IKEA is a Swedish furniture company established in 1943 that now operates 375 locations globally. It aims to create better everyday lives for many through efficient and effective operations. IKEA uses a DIY model for its garden furniture made from MDF that can be easily assembled. It focuses on costumers, brand strength, economies of scale, and design distinctiveness for its competitive advantage. IKEA keeps prices low through standardization and involving customers in the value chain with minimum staff. It also emphasizes sustainability and eco-friendliness in its operations.

1. IKEA OPERATIONS
CMBA8 OPERATIONS
GROUP PRESENTATIONS

2. ABOUT IKEA
• Established in 1943, Almhult, Sweden
• Head Quarters: Delft, Netherlands
• Presently serving 375 locations across the Globe
• Vision : Create a better everyday life for many
people

3. ESSENCE OF
OPERATION MANAGEMENT
• Efficiency
• Effectiveness
• Value

4. OPERATIONS
AS A SYSTEM
INPUTS OUTPUTS
CONVERSION
SUBSYSTEM
CONTROL
SUBSYSTEM

5. IKEA GARDEN FURNITURE
• Follows the DIY Model
• Can be easily assembled
• Made using Medium Density Fibreboard
(MDF)

6. • APPLARO
• FALSTER
• ARHOLMA
• KUNGSHOLMEN
• LACKO

7. Business Strategy @ IKEA

8. Competitive
Advantage
Costumers
included in
value chain ,
minimum staff
Strength of
Brand Name
Economies of
Scale:
Standardization
Distinctiveness
in Design

9. UNIQUENESS OF IKEA
Low Price Function Design
Uniquely IKEA

10. IKEA’s VALUE CHAIN
CUSTOMER SUPPLIER
VALUE
VALUEVALUE
VALUE

11. PRICING STRATEGY OF
IKEA

12. ECO FRIENDLY IKEA
• Sustainability
• Beyond The Trees
• Help My Friend
• IWAY or My Way

13. THANK YOU