IKEA

Presented by: Danny Reyes, Candy Zhong, Feifei 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 lmhult, Smland, 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

Introduction
Acronym- I (Ingvar)-Founders first name K (Kamprad)-Founders last name E (Elmtaryd)-Farm where he grew up A (Agunnaryd)-Home village Logo- Blue & Yellow; The colors of Swedish National Flag.

History
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: 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

History: important designs in the past

1963: Marian Grabinski designed MTP Bookcase.

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

History: important designs in the past

1985: Niels Gammelgaard designed MOMENT Sofa.

1994: KUBIST Storage Units appeared.

Current Profile
Focus on kitchen and bedroom Sleep Revolution
High-quality, Lower-price products

Future Profile
Internet business

Environmental protection

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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 coworkers 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
Price: Service: low DIY

China:
high have bulk products delivered and installed durable and practical

Design:

fashion and short-term ; tend to be discarded congestion, chaos product name: cause original meaning distortion even lawsuit

Transportation: Language:

congestion, chaos cause original meaning distortion even lawsuit

Global Challenges
Europe
products: short-term commodities

United States
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 (Californias Hispanics)

Transportation:

congestion, chaos

congestion, chaos

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 IKEAs 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, catalog Characteristic: 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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www.ikea.com

Danny Reyes

Michelle Chen

Candy Zhong

Feifei Zhong

Home
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