Ikea history and business strategy

Martina Rucco PittaccioCS110Professor ScaramastraFinal project

IKEA HISTORY AND BUSINESS STRATEGY

INDEX Introduction & History

IKEA’s LayoutCompany Analysis - S.W.O.TIndustry Analysis

IKEA’S Competitors1. USA2. CHINA3. FRANCE

Environmental Awareness

HISTORY OF IKEA

1943 IKEA was founded by Ingvar Kamprad

1951 The first catalog was published

1958 The first IKEA store opens in Sweden

1963 IKEA arrived in Europe

1985 IKEA arrived in USA

1990 The first environmental policy

1997 IKEA website & Children’s IKEA

1998 IKEA arrived in China

2001 IKEA rail

2002/2006IKEA increased 50% of sales

2007/2009 IKEA riched1000000 custumers

2010/2014 IKEA hired 20.000 people

INTRODUCTION AND CURIOSITIESAcronym- I (Ingvar)-Founder’s first name K (Kamprad)-Founder’s last name E (Elmtaryd)-Farm where he grew up A (Agunnaryd)-Home villageLogo- Blue & Yellow; The colors of Swedish National Flag.

COMPANY ANALYSIS- S.W.O.T.StrengthsStrong brand recognition Various operationsEstablishedVertical integrationProduct differentiation

Weaknesses

Dependency on Europe (Number of shops in Europe)

Recalls on IKEA products

S.W.O.T.Opportunities

1. Online retail shopping2. Expansion3. Electrical market

Threats

1. Competition

2. Increases in steel prices4. Swedish food market

INDUSTRY ANALYSIS Balance sheet of 2013/4 – approximately increase of 13%Future trends:

- Internet vs. Stores- TV monitor

Global issues: - Furniture Stores take too much space- Products’ Names

IKEA’S COMPETITORSo U.S. Competitor: Euromarket Design, Crate and Barrel

o France Competitor: Conforama

o China Competitor: Qingdao BOFA Furniture Company Limited

IKEA IN UNITED STATES1. 34 current IKEA locations

2. Adding additional 3 locations soon

3. Original IKEA in Philadelphia in 1985

4. On Fortune 100 Best Companies to Work For

IKEA SHOPS IN USA

IKEA in China•4 stores

Consumers•Price•Services•Materials

Competitors

•B&Q

•HomeDepot

•Illinois

IKEA IN FRANCE

I. IKEA: a fashion brandII. A unique experienceIII. Convenient services

For more info click hereBegin With IKEA Commercial

ENVIRONMENTAL AWARENESS

LED Lighting

Energy-saving appliances

Water-saving Taps

IKEA and WWF

IKEA Soft Toy Campaign Charging for plastic bags