IKEA Presented by: Danny Reyes, Candy Zhong,
Feifei Zhong , Michelle Chen.
Support by sofadiary.com
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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