2Overview Introduction History Current Situation SWOT Analysis Global ChallengesIndustry AnalysisCompetitorsRecommendations
3Introduction Founded:1943 in Älmhult, Småland, Sweden Headquarters: Leiden, The NetherlandsIndustry: Retail (Specialty)Products: self-assembly furnitureRevenue: $28.6B USD (FY 2007)Employees: 104,000 (2006)Website:
4IntroductionAcronym- 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.
5History 1943: founded in Sweden by Ingvar Kamprad; 1951: published the first IKEA furniture catalogue;:designed own furnituretested to use flat packages for shipping;2001:established IKEA Rail
6History: first store around the world 1958: in Sweden1963: in Norway1969: in Denmark1973: in Switzerland1974: in Germany1975: in Australia1976: in Canada1981: in France1985: in USA1987: in UK1989: in Italy1998: in China2000: in Russia265 shopping centers36 countries
7History: important designs in the past 1963: Marian Grabinski designed MTP Bookcase.1974: Olle Gjerloy Knudsen and Torben Lind designed SKOPA Chair.
8History: important designs in the past 1985: Niels Gammelgaard designed MOMENT Sofa.1994: KUBIST Storage Units appeared.
9Current Profile Focus on kitchen and bedroom “Sleep Revolution” High-quality, Lower-price products
11Mission 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"
12International business IKEA stores around the world："United States, Denmark, Germany, Spain, Israel, Saudi Arabia,"
13Production 1)Long terms commitments with its suppliers 2)IKEA recycles its “five most waste materials”
14Marketing“Your partner in better living. We do our part, you do yours. Together we save money”1)internet, radio, T.V., newspapers, magazines2)catalog is the main marketing instrument
15MarketingSales by region Asia + Australia 3 % North America 16 % Europe 81 %Top 5 sales countriesGermany 19 % USA 11 % United Kingdom 11 % France 9 % Sweden 8 %
16Labor 1)2006 IKEA had over 104,000 employees 2)many freedoms for its employees3)two weeks of training
17SWOT Analysis Strengths 1) Marketing strategy 2) Brand recognition 3) Financially4) Low cost/ wide range of products
18SWOT Analysis Weaknesses 1) No main competitors Opportunities 1) Carpets
19SWOT Analysis Threats 1) competitors 2) new fashions, fads, or cultures3) recessions and declining economies
20SWOT Analysis Threats 1) competitors 2) new fashions, fads, or cultures3) recessions and declining economies
21Global Challenges Other markets China: Price: low high Service: DIY have bulk products delivered and installedDesign:fashion and short-term ; tend to be discardeddurable and practicalTransportation:congestion, chaosLanguage:product name: cause original meaning distortion even lawsuitcause original meaning distortion even lawsuit
22Global Challenges Europe United States products: short-term commoditieshave a habit to attach to old stuff, not change frequentlyLifestyle: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
23Industry Analysis Western furniture history The classical world---practicability & durabilityAncient Greece, Roman, Turkey, EgyptThe dark ages--heavy, oak, ornamented with carved designThe Baroque and Rococo---the nineteenth centurythe transitional furnitureAsian furniture historyChina----carved wood and bamboo, heavy lacquersJapan ----minimalist style, wood, high-quality craftsmanship
25Industry Analysis Trends: Color--bright color Form --follow the nature Materials--textured surfaces and transparent plasticRTA--ready-to-assemble furniture
26Industry 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.”
27Original intact forest extent Current forest coverRemaining frontier forest
28CompetitorsEuromarket Designs Inc. Galiform plc Wal-Mart Stores, Inc.
30Competitors (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.
36Long-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
37Any Questions? Thank you Home Is the most important Danny ReyesMichelle ChenCandy ZhongFeifei ZhongHomeIs the most importantplace in the world!East, West, Home is the Best！Any Questions?Thank you