SlideShare a Scribd company logo
1 of 37
Download to read offline
IKEA – THE GLOBAL TRAILER
▲
IKEA – THE GLOBAL TRAILER
Price of Furnitures
200
100
0

IKEA could reduce the price of the Klippan
by some 40 % between 1999 to 2006.
IKEA gains competitive price.
Minimize Production Costs
through outsourcing
Main Components

Outsourcing
All Production
Activities

Development of
Supply Chains in
Low-Cost Regions
Maintain
Product Rights
Establishment of
Swedwood

Features
Est. supplier relationships in Eastern Europe (e.g.
Czech Republic, Romania, Hungary) and in Asia
(e.g. China, Indonesia, Malaysia)
App. 1400 suppliers(2009) -China(22%),
Poland(16%)
Ownership of product rights
Well switching and close relationships
Allowfunctioningsuppliers when necessaryw/
suppliers of IKEA(est. 1991)
Subsidiary
Evolved into a supplier with advanced production
facilities of its own, mainly in Eastern Europe

Source: Global Sourcing Development at IKEA – a Case Study Paper prepared for the 25th IMP
conference
Transnational strategy
: IKEA CHINA

 Planned 10 stores by 2010
 Reflected the layout of Chinese apt in IKEA stores:
Balcony
 Home delivery Service: Rare car ownership
IKEA – THE GLOBAL TRAILER
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA

More Related Content

What's hot

Ikea ppt - FINAL PRESENTED
Ikea ppt - FINAL PRESENTEDIkea ppt - FINAL PRESENTED
Ikea ppt - FINAL PRESENTEDBruna Furlan
 
IKEA Marketing Strategy Presentaion
IKEA Marketing Strategy PresentaionIKEA Marketing Strategy Presentaion
IKEA Marketing Strategy PresentaionVikas Sonwane
 
IKEA Supply Chain Mangament
IKEA Supply Chain MangamentIKEA Supply Chain Mangament
IKEA Supply Chain MangamentManish Roy
 
Ikea marketing management presentation
Ikea marketing management presentationIkea marketing management presentation
Ikea marketing management presentationDidem Şahin
 
IKEA Business Model - Success Factors
IKEA Business Model - Success FactorsIKEA Business Model - Success Factors
IKEA Business Model - Success FactorsThi Hang Vu
 
Ikea supply chain introduction
Ikea supply chain introductionIkea supply chain introduction
Ikea supply chain introductionaliarjmand92
 
Ikea - operations and supply management
Ikea - operations and supply managementIkea - operations and supply management
Ikea - operations and supply managementAnanya Jain
 
Marketing Strategies of IKEA
Marketing Strategies of IKEAMarketing Strategies of IKEA
Marketing Strategies of IKEAKarishmaPatil31
 
Comparison of Marketing Mix of IKEA in Four Countries
Comparison of Marketing Mix of IKEA in Four CountriesComparison of Marketing Mix of IKEA in Four Countries
Comparison of Marketing Mix of IKEA in Four CountriesFatima Arshad
 

What's hot (20)

Ikea ppt - FINAL PRESENTED
Ikea ppt - FINAL PRESENTEDIkea ppt - FINAL PRESENTED
Ikea ppt - FINAL PRESENTED
 
IKEA Marketing Strategy Presentaion
IKEA Marketing Strategy PresentaionIKEA Marketing Strategy Presentaion
IKEA Marketing Strategy Presentaion
 
IKEA Supply Chain Mangament
IKEA Supply Chain MangamentIKEA Supply Chain Mangament
IKEA Supply Chain Mangament
 
Ikea marketing management presentation
Ikea marketing management presentationIkea marketing management presentation
Ikea marketing management presentation
 
IKEA Marketing
IKEA MarketingIKEA Marketing
IKEA Marketing
 
Ikea Presentation
Ikea PresentationIkea Presentation
Ikea Presentation
 
IKEA PRESENTATION
IKEA PRESENTATIONIKEA PRESENTATION
IKEA PRESENTATION
 
Ikea ppt1
Ikea ppt1Ikea ppt1
Ikea ppt1
 
Ikea Strategies
Ikea Strategies Ikea Strategies
Ikea Strategies
 
IKEA Business Model - Success Factors
IKEA Business Model - Success FactorsIKEA Business Model - Success Factors
IKEA Business Model - Success Factors
 
Ikea supply chain introduction
Ikea supply chain introductionIkea supply chain introduction
Ikea supply chain introduction
 
Ikea - operations and supply management
Ikea - operations and supply managementIkea - operations and supply management
Ikea - operations and supply management
 
Ikea's supply chain 2018
Ikea's supply chain 2018Ikea's supply chain 2018
Ikea's supply chain 2018
 
IKEA
IKEAIKEA
IKEA
 
Ikea Final
Ikea FinalIkea Final
Ikea Final
 
IKEA
IKEAIKEA
IKEA
 
Marketing Strategies of IKEA
Marketing Strategies of IKEAMarketing Strategies of IKEA
Marketing Strategies of IKEA
 
Comparison of Marketing Mix of IKEA in Four Countries
Comparison of Marketing Mix of IKEA in Four CountriesComparison of Marketing Mix of IKEA in Four Countries
Comparison of Marketing Mix of IKEA in Four Countries
 
Ikea: In the Industry
Ikea: In the IndustryIkea: In the Industry
Ikea: In the Industry
 
IKEA’s- Global Marketing Strategy
IKEA’s- Global Marketing StrategyIKEA’s- Global Marketing Strategy
IKEA’s- Global Marketing Strategy
 

Viewers also liked

IKEA Strategic case study & analysis
IKEA Strategic case study & analysisIKEA Strategic case study & analysis
IKEA Strategic case study & analysisOsama Albarrak
 
Ikea Invades India - Market Research report on entry strategy in India
Ikea Invades India - Market Research report on entry strategy in IndiaIkea Invades India - Market Research report on entry strategy in India
Ikea Invades India - Market Research report on entry strategy in IndiaManeesh Garg
 
Presentation on ikea
Presentation on ikeaPresentation on ikea
Presentation on ikeaRACHIT GULATI
 
Ikea, building a sustainable supply chain
Ikea, building a sustainable supply chain Ikea, building a sustainable supply chain
Ikea, building a sustainable supply chain Radu Acalfoaie
 
IKEA's Global Sourcing Challenge
IKEA's Global Sourcing ChallengeIKEA's Global Sourcing Challenge
IKEA's Global Sourcing ChallengePanos Anadiotis
 
IKEA: Furniture Retailer To The World
IKEA: Furniture Retailer To The WorldIKEA: Furniture Retailer To The World
IKEA: Furniture Retailer To The Worldkuszczakowski
 
A case study on ikea
A case study on ikeaA case study on ikea
A case study on ikeaphilmayo
 
A Marketing Excellence - IKEA
A Marketing Excellence - IKEAA Marketing Excellence - IKEA
A Marketing Excellence - IKEASandra S Kurian
 
Ikea presentation final
Ikea presentation finalIkea presentation final
Ikea presentation finalChetan Goenka
 
External and internal environment of Brothers Furniture Ltd
External and internal environment of Brothers Furniture LtdExternal and internal environment of Brothers Furniture Ltd
External and internal environment of Brothers Furniture LtdSadman Prodhan
 
The Balanced Scorecard Framework (mini presentation, case study of IKEA)
The Balanced Scorecard Framework (mini presentation, case study of IKEA)The Balanced Scorecard Framework (mini presentation, case study of IKEA)
The Balanced Scorecard Framework (mini presentation, case study of IKEA)Efstathios Peioglou
 

Viewers also liked (20)

IKEA Strategic case study & analysis
IKEA Strategic case study & analysisIKEA Strategic case study & analysis
IKEA Strategic case study & analysis
 
IKEA Porter's Five Forces and Value Chain Analysis
IKEA Porter's Five Forces and Value Chain AnalysisIKEA Porter's Five Forces and Value Chain Analysis
IKEA Porter's Five Forces and Value Chain Analysis
 
Ikea Invades India - Market Research report on entry strategy in India
Ikea Invades India - Market Research report on entry strategy in IndiaIkea Invades India - Market Research report on entry strategy in India
Ikea Invades India - Market Research report on entry strategy in India
 
Ikea Case Study
Ikea Case StudyIkea Case Study
Ikea Case Study
 
Presentation on ikea
Presentation on ikeaPresentation on ikea
Presentation on ikea
 
Ikea, building a sustainable supply chain
Ikea, building a sustainable supply chain Ikea, building a sustainable supply chain
Ikea, building a sustainable supply chain
 
IKEA in India
IKEA in IndiaIKEA in India
IKEA in India
 
IKEA STRATEGY PLAN
IKEA STRATEGY PLANIKEA STRATEGY PLAN
IKEA STRATEGY PLAN
 
IKEA's Global Sourcing Challenge
IKEA's Global Sourcing ChallengeIKEA's Global Sourcing Challenge
IKEA's Global Sourcing Challenge
 
IKEA: Furniture Retailer To The World
IKEA: Furniture Retailer To The WorldIKEA: Furniture Retailer To The World
IKEA: Furniture Retailer To The World
 
A case study on ikea
A case study on ikeaA case study on ikea
A case study on ikea
 
IKEA Marketing Idea
IKEA Marketing IdeaIKEA Marketing Idea
IKEA Marketing Idea
 
Toyota International Strategy
Toyota International StrategyToyota International Strategy
Toyota International Strategy
 
Ikea entering india
Ikea entering indiaIkea entering india
Ikea entering india
 
A Marketing Excellence - IKEA
A Marketing Excellence - IKEAA Marketing Excellence - IKEA
A Marketing Excellence - IKEA
 
Ikea presentation final
Ikea presentation finalIkea presentation final
Ikea presentation final
 
External and internal environment of Brothers Furniture Ltd
External and internal environment of Brothers Furniture LtdExternal and internal environment of Brothers Furniture Ltd
External and internal environment of Brothers Furniture Ltd
 
SWOT ANALYSIS FOR IKEA
SWOT ANALYSIS FOR IKEASWOT ANALYSIS FOR IKEA
SWOT ANALYSIS FOR IKEA
 
The Balanced Scorecard Framework (mini presentation, case study of IKEA)
The Balanced Scorecard Framework (mini presentation, case study of IKEA)The Balanced Scorecard Framework (mini presentation, case study of IKEA)
The Balanced Scorecard Framework (mini presentation, case study of IKEA)
 
Analyse stratégique d'IKEA
Analyse stratégique d'IKEAAnalyse stratégique d'IKEA
Analyse stratégique d'IKEA
 

Recently uploaded

New 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck TemplateNew 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck TemplateCannaBusinessPlans
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Falcon Invoice Discounting
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptxnandhinijagan9867
 
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 MonthsSEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 MonthsIndeedSEO
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Centuryrwgiffor
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptxRoofing Contractor
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAITim Wilson
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon investment
 
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdfTVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdfbelieveminhh
 
Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPanhandleOilandGas
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwaitdaisycvs
 
Rice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna ExportsRice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna ExportsShree Krishna Exports
 
Cannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 UpdatedCannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 UpdatedCannaBusinessPlans
 
BeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdfBeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdfDerekIwanaka1
 
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon investment
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityEric T. Tung
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with CultureSeta Wicaksana
 

Recently uploaded (20)

New 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck TemplateNew 2024 Cannabis Edibles Investor Pitch Deck Template
New 2024 Cannabis Edibles Investor Pitch Deck Template
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
 
Phases of Negotiation .pptx
 Phases of Negotiation .pptx Phases of Negotiation .pptx
Phases of Negotiation .pptx
 
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 MonthsSEO Case Study: How I Increased SEO Traffic & Ranking by 50-60%  in 6 Months
SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
 
Famous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st CenturyFamous Olympic Siblings from the 21st Century
Famous Olympic Siblings from the 21st Century
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptx
 
Buy gmail accounts.pdf buy Old Gmail Accounts
Buy gmail accounts.pdf buy Old Gmail AccountsBuy gmail accounts.pdf buy Old Gmail Accounts
Buy gmail accounts.pdf buy Old Gmail Accounts
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
 
HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024HomeRoots Pitch Deck | Investor Insights | April 2024
HomeRoots Pitch Deck | Investor Insights | April 2024
 
Falcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business PotentialFalcon Invoice Discounting: Unlock Your Business Potential
Falcon Invoice Discounting: Unlock Your Business Potential
 
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdfTVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
 
Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation Final
 
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai KuwaitThe Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
The Abortion pills for sale in Qatar@Doha [+27737758557] []Deira Dubai Kuwait
 
Rice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna ExportsRice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna Exports
 
Cannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 UpdatedCannabis Legalization World Map: 2024 Updated
Cannabis Legalization World Map: 2024 Updated
 
BeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdfBeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdf
 
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business Growth
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League City
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 

International Business Strategy of IKEA

  • 1.
  • 2. IKEA – THE GLOBAL TRAILER
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. IKEA – THE GLOBAL TRAILER
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18. Price of Furnitures 200 100 0 IKEA could reduce the price of the Klippan by some 40 % between 1999 to 2006. IKEA gains competitive price.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26. Minimize Production Costs through outsourcing Main Components Outsourcing All Production Activities Development of Supply Chains in Low-Cost Regions Maintain Product Rights Establishment of Swedwood Features Est. supplier relationships in Eastern Europe (e.g. Czech Republic, Romania, Hungary) and in Asia (e.g. China, Indonesia, Malaysia) App. 1400 suppliers(2009) -China(22%), Poland(16%) Ownership of product rights Well switching and close relationships Allowfunctioningsuppliers when necessaryw/ suppliers of IKEA(est. 1991) Subsidiary Evolved into a supplier with advanced production facilities of its own, mainly in Eastern Europe Source: Global Sourcing Development at IKEA – a Case Study Paper prepared for the 25th IMP conference
  • 27. Transnational strategy : IKEA CHINA  Planned 10 stores by 2010  Reflected the layout of Chinese apt in IKEA stores: Balcony  Home delivery Service: Rare car ownership
  • 28.
  • 29.
  • 30. IKEA – THE GLOBAL TRAILER