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INTRODUCTION
IKEA was founded by Ingvar Kamprad a native of Sweden in
1943, when the founder, at the age of 17 was given money
by his father in return for doing well in his studies.
The company initially sold basic items such as pens, picture
frames, table runners, wallets, jewelry, nylons stockings and
watches, at a low price.
The main business are manufacture and selling of a wide
range of home furnishing products at an affordable price
The company has 230 stores, with operations carried out in
over 42 countries with well over 70 000 employees.
VISION
The vision at IKEA is to
create a better everyday life for
the many people
IKEA STRATEGY
Ikea's forward-thinking strategy made it
the top furniture seller in the world.
Key Points of their Strategy are:
Solving the worst part of buying furniture.
Hitting the right demographic. (Resonate with
young people)
Not expensive, but not too cheap.
Stores are a destination.
INTERNATIONAL
Increased market size:
They are entering to new
STRATEGY
A C T I V I T Y I M P L E M E N TAT I O N BY I K E A
Inbound
Logistics
Outboun
d
Logistics
Operatio
ns
I M P L E M E N TAT I O N BY I K E A
Marketin
g and
Sales
Services
Procurement
I M P L E M E N TAT I O N BY I K E A
Hierarchical organizational structure.
Large scale stores in size.
High level of commitment to HR practices
Effective staff training and development programs
Research and development activities initiated in
Sweden.
Extensive use of information technologies in various
business processes and research and development.
No need for raw materials as IKEA does not produce
own brand products
Long strategic relationships with all suppliers
SWOT
A strong global
brand which attracts key consumer
Analysis
groups.
Strength
s
Weaknes
ses
SWOT
Analysis
Opportuniti
es
Weaknesse
s
Intensifying competition
Growth of average consumer income
Bargaining
power of
suppliers
High
Factories
around the
globe.
Maintain long
term
relationships.
Bargaining
power of
buyers
High
Wide choice
Imported
Furniture
Threat of
substitute
products
Rivalry among
competing
firms
Low
No other products
substitute Furniture.
Constant Demand
High
Highly competitive
industry.
Presence in China and
Japan to sustain
competitive advantage.
COMPETITIVE
EDGEof Scale Standardization
Entering in Economies
In Economies of Scope Furniture and Restaurant Share
Facilities
Economic Design Inbound and Outbound Logistics
Great Network of Supply More than 1300 suppliers in 55
countries
Large Warehouse Showroom in Sub-Urban centers
Customers included in the value chain minimum staff
Strength of Brand Image and Name, Global Marketing
Strategy
Distinctiveness in design, promoting designers concepts,
eco design
CONCLUSION
IKEAs vision has contributed in improving lives for
the many people in practicing sustainable
environment.
IKEA plays a vital role in ensuring its products are
sustainable and takes the leadership role to
educate its suppliers to understand how and why
sustainable production is vital.
These factors are the key differentiators that has
made IKEAs different from its competitors. IKEA is
one of the trustworthy company that is responsible
for their product and its impact on the