Pereya (Pear) Suviwattanachai Nalinrach (Pook) Suksathaporn Sithiphon (New) Suwanboriban

Background IKEA –> IK = Ingvar Kamprad (founder’s name) E = Elmtaryd (farm) A = Agunnaryd (home country) Founded in 1943 Beginning: offered pens, wallets, and clocks. Today : – IKEA Furniture (self-assembly furniture) – 278 stores in 36 countries – 522 million visitors – $28.6 billion USD (Revenue)

Organization Motto “to create a better everyday life for the many people” Product range focuses on good design and function at a low price Goal to reach as many people as possible Advertisement - catalog - online - TV ads YouTube - IKEA Nanny Banned CommercialYouTube - IKEA Nanny Banned Commercial

Store Format Large blue buildings Few windows One-way layout The long natural way Furniture showrooms House wares Cashier’s stationWarehouse

Strengths Unique Resources – Value – Rareness – Inimitability – Organization Cost-Effective – Low-price – Big volume

Strengths Strategic Positioning – “Self-service model” – Customers willing to trade (off service for price) – Design by themselves Valuable advertising sources IKEA catalogue – 191 million copies 56 editions 27 languages

Strengths InternationalBrand Recognition – Unique philosophy & low price Distribution Channels around the world – Europe, U.S., Asia, Latin America Immense experience in designing and manufacturing – Cooperating with skilled producers

Weaknesses Rely heavily on Europe Market - 81% of the IKEA department stores are located in Europe Availability - Most stores are located outside of city centre - Have to drive a long way to come to the IKEA

Weaknesses Several complaints on TV ads - many of them were banned YouTube - Ikea Commercial :: Tidy Up

Opportunities Opportunity to grow in many more locations Seek out smaller markets before entering more metropolitan locations – Plus financial strength Find less expensive real estate in the suburbs than in urban locales

Threats Competition - Wal-Mart and Galiform Cultural Threats - Especially in Asia market (TV Ads) An increase in shipping & material costs Crime - Shoplifting, breaking in