooms; Doors &
Joinery
2006 Sales (bil.): $2.5
2006 Employees: 10,728

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Competitors (2)

Compare to IKEA:
by revenue and employee, far behind; better
than Crate & Barrel
focuses on kitchen and bedroom products
in the UK and France markets.
Characteristic:
Cuisine Stores

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Competitors (3)
Wal-Mart Stores, Inc.
Company Type: Discount department
store/Public
Founded: 1962
Headquarters: Bentonville, Arkansas, USA
Products: Discount stores, hypermarkets
Slogan: Save Money, Live Better.
2007 Sales (bil.): $348.6
2007 Employees (mil): 1.9

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Competitors (3)

Compare to IKEA:
by revenue and employee number, Wal-Mart,
biggest public company; IKEA, private
extensive products, furniture is only a small
portion
not a direct competitor

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Short-term Recommendations

(1)Classify product standards

(2)Carpets
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Long-term Recommendations

Design a furniture layout simulation
in CD-ROM for each catalogue (need technology)
--three-dimensional(3D)
--pre-design at home
--save shopping time
Home
-Is the most important
place in the world!
www.ikea.com
East, West, Home is the Best
Vinayak chennuri Ankita guruda Jatin thomas Prathamesh patil
Thank you
Arvind Manisha