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IKEAs Business

IKEA is an international home productcompany that designs and sells readyto assemble furniture appliances and

home accessories

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IKEAs Founded

Furniture IntroductionFurniture Catalogue

1965195819519561955195!19"19"!19#6 1951

IKEA designs its ownFurnitureIKEA introduces Flatpackages IKEA stores open at

Almhult Stockholm

IKEAs Timeline

IKEAs Company History *

$%ource& '''(i)ea(com

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A!KETI"# A"A$%SIS

%*+,- .E%, and the /ar)eting /i0

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I N T E R N A L E X A M

EXTERNALEXAM

SWOT

W

O

T

S

STRENGTHS *ide range of products and

styles heap and a2ordable +ne stop shop Easy shipping and

transportation Eco friendly and recycling of

products

3unctional design ofproducts Appealing shopping

e0perience

OPPORTUNITIES 4ntapped mar)ets li)e middle

east and Asian countries Better ad ertisements +nline sales emand for greener and

en ironment friendly products

WEAKNESSES Assembly of furniture 7et to in ade upcoming

global mar)ets .roducts dont last long .roduct dimensions

unsuitable for globalmar)ets

Ad ertisements in the formof catalogues mostly

THREATS

+rgani ed sectors li)e *al/art- + ce epot- %taples-etc(

4norgani ed sectors li)e local

manufacturers and carpentrystores

ompetitors opting for similardesigns 'ith a contemporaryt'ist to cater to upper class

POSITIVE INFLUENCES

NEGATIVE INFLUENCES

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3 I .olicies :abor la's ,a0es and duties En ironmental :a'sFurnitu

re

arket

&olitical

&

;ecession reducesdisposable income

and hence thedemand

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'&(s arketing i)

arketing i)

&roduct

&rice

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&roduct &rice i)%,7:E

.;I E;A@ E

%candina ian

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Finding Smarter ways

to make FurnitureStrategy ollowed +y IKEA

.rice

Cuality

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ImplementationStepsEstablish ;etail .rice

%elect /anufacturer

etermine thematerial used

esign .rocess

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Step ,- Esta+lish !etail &rice

4sing the matri0- IKEA 'ould

set the price range( It 'ould sur ey the competition

to establish a benchmar) and

then sets its o'n price point!D 5D lo'er than ri als(

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Step .- Select anu acturer

/ore than 18DD manufacturers inmore than 5D countries

Build long term relationships IKEA circulates a description of

proposed productFs speciGcations andtarget cost and encouraged them tocompete for the production pac)age

%ometimes it might ha e di2erentproduct component from di2erentsupplier

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Step /- 0etermine thematerial used

one by IKEA engineers 3ocus on cost e ciency 4sing di2erent types of 'ood

for a single 'ooden product 4sing high Huality materials on

furniture surfaces that 'ere

isible and most li)ely undergostress 4sing lo' Huality material on

surfaces that 'ere lo' stressand less isible to the customer

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Step '- 0esign &hase 4se internal competition to

select a designer 3lat pac)aged bo0es to ma)e it

easier for consumers totransport the furniture home sa e shipping costs

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'&(s arketing i)

arketing i)

&roduct

&rice &lacement

)

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Customer E)perienceat IKEA

Bright and in iting e0perience forcustomers ;esembles /odern ,heme par) 'ith

childcare centers ;estaurants ser ing arious delicacies

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IKEA or kids- %ou shop1 kids play

IKEA pro ides clean feedingand changing rooms for smallchildren

;estaurant has a special menu >ust for )ids

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CommunicationStrategy or

America

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&erceptual ap

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Segmentation

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2ideo .

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Jideo !

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IKEA I"2A0ES A E!ICA

#DD##DD1#DDD199919981991985 /id 199Ds

First store

Companys ortunechanges

!e3enues dou+le45677 mn to 5,8.9+n:

/rd largeststore

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&!; ;TI;" ST!ATE#IES ommitment free approach to furniture L

4nboring M ad ertisement *eb site ad ertisement The $aw o Candor - *hen you admit anegati e- the prospect 'ill gi e you a positi e The $aw o the Category- If you cant be theGrst in a category- set up a ne' category thatyou can be Grst in Additional ustomer facilities& child care-

restaurants and help des)

http://var/www/apps/conversion/tmp/scratch_6/ikea%20lamp.mp4http://var/www/apps/conversion/tmp/scratch_6/ikea%20lamp.mp4

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I"0IA" F

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&!;=$E S FACE0 =%I"0IA" F

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%ource& http

&OOonline('s>(comOne'sOarticlesO%B1DDD1"#"1# 88 !#"#669D"5 8"588"D# 9D856"

IKEA I"2A0ES I"0IA

http://online.wsj.com/news/articles/SB10001424127887324266904578458840277908564http://online.wsj.com/news/articles/SB10001424127887324266904578458840277908564http://online.wsj.com/news/articles/SB10001424127887324266904578458840277908564http://online.wsj.com/news/articles/SB10001424127887324266904578458840277908564http://online.wsj.com/news/articles/SB10001424127887324266904578458840277908564http://online.wsj.com/news/articles/SB10001424127887324266904578458840277908564

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arket0e3elopment 0i3ersi>cation

/ar)et.enetration

.roducte elopment

.roducts Q %er ices

/ a r ) e t s

E0isting @e'

E 0

i s t i n g

@ e '

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IKEAs communicationstrategy$

/edia hannels co ered ,J .rint

igital .ull %trategy %; initiati es

%ource&

http&OO'''(li emint(comO/oneyO>I# msK5st ,n61yy*4@OI)eas consumer challenge in India(html

http://www.livemint.com/Money/jI27GvmsK5stzTn61yyWUN/Ikeas-consumer-challenge-in-India.htmlhttp://www.livemint.com/Money/jI27GvmsK5stzTn61yyWUN/Ikeas-consumer-challenge-in-India.htmlhttp://www.livemint.com/Money/jI27GvmsK5stzTn61yyWUN/Ikeas-consumer-challenge-in-India.htmlhttp://www.livemint.com/Money/jI27GvmsK5stzTn61yyWUN/Ikeas-consumer-challenge-in-India.html

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