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

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

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. 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.

5. History 1943: founded in Sweden by Ingvar Kamprad; 1951:
published the first IKEA furniture catalogue; :
designed own furniture
tested to use flat packages for shipping;
2001:
established IKEA Rail

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

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

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

10. Future Profile
Internet business
Environmental protection

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

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

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

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

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

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

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

21. 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

22. 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

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

26. 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.”

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

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

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.):$ (2007)
Employees: 6,000 (2007)

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. Competitors (2) Galiform plc Company type: Public
Founded: 1964: MFI : Galiform plc
Headquarters: London
Industry: Furniture Trade
Products: Kitchens & Bedrooms; Doors & Joinery
2006 Sales (bil.): $2.5
2006 Employees: 10,728

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. 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. 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. Short-term Recommendations
Classify product standards
(2)Carpets

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