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Presentation prepared by

Loginova Marina, Alikhanyan Margarita, Gorban Daria, Ten Ekaterina,


Bokareva Kristina and Shepel Dmitrii.
Group 1390, Management Department.

Change management
Agenda

1. General information
2. Point of life cycle
3. Principles of quality
management & competitive
advantages
Information about the
company

Founded in Sweden in 1943


Founder by Ingvar Kamprad
Industry: Retail
Key people: Peter Agnefjll (Chairman and CEO)
Products: self-assembly furniture
Map of IKEA stores
around the world

Key figures

Total revenue 2003 - 2014


To create a better everyday life for the many
people
Our business idea is to offer a wide range of well-designed, functional
home furnishing products at prices so low that as many people as
possible will be able to afford them.
Quality products People & When people
at low prices Planet Positive grow, IKEA
grows too
Point of life cycle
Innovation Prime =
Product Balance between control
devisification and flexibility
Strong entry Why?
Growing conditions
barriers
Customer
relationship
management
Change
management

Market
leaders
IKEAs competitive advantages
Standardi
zation

Low
Sales&Ma
manufact
rketing
uring cost

Distinctiv
Brand
eness in
image
design
Principles of TQM in IKEA

Bench
Quality
circles
markin
g

JIT
Standards and principles of
management
Structure
The founder

Ingvar Kamprad
Group management
Ansoff Matrix
BCG Matrix: IKEAs position

Relative Market Share


Market Growth Rate

High Low

Hig
* ?
h

Lo
Cash Cow Dog
w
BCG Matrix: IKEAs products
Porters Five Forces model

Wide choice of
alternatives

Numerous
factories
around the
globe

No too many
products and
Low
services
available that
can
Intense substitute
the demand
Hofer Matrix

Strong Average Weak

Embryonic Decoration
(development)
Coming to market Baby and childrens
(growth) products

Market shocks Beds & mattresses Bathroom storage


(competitive
pressure)
Maturity and Kitchen cabinets &
market saturation appliances
Decline and exit of Clothes storage
market
ADL Matrix

Competitive
position

Strong. The market share is strong and


stable, regardless of what the competition is
doing. Industry
maturity
Maturity stage. The market and market
shares are stable, there is an established
customer base and the price is lowered
because of the growing competition.
Our change

To create new line of


production repair
materials
Advantages

It will:
Increase competitiveness of IKEA
Attract new customers
Increase customer loyalty
Expand consumer capability
Increase profit of the company
Disadvantages

Quite expensive
Special features

IKEAs peculiar design


Special features

Qualitative material
Special features

Brand name recognition


Kotters 8 stage change model
Thank you very much for your
attention!