IKEA

Presented by:
Danny Reyes,
Candy Zhong,

Feifei Zhong ,
Michelle Chen.

Overview

Introduction
History
Current Situation
SWOT Analysis
Global Challenges
Industry Analysis
Competitors
Recommendations
2

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
3

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.

History
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: first store around the world

1958:
1963:
1969:
1973:
1974:
1975:
1976:
1981:
1985:
1987:
1989:
1998:
2000:

in
in
in
in
in
in
in
in
in
in
in
in
in

Sweden
Norway
Denmark
Switzerland
Germany
Australia
Canada
France
USA
UK
Italy
China
Russia

265 shopping
centers
36 countries

History: important designs in the past

1963: Marian
Grabinski designed
MTP Bookcase.

1974: Olle Gjerloy

Knudsen and Torben
Lind designed SKOPA
Chair.
7

History: important designs in the past

1985: Niels
Gammelgaard
designed MOMENT
Sofa.

1994: KUBIST
Storage Units
appeared.
8

Current Profile
Focus on kitchen and bedroom
Sleep Revolution
High-quality, Lower-price
products

Future Profile
Internet business
Environmental protection

10

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"

11

International business

IKEA stores around the world

"United States, Denmark, Germany, Spain, Israel, Saudi
Arabia,"

12

Production
1)Long terms commitments with its
suppliers
2)IKEA recycles its five most waste
materials

13

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

14

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 %
15

Labor
1)2006 IKEA had over 104,000
employees
2)many freedoms for its employees
3)two weeks of training

16

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

17

SWOT Analysis
Weaknesses
1) No main competitors
Opportunities
1) Carpets

18

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

19

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

20

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)

Transportatio
n:

congestion, chaos

congestion, chaos

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

23

Industry Analysis
Trends:
Color--bright color
Form --follow the nature
Materials--textured surfaces and
transparent plastic
RTA--ready-to-assemble furniture

25

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.

26

Original intact forest extent

Current forest cover

Remaining frontier forest

27

Competitors
Euromarket Designs Inc.
Galiform plc
Wal-Mart Stores, Inc.

28

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)

29

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.

30

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

31

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

32

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

33

Competitors (3)
Compare to IKEA:
by revenue and employee number, WalMart, biggest public company; IKEA,
private
extensive products, furniture is only a
small portion
not a direct competitor

34

Short-term Recommendations
(1)Classify product standards
(2)Carpets

35

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

36

www.ikea.com

Danny Reyes

Michelle Chen

Candy Zhong

Home
-Is the most important
place in the world!
East, West, Home is the
Best

Thank you

Feifei Zhong