1. Freddy Skarbø Petter Haugarvoll Bjørn G. Bergem

2. The Beginning Founded by Ingvar Kamprad in 1943
First store opened in 1953
Begins testing flat packages
First store outside Sweden opened in 1963 (Norway, Oslo)
186 stores in 43 countries

3. IKEA Value Chain

4. Suppliers and Purchasing
1.800 suppliers in 55 countries
Purchase most products from Europe, but also from Asia
Manufactures many of its products through IKEAs industrial group Swedwood
Swedwood was founded in 1991 and consists of sawmills and factories

5. Products/Range 76.000 employees in 43 countries
Turnover for the financial year 2002 was 11,3 billion euro
Sells more than articles
Product Development Company consist of 760 employees.

6. Children’s IKEA
The launch of Children’s IKEA in 1997

7. IKEA Catalog Worlds largest printed publication
Main task is to lure customers to their stores for a whole year
131 million copies
23 languages and 45 different editions
Also ’Kitchen brochure’, ’Office brochure’, ’Bedrom brochure’ etc.

8. Evans & Wurster Businesses compete on the elements
Reach – how buyers and sellers most effectively can find each other
Richness – ability to emphasize product attributes and/or reinforce branding
Affiliation – whose interests in the value chain the business represents

9. Richness and Reach RICHNESS REACH The quality of the information
Bandwidth
Customization
Interactivity
Reliability
Security
Currency
REACH
The number of people exchanging information

10. The trade-off blown up RICHNESS Enablers Connectivity
New levels of richness and reach attainable
Enablers
Connectivity
Dissemination of standards
REACH

11. Deconstruction Competitive advantage “de-averaged”
Intensified competition
Information businesses inherit new value
New opportunities for physical businesses
Disintermediation
Navigators emerge

12. Disintermediation
RICHNESS
New approach
Traditional
approach
REACH

13. Navigators
Competition is to aid customers to navigate towards your company’s products.
The navigator will compete on
Reach – the size of the universe across which it can navigate
Richness – the quality and customization of the information delivered
Affiliation – the closeness with which the navigator identifies with the interests of its client, and serve as agent for the client’s interests

14. IKEA – new business model
RICHNESS
Segment-of-one
Alliances
Virtual design
Online ordering
Web catalogue
REACH

15. IKEA versus Stordal Møbler
RICHNESS
Stordal
IKEA
REACH