ETSITgroupETSITgroup

Basic InformationBasic Information

wide rangewide range well-designedwell-designed functional functional

home home furnishing furnishing products products

low prices low prices 

LocationLocation

44 countries around the world 44 countries around the world

SizeSize

41 trading service offices in 30 countries41 trading service offices in 30 countries about 1,380 suppliers in 54 countriesabout 1,380 suppliers in 54 countries

HistoryHistory story begins in 1926 in Swedenstory begins in 1926 in Sweden

1960s-1970s concept starts to 1960s-1970s concept starts to take shape take shape

1980s IKEA expands dramatically 1980s IKEA expands dramatically into new markets such as USA, into new markets such as USA, Italy, France and the UK Italy, France and the UK

1990s Children's IKEA is 1990s Children's IKEA is introduced introduced

2000s expand to Japan and 2000s expand to Japan and Russia, environmental productsRussia, environmental products

CompetitorsCompetitors

Some in each Some in each countrycountry

MOBLERONE, MOBLERONE, MUEBLES LA MUEBLES LA FÁBRICA, ART FÁBRICA, ART MOBEL in MOBEL in SpainSpain

Business sectorBusiness sector

Wood-based furniture and wooden componentsWood-based furniture and wooden components

Furniture Furniture designed to be designed to be

assembled by the assembled by the consumer consumer

reduce costs (shipped reduce costs (shipped unassembled, …)unassembled, …)

flat-pack distribution flat-pack distribution methods allow for easier methods allow for easier transport via public transport via public transport from the store transport from the store to a customer's home to a customer's home

Manufacturing Manufacturing largely manufactured in developing countrieslargely manufactured in developing countries

little production actually takes place in Sweden little production actually takes place in Sweden

most of its products, the final assembly is performed most of its products, the final assembly is performed by the end-user (consumer)by the end-user (consumer)

Product namesProduct namesOrigen in SweedenOrigen in Sweeden

DUKTIG (meaning: good, well-DUKTIG (meaning: good, well-behaved) is a line of children's behaved) is a line of children's toystoys

BILLY (a Swedish masculine BILLY (a Swedish masculine name) is a popular shelfname) is a popular shelf

DINERA (meaning: (to) dine) for DINERA (meaning: (to) dine) for tablewaretableware

KASSETT (meaning: cassette) for KASSETT (meaning: cassette) for media storage.media storage.

SKÄRPT (meaning: sharp or SKÄRPT (meaning: sharp or clever) is a line of kitchen knives clever) is a line of kitchen knives

Good design and Good design and functionfunction

good designgood design good function good function right qualityright quality affordable priceaffordable price

not easy combiningnot easy combining

constantly looking constantly looking for for smart solutionssmart solutions to meet our to meet our customers needs. customers needs.

Pareto PrinciplePareto Principle

80-20 rule or the law of the vital few80-20 rule or the law of the vital few

an observation that 80% of the effects an observation that 80% of the effects come from 20% of the causes come from 20% of the causes

Use of Pareto PrincipleUse of Pareto Principle sales sales

calculating all calculating all discretionary discretionary expensesexpenses

quality and process quality and process improvement projects improvement projects

comparing the comparing the recourses required to recourses required to accomplish each (time, accomplish each (time, money…) with the money…) with the benefits gainedbenefits gained

FlowchartFlowchart picture of the picture of the

separate steps of separate steps of process in process in sequential order sequential order

the process the process described can be a described can be a manufacturing manufacturing process, an process, an administrative or administrative or service process, a service process, a project plan project plan

Cause and Effect DiagramCause and Effect Diagram

the fishbone diagram identifies many the fishbone diagram identifies many possible causes for an effect or problempossible causes for an effect or problem

used to find problem sources or solutions used to find problem sources or solutions

Product-focused strategyProduct-focused strategy plants producing the products plants producing the products

are organized by product are organized by product

high volumes of Ikea products high volumes of Ikea products produced to be sold in stores produced to be sold in stores worldwide (large quantities, worldwide (large quantities, little variety)little variety)

low product flexibility low product flexibility

high equipment utilization high equipment utilization

Analysis and Design questionsAnalysis and Design questions Is the process designed to achieve Is the process designed to achieve competitive advantage in terms of competitive advantage in terms of differentiation, response, or low cost?differentiation, response, or low cost?

designed to achieve designed to achieve competitive competitive advantage in low advantage in low costcost

saving money in saving money in packaging productspackaging products

Does the process eliminate steps that Does the process eliminate steps that do not add value? do not add value?

creating a component of the creating a component of the product that has a dual product that has a dual purposepurpose

eliminated a packaging step eliminated a packaging step that did not increase the that did not increase the value of the productvalue of the product

using the lampshade as part using the lampshade as part of the processing and of the processing and packaging steppackaging step

cut out additional costs such cut out additional costs such as purchasing packaging as purchasing packaging materialmaterial

Will the process win orders? Will the process win orders?

possibly new process will possibly new process will be popular among those be popular among those with an environmental with an environmental concernconcern

becoming increasingly becoming increasingly important in this day and important in this day and age for companies to be age for companies to be socially responsible by socially responsible by reducing waste and reducing waste and energy consumptionenergy consumption

new process will new process will potentially increase the potentially increase the social value of the social value of the companycompany

Tech sideTech side a lot of technical tools to design a lot of technical tools to design

and manufacture each productand manufacture each product

Design Technology Computer-Design Technology Computer-Aided Design (CAD)Aided Design (CAD)

Robots: perform monotonous and Robots: perform monotonous and dangerous tasks and move wood, dangerous tasks and move wood, what is really heavywhat is really heavy

Automated Storage and Retrieval Automated Storage and Retrieval Systems (ASRSs: These systems Systems (ASRSs: These systems are found in inventory and test are found in inventory and test areas of each storeareas of each store

Possibilities of InternetPossibilities of Internet good channel to show our productsgood channel to show our products

not possible to carry out a purchase from homenot possible to carry out a purchase from home

lot of items whose size is very large and the costs of lot of items whose size is very large and the costs of transport could rise a lottransport could rise a lot

in the future a lot of little size products without post in the future a lot of little size products without post costscosts

www.ikea.es

TwitterTwitter great tool for providing IKEA great tool for providing IKEA

with ongoing tools, resources with ongoing tools, resources and tips on IKEA’s company of and tips on IKEA’s company of expertise expertise

quickly finding vendors, quickly finding vendors, employees, tech help and employees, tech help and partners that match IKEA partners that match IKEA company company

tracking all kinds of shipments tracking all kinds of shipments with several different shipping with several different shipping companies companies

asking what products clients asking what products clients like, recommending new like, recommending new products, inviting to the products, inviting to the company upcoming events company upcoming events

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