Ikea Introduction

In: Business and Management

Submitted By vishu123
Words 738
Pages 3
Introduction
IKEA, founded in 1943, is a world famous home furniture company whose vision is “To provide better life for everyone”. The brand provides modern and fashionable low cost furniture for over 38 countries with 301 stores. It is the largest furniture retail chain in the world and boasts a range of 12000 products, including home furniture and accessories. What’s more, it’s concern for people and environment lead to excellent use of raw material and energy, which result in their green targets and the overall environment. We are going to analyse the difficulties in expansion in the U.S. market and use a SWOT analysis to assess the circumstances that affect the same. In addition, we would give our proposed strategy and the three-year plan both in U.S and Indian market.
IKEA’s expansion plan in U.S, faced a lot of problems. Firstly, the economic recession had a deep impact on the home furniture industry in America. For example, the home furnishings sector decline strongly in 2008 by -7.9% to 94.58 billion dollars. Secondly, the demand for customization and convenience is strong in U.S. Because unlike people in other countries, the U.S. people prefer to store most of their clothes folded while Italians like to hang. They were buying vases to drink because of the too small glasses. In short, they want more comfortable sofas, higher-quality textiles, bigger glasses and more spacious entertainment units. And the do-it-yourself furniture takes time to assemble, which leads to inconveniences. Along with that, availability of net promotion and TV advertising would be another problem. Considering the popularity of internet and TV, it is crucial for IKEA to put more effort on that. In addition, American people regard the low price product as low quality to some extent, which will affect the expansion of IKEA products, they pursuit of high quality.
So, the economic…...

Similar Documents

Ikea

...$${tr&-Ft#uF* *tuaffFi* €**$*r IKEA may be the world's most successfuel lobal retailer. Established by Ingvar Kamprad in Sweden in 1943 when he was just 17 years old, today the home.furnishing superstore has grown into a global cult brand with 230 stores in 33 countries that host 410 million shoppers a yeara nd generates aleso f €14.8 billion ($12.2b illion). Kamprad himself, who still owns the private company, ls rumored to be the world's richest man. IKEA's target market is the giobal middle class who are looking for low-priced but attractively designed furniture and household items. The company the same basic formula woridwide: Open larg." p."p.l.l-", house stores festooned in the blue and yellow colors of the Swedish flag that offer 8,000 to i0,0OO items, from kitchen cabinets to candlesticks. Use wacky promotions to drive traffic into the stores. Confisure the interior of the stores so that custom..s h"rr"e ro pass through each department ro get to rhe checkout. Add restaurants and child care facilities so that shop. pers stay as long as possible. Price the items as lo, n, possible. Make sure that product design reflects the simple, clean Swedish lines thar have b".o-. IKElt's trademark. And then watch the results-cusromers who enter rhe store planning to buy a $40 coffee table and endup spending $500 on everything from storage units to kitchenware. IKEA aims to reduce the price of its offerings by Z to 3 percent per year, whlch requires......

Words: 393 - Pages: 2

Ikea

...INTERNATIONAL BUSINESS - CASE STUDY K Global Retailer IKEA may be the world’s most successful global retailer. Established by Ingvar Kamprad in Sweden in 1943 when he was just 17 years old, the home-furnishing superstore has grown into a global cult brand with 230 stores in 33 countries that host 410 million shoppers a year and generated sales of $14.8 billion ($17.7 billion) in 2005. Kamprad himself, who still owns the private company, is rumored to be the world’s richest man. IKEA’s target market is the global middle class who are looking for low-priced but attractively designed furniture and household items. The company applies the same basic formula worldwide: Open large warehouse stores festooned in the blue and yellow colors of the Swedish flag that offer 8,000 to 10,000 items, from kitchen cabinets to candlesticks. Use wacky promotions to drive traffic into the stores. Configure the interior of the stores so that customers have to pass through each department to get to the checkout. Add restaurants and child care facilities so that shoppers stay as long as possible. Price the items as low as possible. Make sure that product design reflects the simple, clean Swedish lines that have become IKEA’s trademark. And then watch the results–customers who enter the store planning to buy a $40 coffee table and end up spending $500 on everything from storage units to kitchenware. IKEA aims to reduce the price of its offerings by 2 to 3 percent per year, which requires......

Words: 650 - Pages: 3

Ikea

... | | | | Table of contents 1. Introduction.......................................................................................3 2. Executive Summery………………………………………………..4 3. Crisis Management………………………………………………...5 4. Effective Management of information………….…………..…6&7 4. Communication Strategy………………………………..…...…8&9 5. Effective Crisis Management…………………………….………10 6. Public Relations steps…………………………………….………11 7. Product Recall…………………………………………………….12 8. Ikea Questionnaire………………………………………………...13 9. Conclusion…………………………………………………….…..14 10. Bibliography……………………………………………………...15 11. Appendices………………………………………………………...16 Introduction This report aims to investigate that public relations is an important business function to an organization. The research will examine public relations as an essential function of crisis management. The purpose of this report is to investigate that major organizations such as Johnson and Johnson, Ford and Firestone and IKEA, would use the corrective public relations strategies, to have a positive outcome on a crisis situation. The author will examine the different public relation strategies each company used to handle their individual crisis. In examining these strategies the report will......

Words: 3085 - Pages: 13

Ikea

...Question 1. - What has allowed IKEA to be successful with a relatively standardised product and product line in a business with strong cultural influence? Did adaptations to this strategy in the North American market constitute a defeat to their approach? Background and the "Ikea concept" World's largest home furnishings retail chain. Achieved international expansion in 3 major phases. Summarised its mission as to offer a wide variety, good design, good value, for "young people of all ages". Determination to maintain a standardised product strategy. Does not own manufacturing facilities. Ikea owns distribution and designs furniture. Manufacturers are subcontracted. Cost leadership strategy through high volume production and standardised items. Ikea consumers expected to supply their time for assembling work after purchase, thus becoming "prosumers". What has allowed IKEA to be successful? They were customer focused. As they were not selling through dealers - could obtain feedback directly from customers. Also, Ikea sees itself not so much as a retailer but as a central star of services. What are these universally appealing values and why were these, together with the standardised assortment, successful in so many countries worldwide? It appears that the countries Ikea entered through international expansion had already had a growing number of potential customers who were not tied to a traditional furniture image. They preferred practicality, good value, simplicity...

Words: 1689 - Pages: 7

Ikea

...CONTENT Introduction – IKEA’s background……………3 IKEA’s Supply Chain Analysis……………….3-4 IKEA’s Logistics Activities……………………4-6 IKEA’s Internal Environment…………………6-7 IKEA’s External Environment…………………8 Problems and Solutions……………………….8-10 Conclusion…………………………………….11 References…………………………………….12 Introduction Since first founded in 1940s, with its mission statements to “create a better everyday life for the many people”, IKEA’s business idea has achieved great success. In this report, we would mainly focus on IKEA’s logistics function, We begin by analyzing IKEA’s supply chain, adopted strategy, the internal and external environment. Second, we investigate into IKEA’s logistics operations. At the last part, we discuss the problems of business and logistics aspect IKEA faces, and give our advices to solve them. IKEA’s Supply Chain Analysis For the IKEA’s supply chain, it includes suppliers, manufacturers, retailers and customers. Firstly, IKEA has thousand amounts of suppliers provide raw materials and components for the manufacturing acticities globally. It also has cooperation with a number of suppliers as joint owners or financiers in Poland, Slovakia, Russia and China such as Konakovo factory (Russia) providing four different items for IKEA’s Moscow store, Priozersk factory (Russia) providing five different chair models, RPOFIm (Poland) providing three different types of office chairs etc. This can ensure the continuous flow of manufacturing......

Words: 3260 - Pages: 14

Ikea

...com   28/12/2011             Supervised  by   Dr.  Sundaram  Nataraja     © 2011 by Osama Albarrak. All rights reserved   Introduction:            In  this  case,  I've  studied  the  internationally  known  home  furnishing   retailer,  which  is  (IKEA)  the  largest  furniture  retailer  in  the  world.  The   purpose  of  the  case  study  is  to  analyze  the  objectives  and  strategies  used  by   IKEA,  analyze  the  company  financially,  SWOT  analyzing  and  discuss  major   issue  that  the  company  faced.         About:            IKEA  is  a  privately-­‐held,  international  home  products  retailer  that  sells   flat  pack  furniture,  accessories,  and  bathroom  and  kitchen  items  in  their   retail  stores  around  the  world.  The  company,  which  pioneered  flat-­‐pack   design  furniture  at  affordable  prices,  is  now  the  world's  largest  furniture   retailer.  IKEA  was  founded  in  1943  by  17-­‐year-­‐old  Ingvar  Kamprad  in   Sweden  and  it  is  owned  by  a  Dutchregistered  foundation ...

Words: 2762 - Pages: 12

Ikea

...Ikeas questions 1. Are you aware of the sustainability strategy of IKEA? Yes, I am. 2. What comes to your mind when you get asked about the sustainability strategy of IKEA? That IKEA is companies that really prioritize the sustainability issue. IKEA works in many ways to be as environment-friendly as possible. From the sustainable products to the ambition that every warehouse have a goal to be self-sufficient. But also by helping local and global charity organisations. 3. When did IKEA start to put a major effort into sustainability and why? - 4. What part of IKEAs sustainability strategy (environmental, social, economical) would you say is most important in your daily working life with the customers or are they equally important? For me I think the most important strategy is the environmental. It is so easy to follow up and everyone can contribute in the everyday life. But of course the other strategies are also very important but I don’t feel that I communicate that strategy with the costumers. 5. Is there any difference in awareness in the different work positions? No not what I have experienced. IKEA has goals and visions that the whole company works towards no matter if you are a worker or manager. 6. How do/did you as a co-worker become aware of your sustainability strategy? * leaflets, reports * training days * dialogue * formal course (ousourced?) (Take whatever fits and provide a detailed answer to that question please) I think that it is a mix of......

Words: 606 - Pages: 3

Ikea

...planning Introduction IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. Today it is the world's largest furniture retailer, recognised for its Scandinavian style. The majority of IKEA's furniture is flat-pack, ready to be assembled by the consumer. This allows a reduction in costs and packaging. IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range is available in all IKEA stores and customers can order much of the range online through IKEA’s website. There are 18 stores in the UK to date, the first of which opened in Warrington in 1987. In July 2009 IKEA opened a store in Dublin too - its first in Ireland. IKEA stores include restaurants and cafés serving typical Swedish food. They also have small food shops selling Swedish groceries, everything from the famous meatballs to jam. Stores are located worldwide. In August 2008 the IKEA group had 253 stores in 24 countries, with a further 32 stores owned and run by franchisees. It welcomed a total of 565 million visitors to the stores during the year and a further 450 million visits were made to the IKEA website. IKEA sales reached 21.2 billion Euros in 2008 showing an increase of 7%. The biggest sales countries are Germany, USA, France, UK and Sweden. In 2008 IKEA opened 21 new stores in 11 countries and expects to open around 20 more in 2009 as part of its strategy for growth. Low prices are one of the cornerstones of the......

Words: 2508 - Pages: 11

Ikea

...Introduction In the television sitcom ‘That 70’s Show’ it is depicted how an appliance store ‘Bargain Bob’ is driven to bankruptcy by the arrival of a large superstore called ‘Price Mart’ in the city of Wisconsin. This superstore provided appliances at a much lower cost than what the small retailers could afford. As a result the small stores had to shut down. While on one hand Price Mart took away some jobs it created many more to compensate for the unemployment created by the closure of a manufacturing plant in the same town. This illustrates a common outcome of the arrival of giant retail companies in otherwise unexplored geographies. This is also touted as the reason why many governments were initially and many still are opposed to the idea of allowing large retail companies to set up shop especially if they are from abroad. One of such large retailer is IKEA which has of late managed to enter the Asian market. IKEA is known all over the world as a low cost high quality provider of ready to assemble furniture. This is about what the company does and not what it stands for. IKEA is a symbol of excellence that serves as an inspiration for entrepreneurs and business houses alike. There are no two views about the successful business model adopted by IKEA which also has a strong value system. There are fewer controversies and lot more accolades for IKEA as compared to other large retail giants. What is more fascinating however is the fact that in spite of being a large and......

Words: 2168 - Pages: 9

Ikea

...1. Introduction I have chosen well known company – IKEA. Before I go any further I am going to shortly describe its products and concept. IKEA is a Swedish company founded in 1943 is multinational group that designs and sells ready-to-assemble furniture (beds, chairs, desks) as well as traditional Swedish food. IKEA owns stores in 43 countries but I am going to focus only on Denmark. The IKEA Concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few. It is achieved by combining function, quality, design and value - always with sustainability in mind. As it a large company it is not always easy to keep up with its service and possible mistakes can occur and therefore it is needed to take into account the competitiveness. 1.1 Problem Statement I am going to answer the following questions and statement; Identification - what are the gaps within service sector in IKEA? Threat – How does IKEA deal with competitiveness in Denmark? Service level –I am going to give suggestions how service could be applied to customers! Methodology In order to complete the task I was given I have to find many kind of detailed information about the company so I can give the answers and analysis of problems that I have stated. IKEA is a large company which give easily access to wide range of information for many kind of topics given. 1.2 An overview of competitiveness First I will have look into......

Words: 1943 - Pages: 8

Ikea

...IKEA Research Paper Team Members: Kevin Agbulos Chandni Shah Francis Mendo Raymond Cheng Ting Yu Course: International Business Professor Alex Settles Date: December 5th, 2013 Table of Contents: I. Introduction (pgs. 1-3) II. International Expansion (pgs. 3-5) III. The IKEA Concept and Business Model (pgs. 5-7) IV. Organization and Management (pgs. 7-8) V. SWOT Analysis (pgs. 9-10) I. Introduction In 1943 Sweden, a Swedish 17-year-old man named Ingvar Kamprad established IKEA. IKEA stands for Ingvar Kamprad Elmtaryd and Agunnaryd. Elmtaryd is the family farm’s name and Agunnaryd is the name of the village where the farm is located. It started off as being a retailer for selling matches, seeds and fish and Kamprad slowly added items such as ballpoint pens, furniture and other household designs. As he started expanding his product portfolio, Kamprad started adopting business strategies such as selling his products via mail order, using a milk truck as transportation, making a furniture catalog and hiring a furniture designer. This designer was Gillis Lundgren who also came up with the self-assembly, flat-packaging technique. This flat-packaging design allowed for more efficient transportation as it cut down on unnecessary space and prevented product damage. The self-assembly technique Lundgren had developed allowed IKEA to essentially forward integrate, cutting out outside retailers. Big retailers responded by turning manufacturers against IKEA...

Words: 3387 - Pages: 14

Ikea

...36 Part 1 $${tr&-Ftu* #F*tuaF ffi*€**$*r IKEA may be the world's most successful elobal retailer. Established by Ingvar Kamprad in Sweden in 1943 when he was just 17 years old, today the home.furnishing superstore has grown into a global cult brand with 230 stores in 33 countries that host 410 million shoppers a year and generate sales of €14.8 billion ($12.2 billion). Kamprad himself, who still owns the private company, ls rumored to be the world's richest man. IKEA's target market is the giobal middle class who are looking for low-priced but attractively designed furniture and household items. The company "ppll", the same basic formula woridwide: Open larg. ."..- house stores festooned in the blue and yellow colors of the Swedish flag that offer 8,000 to i0,0OO items, from kitchen cabinets to candlesticks. Use wacky promotions to drive traffic into the stores. Confisure the interior of the stores so that custom..s h"rr"e ro pass through each department ro get to rhe checkout. Add restaurants and child care facilities so that shop. pers stay as long as possible. Price the items as lo, n, possible. Make sure that product design reflects the simple, clean Swedish lines thar have b".o-. IKElt's trademark. And then watch the results-cusromers who enter rhe store planning to buy a $40 coffee table and endup spending $500 on everything from storage units to kitchenware. IKEA aims to reduce the price of its offerings by Z to 3 percent per year, whlch......

Words: 710 - Pages: 3

Ikea

...Management IKEA Case Study Sharleen Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing its target market and pricing strategy, which is already discussed. This case study further says how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordable for them to purchase IKEA products. Some of IKEA’s main markets are in three of the fastest growing markets such as Russia, US and China. IKEA store bring out products such as furniture to small product like a scented candle. IKEA has over 1300 suppliers in about 53 countries. They further have 12 full time in- house designers with 80 free lancers and other production workers to identify the correct raw materials and produce products efficiently and cost effectively. Primarily, IKEA produced standardized products however; this international strategy did not work for one of its vital markets that is, US. Therefore, they had to emphasize on taking corrective actions. The report also analyses the entry methods used by IKEA and its sustainability. IKEA Case......

Words: 1187 - Pages: 5

Ikea

...IKEA- Case Study Analysis Short Summary : IKEA was founded by Ingvar Kamprad who was a resident of Sweden. He had started doing his business in 1943 at the age of 17. He opened a start up of his own of selling furniture. He had to face heavy resistance initially when he had tried to sell his furniture due to a price war with their main competitors. Finally IKEA made the decision to produce its own furniture due to competitors trying to force suppliers to boycott IKEA products. They also contacted independent makers and sources in Poland to help them out. And their products gained tremendous response. By 1961 , its turnover went over 40 million US $.Slowly yet steadily it expanded . Its features and concepts such as Self Service, Low charges, Cash and Carry added new dimensions to IKEA. By virtue of its impeccable marketing ,planning and other strategic steps, IKEA became world leader in production and export of Swedish furniture. Employees had been given due freedom and bureaucracy was discouraged. In due course of time, it became an international brand with its off shore operations in USA, China, Canada etc. In a nutshell, IKEA followed its basic idea of “Retail in Detail” to provide customer satisfaction and hence it became one of the best companies in the world. Strategy of IKEA • Self Assembly features cuts operational and transportation costs • It concentrated on individual marketing rather than mass marketing • It focussed on diversified business and gave......

Words: 818 - Pages: 4

Ikea

...Page no. | 1. Abstract | 02 | 2. Introduction | 03 | 3. Symptoms | 03 | 4. Indentify the problems | 04 | 5. Generate the alternate solution | 04 | 6. Analyze the alternative | 05 | 7. Recommendation | 05 | 8. Implementation | 06 | 9. Conclusion | 06 | Abstract The IKEA Group, one of the world’s top furniture retailers, has emerged as the fastest-growing furniture retailer in the US. To become one of the leading furniture retailers in such huge and promising market, it has set an ambitious goal to have 50 stores around the US by 2013. IKEA has 4 branches in Los Angeles alone. From 1997 to 2001, the revenues of IKEA doubled from $66 million to $1.27 billion in five years. Looking at the growth rate over the past decade, it seems possible for IKEA to reach this goal. However, IKEA faced several challenges: American’s mind-set, competition from established furniture retailer and different customer’s preference. To address to these challenges, IKEA needs to apply market leader strategy expanding total market size, defending and developing its market share to achieve this goal. . Thus, brand awareness gives IKEA a great power in the US market. However, IKEA’s motto is “low price with meaning”. “With meaning” for US market is different from the other markets. If IKEA cannot capture what US customers want, its offerings will become “low price and no meaning”. Introduction IKEA, the world’s largest furniture......

Words: 1123 - Pages: 5

Turmeric 1000 Curcuma Pepe Nero zenzero 120 cpr Curcumina Piperina Brucia Grassi | [HorribleSubs] Banana Fish - 21 [1080p] mkv | Supernatural VF