DOES NITORI’S ROAD LEAD TO THE WORLD? -COMPARATIVE ANALYSIS OF NITORI AND IKEA- KAORI AYABE Department of Regional Development Studies School of Regional.

Slides:



Advertisements
Similar presentations
Porters Five Forces Competitive Rivalry Potential Entrants BuyersSubstitutesSuppliers Heating Up Cool To Warm.
Advertisements

Maxwell Shoe Company Ben Bittrolff Mark Mitchell Andrea Ranalli Ryan Ricci Sonia Varkey Done By:
By: Leigh Blackmon, Justin Napier, Sara Ratliff, and Brian Roundtree
Industry and Competitive Analysis
The VET Market Jim Davidson Department of Education, Employment, and Workplace Relations.
Preview: Environmental Analysis 4 PEST Analysis 4 Industry & Market 4 Porter’s Five Forces Model 4 Generic Strategies 4 Environmental Analysis Overview.
Conducting a Feasibility Study and Crafting a Business Plan
The Environment of Global Trade capital movements (not trade) are driving forces of the world economy production is ‘uncoupled’ from employment e.g security.
Presented By:- Dharm Jeeta Singh
Michael Porter’s Five Forces Model.
Porter’s Five Forces Michael Porter
... affordable solutions for a better living. Main points 1)The vision of IKEA 2)Timeline 3)Products 4)Facts & Figures 5)Criticism.
Tour Operations Management The evolution and growth of the Tour Operations sector Based on the UK case study (Morgan 2002)
External Analysis. Introduction  Internal analysis helps to identify the core competences of the business, while external analysis, particularly of the.
Seminar Pemasaran. Element’s of A Theory of Your Business What business are you in What is your desired market positioning What is your basis for differentiation.
Conducting an Industry Analysis. Seven Questions for Industry Analysis 1. What are the industry dominant economic traits? 2. What competitive forces are.
Identifying Competitive Advantages
CHAPTER 5: Category Attractiveness Analysis
Chapter 1: Supply Chain Management. Chapter 1Management of Business Logistics, 7 th Ed.2 Learning Objectives - After reading this chapter, you should.
By: Kavita, Chris, and Jake PORTER’S GENERIC STRATEGIES AND FIVE FORCES.
Polo Ralph Lauren Executive Summary
Strategic Management Process
Business Analysis by Binam Ghimire
Analysis of A utomobile Industry. Introduction  Oldest  Biggest  Most extended  Ensuring the living of millions people The Automobile Industry.
Jiazi Cui Ying Jiang Presented: April 24, Agenda  Company Overview  Relevant Macroeconomic Trends  Industry Structure Analysis  Financial Analysis.
( An IACBE Accredited Institution ) Industry Analytics Post Graduate Programme (2010 – 12) 3rd Term Alliance Business School Bangalore.
Chapter 2 --Market Imperfections and Value: Strategy Matters u Wealth creation is impossible in a perfect market u Porter’s five forces can be used to.
3. Competitive Forces Model Companies must contend with five competitive forces which you need to analyse (Figure 4-6) : 1Threat of new entrants 2Bargaining.
Founder Ingvar Kamprad ( 英格瓦 · 坎普拉德 ) Born:1926/3/30 He established IKEA in Sweden in 1943 when he was just 17 years old.
Chapter 2 --Market Imperfections and Value: Strategy Matters u Conditions necessary for a perfectly competitive product market and resource market: u No.
Learning Objectives To learn to identify the different types of environments that affect a firm To learn to identify the different types of environments.
Preparing a business plan Workshop APL Leading a business Drives and values Context Actions Leadership styles.
Annual Report Annual Report El mostafa Achar El mostafa Achar ACG2021,section002 ACG2021,section002.
©2004 by South-Western/Thomson Learning 1 The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis Robert E. Hoskisson.
©2003 Southwestern Publishing Company 1 The External Environment: Opportunities, Threats, and Industry Competition, and Competitor Analysis Michael A.
CH 2 STRATEGY ANALYSIS. Strategy Analysis Strategy analysis is an important starting point for the analysis of financial statements –Allows the analyst.
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. Evaluating a Company’s External Environment.
ES4C9 Supply Chain Management
INDUSTRY ANALYSIS Dr.M. Thenmozhi Professor Department of Management Studies Indian Institute of Technology Madras Chennai
Section B Group 8 Oscar Bernaldez / Pablo Franzini / Masa Kijima Alessandro Piloni / Nikolaos Platis / Iris Tang.
Chapter 4 Learning an Industry. Copyright © Houghton Mifflin Company4-2 Overview Industry life cycle Industry structure The environment of the industry.
Global Entrance Matting Market by type, by Material by Utility and by Application - Global Forecast to 2020 TELEPHONE:
American Eagle Outfitters Presented December 5, 2002.
Water Treatment Systems (PoE) Market by Technology And Application - Global Forecast to 2020 TELEPHONE:
©2004 by South-Western/Thomson Learning 1 The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis Robert E. Hoskisson.
Fashion Businesses MKT-FMRE-8 Understand the concepts and processes needed to obtain, develop, maintain, and improve a product mix in response to market.
COMPETITIVE ADVANTAGE UNIT – II. EXTERNAL ENVIRONMENT Any organization before they begin the work of strategy formulations, it must scan the external.
INTERNATIONAL MARKETING MANAGEMENT SESSION 13: GLOBAL PORTFOLIO STRATEGY 1.
STRATEGIC MANAGEMENT II Porter’s five forces module.
Lecture-5 MGT301 Principles of Marketing. Summary of Lecture-4.
Industry Primer – Consumer Goods
Porter’s Competitive Forces dan Value chain
Introduction to Strategy
SWOT analysis on IKEA A case study on IKEA SWOT analysis Strength
MOTHERHOUSE.
Michael Porter’s Five Forces Model.
Flexsteel Industries, Inc.
Strategic Management How Star Managers Realize a Grand Design
Strategy formulation and implementation
YOUR LOGO YOUR COMPANY NAME COMPETITIVE ANALYSIS.
Strategic Management B O S.
Pepperfry – Becoming profitable within the next 18 months
INGVAR KAMPRAD ELMTARYD AGUNNARYD
IKEA Home furnishings.
Competitive and Industry Analysis
Michael Porter’s Five Forces Model.
The Environment of Global Trade
Principles of Marketing Lecture-5. Summary of Lecture-4.
Strategic Information Systems
What affects our business from the outside?
Presentation transcript:

DOES NITORI’S ROAD LEAD TO THE WORLD? -COMPARATIVE ANALYSIS OF NITORI AND IKEA- KAORI AYABE Department of Regional Development Studies School of Regional Development Studies Toyo University

Introduction Furniture is one of necessary items for living our life. “Brown” and “square” were old image of furniture. Recently furniture becomes more stylish. Nitori is one of well-known furniture company, and will start their business in the U.S in I wonder if Nitori can make success in the U.S.. 2

Statement of the Problem 1.Will Nitori be a good global company like IKEA? 2.How is the state of Nitori's balance sheet? 3.Nitori has enough strategy to defeat rival companies in the U.S? 3

Research Methods 1.Financial Analysis of Nitori 2.Ratio analysis between Nitori and IKEA 3.Porter’s five forces analysis 4.Specialized Strategy 4

Overview of the Recent Trends of Furnishing Industry Japanese Furniture Industry The Furniture Industry is classified into one of the Interior Industry segments. The home furniture market had been decrease with the decrease of demand for newly built homes and new families. Furniture Industry Scale Ranking Based on Sales (Source: Yuho! Industry Ranking) 5

Global Furniture Industry The European Union (EU) furniture industry accounts for about half of the world's furniture production. The world furniture industry has been growing. The furniture industry is expected to grow by 20 per cent a year especially India, Brazil and Russia Global Trade in the Furniture Sector (Source: Furniture, 2012) 6

Overview of Nitori Founder: Akio Nitori from Hokkaido Established: in 1967 in Sapporo Store: 212 stores in Japan, 5 stores in Taiwan and will start business in LA, the U.S in 2013 Vision: To present Japan and the whole world with the abundant home decoration that is as splendid as that of Europe and the U.S SPA (Specialty Store Retailer of Private Label Apparel): meaning a company conducts all processes in-house from acquisition of raw material to manufacturing, distribution, sales and consumption 7

Overview of IKEA Founder: Ingvar Kamprad from Sweden Established: in 1943 in Agunnaryd Store: a total of 287 stores in 26 countries Vision: to create a better everyday life for the many people Flat-Packing System: 8

1. Financial Analysis of Nitori 9

10 Ratio of Nitori and Japan Furnishing Industry Average in 2011 (Source: Nitori’s Annual Securities Reports of 2012, Zenkoku Zaimu Shohyou Bunseki Toukei)

2. Ratio analysis between Nitori and IKEA Compare these ratios: profitability, liquidity, and solvency Profitability Niotri ≒ IKEA SolvencyNitori ≒ IKEA Big difference in Liquidity ratio (Current ratio) Possible reason a)IKEA keeps currents assets to deal with the risks and issues coming up b)Europe financial system lead the global company to have current assets (Ex: H&M) 11

3. Porter’s Five Forces Analysis Five Forces Bargaining Supplier’s Power Bargaining Power of Buyers Threats of New Entrants Threats of Substitutes Rivalry within the Industry LOW HIGH LOW HIGH 12

Generic Strategy Cost Leadership and Differentiation Nitori: SPA IKEA: Flat packing system 13

4. Specialized Strategy Logistics: 6 distribution centers → 78 delivery centers → stores Quality Control: PDCA cycle Sales Floor: Wide, open space Logistics: 28 distribution centers and 11 customer distribution centers in 16 countries. Design: Scandinavian style Sales Floor: Like a big labyrinth 14 Nitori IKEA

5. Conclusion How to compete with IKEA in the U.S? Logistics system 15

Thank you for your attention.

17

18 Location of Nitori’s Distribution Center in Japan (Source: Home Distribution and Tourism in Japan)

19 IKEA Sales floor (Source: Intelligence of IKEA’s Furniture)

Summary of Nitori and IKEA (Source: Imura, 2012 and from This Study) 20