Sweden has a developed economy aided by industries like timber, hydropower, and iron ore. IKEA is a major Swedish company that designs and sells assembled furniture worldwide. It was founded in 1943 and has annual revenue over $35 billion. IKEA offers affordable, well-designed home furnishings and has a mission to make products accessible to as many people as possible.

1. GROUP NO.2
HARSH SRIVASTAVA
ADITYA JAIN
ALMAZ SIDDIQUI
VAISHALI TOMAR

2. COUNTRIES PROFILE:
• Sweden is a developed export-oriented economy aided by
timber, hydropower, and iron ore.
• The main industries include motor
vehicles, telecommunications, pharmaceuticals, industrial machines,
precision equipment, home goods and appliances, forestry, iron, and
steel.
COMPANIES PROFILE:
• IKEA is formerly known as Ingvar Kamprad Elmtaryd Agunnaryd is a
Swedish multinational group of companies that designs and sells ready to
assemble furniture
• It was founded in SWEDEN by a 17 year old boy INGVAR KAMPRAD
FOUNDED IN 1943 (74 YEAR AGO)
HEADQUARTERS NETHERLAND
FOUNDER INGVAR KAMPRAD
NO. OF LOCATIONS 392 (2016)
PRODUCTS ASSEMBLED FURNITURE
REVENUE €35.074 BILLION (2016)
NET INCOME €4.200 BILLION (2016)
TOTAL ASSETS €53.967 BILLION
(2016)
TOTAL EQUITY €38.907 BILLION
(2016)
NO. OF EMPLOYEE 1,83,000 (2016)

3. MISSION/
VISION
COMPON
ENTS
IKEA WALMART
Customer
Products
Market
Technology
Concern for survival
Philosophy
Self-Concept
Concern for public image
Concern for employees

4. MISSION STATEMENT OF IKEA:
To offer 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.
MISSION STATEMENT OF WALMART:
In everything we do, we’re driven by a common mission: To improve the quality of
life for everyday people around the world.
REVISED MISSION STATEMENT:
To offer a wide range of well designed, functional home furnishing products at low
prices, keeping in mind customer needs with supportive employees, concern for the
society and resources, constantly growing business in future by adapting new
technologies for better products.
VISION STATEMENT:
To create a better life everyday

5. P E
S T
• 100% FDI POLICY
• LABOUR LAW
• TAXES AND DUTIES
• ENVIRONMENTAL LAW
• RECESSION REDUCES
DISPOSABLE INCOME
• HIGH BARRIER OF ENTRY
FOR COMPETITORS DUE
TO LOW PRICES OFFERED
TO CONSUMER
• LESSER CARBON FOOTPRINT
• RECYCLABLE PRODUCTS
• ONLINE TIPS ON REDUCING
ENVIRONMENTAL IMPACT
(CSR)
• FLAT SIZED PACKAGING
• INNOVATIVE DESIGN

6. THREAT OF NEW
ENTRANCE:
•LOW THREATS
•NEED TO BE
FINANCIALY STRONG
SUPPLIERS POWER:
•LOW POWER IN
HANDS OF SUPPLIER
•NUMEROUS No. OF
SUPPLIERS
BUYERS POWER:
•CUSTOMER HAS HIGH
BARGAINING POWER
•MANY OTHER BRAND
TO CHOOSE FROM
SUBSTITUTE THREAT:
•HIGH THREATS AS
THERE ARE MANY
PRODUCTS AVAILABLE
IN MARKET
RIVALRY:
•PEPPER FRY
•Blu Dot
•D’Decor
PORTER’S FIVE FORCE MODEL

7. Competitive Profile Matrix
Walmart IKEA Blu Dot
Critical success factor weight Range score weight range score weigh
t
range score
Brand reputation 0.01 3 0.03 0.01 4 0.04 0.01 2 0.02
Market share 0.11 2 0.22 0.11 3 0.33 0.11 1 0.11
Low cost structure 0.15 3 0.45 0.15 4 0.6 0.15 2 0.3
Variety of distribution channel 0.3 4 1.2 0.3 4 1.2 0.3 2 0.6
Successful promotions 0.03 2 0.06 0.03 3 0.09 0.03 2 0.06
Product quality 0.4 2 0.8 0.4 3 1.2 0.4 4 1.6
Total 1 2.76 1 3.46 1 2.69
Competitive Profile Matrix

8. External Factors Weight Rating Weight score
Opportunities
 Boom in construction
industry
 Providing tips and ideas for
a sustainable home life on
its websites
 Cutting carbon footprint
through less transport and
packaging
.16
.10
.22
3.5
3.0
2.0
.56
.3
.44
Threats
 Liberal government
policies
 Local Indian brand like
Neel Kamal
 Demand for low-cost
product
.16
.14
.22
3.5
3.0
2.5
.56
.42
.55
Total Score 1.0 2.83
EFE MATRIX

9. Value chain analysis
INBOUND:
raw
materials
from 1002
suppliers
from 51
countries
globally
OPERATION
:315 IKEA
Group stores
operates in
more than 40
countries
globally
OUTBOUND:
operates 34
distribution
centers
in 17 countries
SALES/MARKE
TING:IKEA
online sales is
established in
13 out of 27
markets
In FY2014
IKEA.com had
more than 1.5
billion visits
set of
techniques
such as the
provision of
online and
telephone
customer
services
INFRASTRUCTURE: large stores, hierarchical organization structure
HUMAN RESOURCE MANAGEMENT: high level of practice, effective staff
training and development programs
TECHNOLOGY DEVELOPMENT: R&D activities in Sweden, extensive use of
technologies
PROCUREMENT: long strategic relationship with suppliers, no need of raw materials
SERVICES

10. Internal factors Weight Rating w. score Comments
Strength
S1:Brand reputation and
market presence
S2:Using innovation to drive
cost down
S3:moduled folding furniture
.1
.2
.3
3.5
2.5
3.0
0.35
0.5
0.9
As it is the largest furniture
retailer.
Technology and new idea to
cut down the
manufacturing cost.
Weakness
W1:Weak position in Asian
market
W2:Stores are located in
outer area
.2
.2
2.0
1.5
0.4
0.3
Not very well known in
Asian market.
It is difficult for people to
travel so far for IKEA stores
1.00 2.45
IFE MATRIX

11. TANGIBLE RESOURCES V R I N
1 PHYSICAL RESOURCES
 313 stores worldwide
 38 countries
 World largest furniture retailer
Y
Y
Y
N
N
Y
Y
Y
Y
N
N
Y
2 FINANCIAL RESOURCES
• Source from franchise
 Promotion and advertisement
Y
Y
N
N
Y
Y
N
N
3 TECHNOLOGICAL
 Recycling and Upcycling
 Energy harvesting furniture
 Air improving windows
Y
Y
Y
N
Y
Y
N
Y
N
N
Y
Y
INTANGIBLE RESOURCES V R I N
1 HUMAN ASSETS
 CEO-Peter Agnefjall
 No. Of Employees-1lac 83k
Y
Y
Y
Y
Y
N
Y
N
2 COMPANY CULTURE
 Gender Equality (Having 50%
Managerial Position For Men
And Other 50% For Women)
Y Y N N
RESOURCE ANALYSIS