ETSITgroup

Basic Information wide range wide range well-designed well-designed functional home furnishing products functional home furnishing products low prices low prices

Location 44 countries around the world

Size 41 trading service offices in 30 countries 41 trading service offices in 30 countries about 1,380 suppliers in 54 countries about 1,380 suppliers in 54 countries

History story begins in 1926 in Sweden story begins in 1926 in Sweden 1960s-1970s concept starts to take shape 1960s-1970s concept starts to take shape 1980s IKEA expands dramatically into new markets such as USA, Italy, France and the UK 1980s IKEA expands dramatically into new markets such as USA, Italy, France and the UK 1990s Children's IKEA is introduced 1990s Children's IKEA is introduced 2000s expand to Japan and Russia, environmental products 2000s expand to Japan and Russia, environmental products

Competitors Some in each country Some in each country MOBLERONE, MUEBLES LA FÁBRICA, ART MOBEL in Spain MOBLERONE, MUEBLES LA FÁBRICA, ART MOBEL in Spain

Business sector Wood-based furniture and wooden components

Furniture designed to be assembled by the consumer designed to be assembled by the consumer reduce costs (shipped unassembled, …) reduce costs (shipped unassembled, …) flat-pack distribution methods allow for easier transport via public transport from the store to a customer's home flat-pack distribution methods allow for easier transport via public transport from the store to a customer's home

Manufacturing largely manufactured in developing countries largely manufactured in developing countries little production actually takes place in Sweden little production actually takes place in Sweden most of its products, the final assembly is performed by the end-user (consumer) most of its products, the final assembly is performed by the end-user (consumer)

Product names Origen in Sweeden DUKTIG (meaning: good, well- behaved) is a line of children's toys DUKTIG (meaning: good, well- behaved) is a line of children's toys BILLY (a Swedish masculine name) is a popular shelf BILLY (a Swedish masculine name) is a popular shelf DINERA (meaning: (to) dine) for tableware DINERA (meaning: (to) dine) for tableware KASSETT (meaning: cassette) for media storage. KASSETT (meaning: cassette) for media storage. SKÄRPT (meaning: sharp or clever) is a line of kitchen knives SKÄRPT (meaning: sharp or clever) is a line of kitchen knives

Good design and function good design good design good function good function right quality right quality affordable price affordable price not easy combining constantly looking for smart solutions to meet our customers needs.

Pareto Principle rule or the law of the vital few rule or the law of the vital few an observation that 80% of the effects come from 20% of the causes an observation that 80% of the effects come from 20% of the causes

Use of Pareto Principle sales sales calculating all discretionary expenses calculating all discretionary expenses quality and process improvement projects quality and process improvement projects comparing the recourses required to accomplish each (time, money…) with the benefits gained comparing the recourses required to accomplish each (time, money…) with the benefits gained

Flowchart picture of the separate steps of process in sequential order picture of the separate steps of process in sequential order the process described can be a manufacturing process, an administrative or service process, a project plan the process described can be a manufacturing process, an administrative or service process, a project plan

Cause and Effect Diagram the fishbone diagram identifies many possible causes for an effect or problem the fishbone diagram identifies many possible causes for an effect or problem used to find problem sources or solutions used to find problem sources or solutions

Product-focused strategy plants producing the products are organized by product plants producing the products are organized by product high volumes of Ikea products produced to be sold in stores worldwide (large quantities, little variety) high volumes of Ikea products produced to be sold in stores worldwide (large quantities, little variety) low product flexibility low product flexibility high equipment utilization high equipment utilization

Analysis and Design questions Is the process designed to achieve competitive advantage in terms of differentiation, response, or low cost? designed to achieve competitive advantage in low cost designed to achieve competitive advantage in low cost saving money in packaging products saving money in packaging products

Does the process eliminate steps that do not add value? creating a component of the product that has a dual purpose creating a component of the product that has a dual purpose eliminated a packaging step that did not increase the value of the product eliminated a packaging step that did not increase the value of the product using the lampshade as part of the processing and packaging step using the lampshade as part of the processing and packaging step cut out additional costs such as purchasing packaging material cut out additional costs such as purchasing packaging material

Will the process win orders? possibly new process will be popular among those with an environmental concern possibly new process will be popular among those with an environmental concern becoming increasingly important in this day and age for companies to be socially responsible by reducing waste and energy consumption becoming increasingly important in this day and age for companies to be socially responsible by reducing waste and energy consumption new process will potentially increase the social value of the company new process will potentially increase the social value of the company

Tech side a lot of technical tools to design and manufacture each product a lot of technical tools to design and manufacture each product Design Technology Computer- Aided Design (CAD) Design Technology Computer- Aided Design (CAD) Robots: perform monotonous and dangerous tasks and move wood, what is really heavy Robots: perform monotonous and dangerous tasks and move wood, what is really heavy Automated Storage and Retrieval Systems (ASRSs: These systems are found in inventory and test areas of each store Automated Storage and Retrieval Systems (ASRSs: These systems are found in inventory and test areas of each store

Possibilities of Internet good channel to show our products good channel to show our products not possible to carry out a purchase from home not possible to carry out a purchase from home lot of items whose size is very large and the costs of transport could rise a lot lot of items whose size is very large and the costs of transport could rise a lot in the future a lot of little size products without post costs in the future a lot of little size products without post costs

Twitter great tool for providing IKEA with ongoing tools, resources and tips on IKEA’s company of expertise great tool for providing IKEA with ongoing tools, resources and tips on IKEA’s company of expertise quickly finding vendors, employees, tech help and partners that match IKEA company quickly finding vendors, employees, tech help and partners that match IKEA company tracking all kinds of shipments with several different shipping companies tracking all kinds of shipments with several different shipping companies asking what products clients like, recommending new products, inviting to the company upcoming events asking what products clients like, recommending new products, inviting to the company upcoming events