IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. Today it is the world's largest furniture retailer, recognized for its Scandinavian style. The majority of IKEA's furniture is flat-pack, ready to be assembled by the consumer.

1. IKEA
Presented by:
ARAVIND SAMALA
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2. 2
Overview
 Introduction
 History
 Current Situation
 SWOT Analysis
 Global Challenges
 Industry Analysis
 Competitors
 Recommendations

3. 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: www.ikea.com

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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.  1943:
founded in Sweden by Ingvar Kamprad;
 1951:
published the first IKEA furniture catalogue;
 1955-1956:
designed own furniture
tested to use flat packages for shipping;
 2001:
established IKEA Rail
History

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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

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

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

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

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 Internet business
 Environmental protection
Future Profile

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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"

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

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

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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

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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 %

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

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

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SWOT Analysis
Weaknesses
 1) No main competitors
Opportunities
 1) Carpets

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

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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 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 congestion, chaos

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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

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

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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.”

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Original intact forest extentOriginal intact forest extent
Current forest coverCurrent forest cover
Remaining frontier forestRemaining frontier forest

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

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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.):$ 401.3 (2007)
 Employees: 6,000 (2007)

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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.

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

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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

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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

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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

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

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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

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