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IKEA

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Transcript

  • 1. Live your life. Love your home.
  • 2. I (Ingvar ) Founders first name
    K (Kamprad) Founders last name
    E (Elmtaryd) Farm where he grew up
    A (Agunnaryd) Home village
  • 3. The IKEA Business idea
    “The IKEA vision is to create a better everyday life for the many people. We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”
  • 4.
  • 5. IKEA History
    In 1943, IKEA was founded by Ingvar Kamprad
    Based in Sweden
    Bright blue and yellow
    In 1951, the first IKEA furniture catalog was published
    1955 IKEA begins designing its own furniture
    1985 The first IKEA store opens in the USA
    1993 IKEA reaches 114 stores
    IKEA numbers 1,04,000 employees in 267 stores in 44 countries
  • 6. Marketing Strategy
    The IKEA vision is "To create a better everyday life for the many people.”
    The Ikea's mission is “To offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them.”
    The IKEA market positioning statement is "Your partner in better living. We do our part, you do yours. Together we save money."
  • 7. Product Line
    Bathroom
    Laundry
    Bedroom
    Lighting
    Children's IKEA
    Living room
    Cooking
    Secondary storage
    Decoration
    Small storage
    Dining
    Textiles
    Eating
    Workspace
    Hallway
    Youth room
    Kitchen
  • 8.
  • 9. Reason for choosing IKEA
    Product range
    Focuses on good design and function at a low price
    Offers home furnishing solutions for every room in the home
    Something for the romantic at heart, the minimalist and everyone in between
    Coordinated so that no matter which style you prefer our designers and product developers work hard to ensure that our products meet your day-to-day needs and eliminates the unnecessary
  • 10. Low prices
    Low prices are the cornerstone of the IKEA vision and our business idea
    Low prices make well-designed, functional home furnishings available to everyone
    Constantly trying to do everything a little better, a little simpler, more efficiently and always cost-effectively
  • 11. A better everyday life
    Taken the straightforward approach to the furniture business, by starting with developing furniture with the price tag in mind. This is the IKEA way, to maximize the use of raw materials in order to fulfill people's needs and preferences by offering quality products at an affordable price
  • 12. Ikea & the Environment
    Use of wood-recyclable, biodegradable and renewable material
    Select wood that is from verified, well-managed forests that have been certified
    Free disposal of light bulbs
    Minimize costs
    Selecting the right environmental friendly products
    Use leftover material
    Employees are “environmental co-ordinators” working to increase environmental awareness
  • 13. PORTER’s 5 FORCE ANALYSIS
    Threat of Buyers growing bargaining power
    There is a little power because of the existing low-price options
    IKEA ensure that their customers in all aspects will be satisfied for quality service they provide
    Focused their marketing approach on demands and needs of the buyer
    IKEA uses their corporate responsibility as a good public image to their customers
    IKEA Family -card as a membership
  • 14. Threat of Suppliers growing bargaining power
    IKEA has its thousands of suppliers that set standards in delivering the materials
    Because of the low-pricing, IKEA’s profit margin also affects the prices in raw materials than by prices in labour
    IKEA has a wide network of 1300 suppliers. They carefully select the manufacturer of its products. The company has own production factories and designers which makes it less dependent on others
    Bargaining power of supplier could be threat for the profit of the company
  • 15. Threat of Substitute Products
    There is no specific product that can be a substitute for the furniture but IKEA at least, have to keep up with the latest trends, to avoid becoming out of style
    Problems faced due to distribution channels
  • 16. Threat of Intense Segment Rivalry
    The IKEA’s furniture competitors’ offers different styles and functionality
    Conrin targets a new low cost in terms of furniture line; Crate & Barrel offers a furniture in a box which is subject in higher prices
    Ethan Allen aimed at a more upscale market
    Wal-Mart is equipped in a big box furniture that is categorized under the general store must-have-items, but don’t have much of a style
    IKEA is the most successful in delivering the complete package for the customers that reflects on weak rivalries
    There will always be substitutes for furniture’s but IKEA competes with price and there isn't competitors in same price range
  • 17. Threat of New Entrants
    IKEA stores do not reach many small towns and this is an opportunity for the new competitors to move into small and midsize cities with smaller stores and less selection. But not easier in city because new entrants have to establish a vast supply chain and create a unique brand name
    The furniture market is already highly competitive - the risk of new entrants is not extremely high - huge capital needed to start the business
  • 18. References
    http://www.ikea.com/ms/en_US/about_ikea/pdf/FF09_GB.pdf
    http://www.ikea.com/ms/en_US/about_ikea/facts_and_figures/index.html#
    http://en.wikipedia.org/wiki/IKEA
    www.ikea.com
  • 19. Presented By :Fenella Andrade
    Live your life, love your home.