Brief introduction about ikea

IKEA Presented by: Danny Reyes, Candy Zhong,

Feifei Zhong , Michelle Chen.

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Overview        

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

Introduction       

Founded:1943 in Älmhult, Småland, 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)-Founder’s first name K (Kamprad)-Founder’s last name E (Elmtaryd)-Farm where he grew up A (Agunnaryd)-Home village Logo- Blue & Yellow; The colors of Swedish National Flag.

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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: 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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Future Profile  Internet business  Environmental protection

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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 worldďźš "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

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Global Challenges Other markets

China:

Price:

low

high

Service:

DIY

have bulk products delivered and installed

Design:

fashion and short-term ; tend to durable and practical be discarded

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 (California’s Hispanics)

Transportation:

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

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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  IKEA’s 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

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www.ikea.com

Danny Reyes

Michelle Chen

Candy Zhong

Home -Is the most important

place in the world!

East, West, Home is the Bestďź

Thank you ď Š

Feifei Zhong