1

IKEAPresented by:Danny Reyes, Feifei Zhong ,Candy Zhong, Michelle Chen.

2

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

3

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

4

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.

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

6

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

7

History: important designs in the past

1963: Marian Grabinski designed MTP Bookcase.

1974: Olle Gjerloy Knudsen and Torben Lind designed SKOPA Chair.

8

History: important designs in the past

1985: Niels Gammelgaard designed MOMENT Sofa.

1994: KUBIST Storage Units appeared.

9

Current Profile

Focus on kitchen and bedroom

“Sleep Revolution”

High-quality, Lower-price products

10

Internet business

Environmental protection

Future Profile

11

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"

12

International business

IKEA stores around the world："United States, Denmark, Germany, Spain, Israel, Saudi Arabia,"

13

Production

1)Long terms commitments with its suppliers

2)IKEA recycles its “five most waste materials”

14

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

15

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 %

16

Labor

1)2006 IKEA had over 104,000 employees

2)many freedoms for its employees

3)two weeks of training

17

SWOT Analysis

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

18

SWOT Analysis

Weaknesses 1) No main competitors

Opportunities 1) Carpets

19

SWOT Analysis

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

economies

20

SWOT Analysis

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

economies

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 (California’s Hispanics)

Transportation:

congestion, chaos congestion, chaos

23

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

25

Industry Analysis Trends: Color--bright color Form --follow the nature Materials--textured surfaces and

transparent plastic RTA--ready-to-assemble furniture

26

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.”

27

Original intact forest extent

Current forest cover

Remaining frontier forest

28

Competitors

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

29

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)

30

Competitors (1)Compare to IKEA: by revenue and employee, far

behind; similar management style,

marketing strategy, stores, online sales, catalogCharacteristic: two sister stores: CB2 is for young

adults and the Land of Nod is for children.

31

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

32

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

33

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

34

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

35

Short-term Recommendations

(1)Classify product standards

(2)Carpets

36

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

Home

-Is the most important

place in the world!

www.ikea.com

East, West, Home is the Best ！

Danny Reyes Michelle Chen Candy Zhong Feifei Zhong

Thank you