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1 IKEA Presented by: Danny Reyes, Feifei Zhong, Candy Zhong, Michelle Chen.

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Presentation on theme: "1 IKEA Presented by: Danny Reyes, Feifei Zhong, Candy Zhong, Michelle Chen."— Presentation transcript:

1 1 IKEA Presented by: Danny Reyes, Feifei Zhong, Candy Zhong, Michelle Chen.

2 2 Overview Introduction History Current Situation SWOT Analysis Global Challenges Industry Analysis Competitors Recommendations

3 3 Introduction Founded:1943 in Älmhult, Småland, Sweden Headquarters: Leiden, The Netherlands Industry: Retail (Specialty) Products: self-assembly furniture Revenue: $28.6B USD (FY 2007) Employees: 104,000 (2006) Website:

4 4 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.

5 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

6 6 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

7 7 History: important designs in the past 1963: Marian Grabinski designed MTP Bookcase. 1974: Olle Gjerloy Knudsen and Torben Lind designed SKOPA Chair.

8 8 History: important designs in the past 1985: Niels Gammelgaard designed MOMENT Sofa. 1994: KUBIST Storage Units appeared.

9 9 Current Profile Focus on kitchen and bedroom Sleep Revolution High-quality, Lower-price products

10 10 Internet business Environmental protection Future Profile

11 11 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 co-workers as a social responsible company"

12 12 International business IKEA stores around the world "United States, Denmark, Germany, Spain, Israel, Saudi Arabia,"

13 13 Production 1)Long terms commitments with its suppliers 2)IKEA recycles its five most waste materials

14 14 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

15 15 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 %

16 16 Labor 1)2006 IKEA had over 104,000 employees 2)many freedoms for its employees 3)two weeks of training

17 17 SWOT Analysis Strengths 1) Marketing strategy 2) Brand recognition 3) Financially 4) Low cost/ wide range of products

18 18 SWOT Analysis Weaknesses 1) No main competitors Opportunities 1) Carpets

19 19 SWOT Analysis Threats 1) competitors 2) new fashions, fads, or cultures 3) recessions and declining economies

20 20 SWOT Analysis Threats 1) competitors 2) new fashions, fads, or cultures 3) recessions and declining economies

21 Global Challenges Other marketsChina: Price:lowhigh Service:DIYhave bulk products delivered and installed Design:fashion and short-term ; tend to be discarded durable and practical Transportation:congestion, chaos Language:product name: cause original meaning distortion even lawsuit cause original meaning distortion even lawsuit

22 Global Challenges EuropeUnited States products:short-term commoditieshave 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

23 23 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


25 25 Industry Analysis Trends: Color--bright color Form --follow the nature Materials--textured surfaces and transparent plastic RTA--ready-to-assemble furniture

26 26 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.

27 27 Original intact forest extent Original intact forest extent Current forest cover Current forest cover Remaining frontier forest Remaining frontier forest

28 28 Competitors Euromarket Designs Inc. Galiform plc Wal-Mart Stores, Inc.

29 29 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)

30 30 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.

31 31 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

32 32 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

33 33 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

34 34 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

35 35 Short-term Recommendations (1)Classify product standards (2)Carpets

36 36 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

37 Home -Is the most important place in the world! East, West, Home is the Best Danny ReyesMichelle ChenCandy Zhong Feifei Zhong Thank you

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