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1 IKEA Presented by: Danny Reyes, Feifei Zhong , Candy Zhong, Michelle Chen.

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

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

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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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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

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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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Internet business

Environmental protection

Future Profile

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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 world:"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 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

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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

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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, catalogCharacteristic: 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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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