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

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

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: www.ikea.com

Introduction Acronym- 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.

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

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"

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

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

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

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 %

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

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

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

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

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

Global Challenges Other markets China: Price: low high Service: DIY have 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

Global Challenges Europe United States products: short-term commodities 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 (California’s Hispanics) Transportation: 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

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

Industry 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.”

Original intact forest extent Current forest cover Remaining frontier forest

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

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)

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.

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

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

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

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

Short-term Recommendations Classify product standards (2)Carpets

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

Any Questions? Thank you  Home Is the most important Danny Reyes Michelle Chen Candy Zhong www.ikea.com Feifei Zhong Home Is the most important place in the world! East, West, Home is the Best！ Any Questions? Thank you 