...Ikea is a brand that builds on the values, spirit and intentions of our founder Ingvar Kamprad, and upon the Ikea vision “to create a better everyday life for the many people”. Ikea business idea 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. This business idea is achieved by combining function, quality, design and value. This concept exists in every part of Ikea, from design, sourcing, packing and distributing through to our business model. Their vision involves creating a better every day for all people affected by their business. Ikea has warehouse stores worldwide where it’s their goal to have all of their products available to all of their customers, they currently have 38 stores in United States, will be reaching to 40 stores by the end of 2014 (Roth, 2013). All of Ikea stores are designed the same way for the ease of customers, the stores are setup similar to a home, separate sections for bedroom, kitchen, bathroom, and so on. This is not that unique when you initially look at it, since majority of the furniture stores we go into have bedrooms, living rooms and dining rooms separated. However, what makes this different for Ikea is, that when you think bedroom you think of furniture, bedding, curtains, decorations, they have combined all of the products, grouped them in a section for the ease of their customers. Ikea invests a lot into their vision of creating a...
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...Case Study on IKEA Executive Summary The case study of IKEA has been read, analyzed; and the findings are presented in the report as required. The goal of the report was to analyze the case study of IKEA and then to present the findings as well as performing some tasks that are required in this report. Firstly, some terms that are closely associated with marketing has been described and analyzed. In addition to that, those terms are also discussed in relation with the case study. Brand, Business strategy, retail sector, price sensitive and franchisee are the terms that have been discussed in this report in the first section. In the second section, the required calculation for average number of customers of each sector and average spending of customers has been worked out. A new mission statement for IKEA has also been proposed there along with the justification for the mission statement. In the third section, the importance and nature of SWOT analysis has been discussed and elaborated. It is seen in the case study that IKEA performs a SWOT analysis that supports their process of building strategy. Moreover, the SWOT analysis of IKEA has also been performed and justified. In the fourth section, SMART objectives and some new marketing mix ideas for IKEA has been demonstrated. In the fifth Section, the concept of marketing model and minimizing the threats for IKEA has been included and demonstrated. Ultimately, the report contains what were required...
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...Success Factors of IKEA 1 The Key Success Factors of IKEA Advanced English Writing 2 Abstract Taking advantage of three mayor cost-cutting strategies, IKEA has been able to maximize its profit and to succeed internationally with its concept. The self-service and do-it-yourself approach to selling furniture is one of the critical success factors IKEA uses to save costs and increase profit margins. Furthermore, it has a complicated company structure, partially in order to avoid taxes, but also to allow for some flexible management decisions to be made, based on the international needs. The third key success factor that can be held responsible for IKEA’s international triumph is its production and ordering system. The company uses recycled materials and wood alternatives in its mass productions, attracting customers from all kinds of layers of society. IKEA Key success factors International franchise Success Factors of IKEA 3 Table of Contents 1. Table of Contents ..................................................................................... 3 2. Introduction .............................................................................................. 4 3. Discussion ................................................................................................ 4 3.1 The Self-Service Approach ............................................................. 4 3.2 Advantageous Tax Planning and Decentralized Management ........ 5 3...
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...Management IKEA Case Study Sharleen Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing its target market and pricing strategy, which is already discussed. This case study further says how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordable for them to purchase IKEA products. Some of IKEA’s main markets are in three of the fastest growing markets such as Russia, US and China. IKEA store bring out products such as furniture to small product like a scented candle. IKEA has over 1300 suppliers in about 53 countries. They further have 12 full time in- house designers with 80 free lancers and other production workers to identify the correct raw materials and produce products efficiently and cost effectively. Primarily, IKEA produced standardized products however; this international strategy did not work for one of its vital markets that is, US. Therefore, they had to emphasize on taking corrective actions. The report also analyses the entry methods used by IKEA and its sustainability. IKEA Case Study ...
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...Challenges Faced By IKEA:- Here are some of the challenges I found from the case study- * I kea’s low valued products used excessive space on load units due to packaging design which resulted in poor efficiency in both transportation and warehouse operations that created unnecessary costs. * Involvement of suppliers was a challenge as solving the problem affects the packaging design as it affects the product design too as it got to adapt to the new packaging design where manufacturing processes are affected too. * To discover new ways to reduce unnecessary space in packaging without altering the product design. * Eliminate the problems related to filled air that takes a lot of unnecessary space during transportation and storage by finding out new methods for packaging. * Another challenge would be Increase in density of the packaging would create overload and to balance the load on the trucks is to use lightweight products to fill up the left over space. That is in short to Load balance the products of different volumes to fill transportation units in regard to both weight and volume. * For the above balancing scenario it is important to convince suppliers for a cluster supplier concept by storing one company’s product by another supplier in order to reduce space related problems. Strategic Implementation:- * Implementation of cluster supplier concept for Glimma tea candles where a major supplier of IKEA takes responsibility for storing...
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...Name [optional] University The stakeholders of IKEA- Stakeholders are groups or individuals (customers, employees, suppliers, communities, and shareholders or other financiers) who can affect or be affected by the successes and failures of a business. In case of IKEA, their customers who bought furniture form them in 70 nations, all the employees who work for IKEA in 70 countries all over the globe, their suppliers all over the world who supply IKEA with the raw-material as well as furnished furniture, and all those who financed the company to open its stores and make primary investments in the 70 countries, for its geographical expansion are the “real stakeholders of IKEA”. IKEA was founded in the early 1950s, but in the mid of the 1960s it became a global furniture manufacturing company. During its expansion all around the globe, Ingvar Kampard (the founder of IKEA) opened multiple stores in different countries, some of them were self-financed by him while others were assumed to be opened as the tie up between the company’s and their stockholders (for finance) in that company, especially, those who financed the company to open the chain of stores on the foreign land. Also, when some problem arises in the indigenous market when Sweden’s local large furniture retailers threatened and all the sourcing and suppliers were blocked and even small retailers were ordered not to sell IKEA’s product, under that circumstance, IKEA has to look abroad for the suppliers. And soon after...
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...COMPANY PROFILE Ikea Group REFERENCE CODE: 6878C795-4BCB-4C85-A319-6F33C508FD80 PUBLICATION DATE: 14 Aug 2014 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Ikea Group TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Ikea Group © MarketLine Page 2 Ikea Group Company Overview COMPANY OVERVIEW Ikea Group (Ikea or 'the group') is an international home products retailer. It sells furniture, accessories, and bathroom and kitchen items. Ingka Holding BV, a wholly-owned company by Stichting Ingka Foundation, is the parent company for the Ikea group of companies. The foundation is owned by the Kamprad family. As of August 31, 2013, the group had operations in 43 countries across Europe, North America, Asia and Australia. Ikea is headquartered in Delft, the Netherlands, and employed 135,000 people as of August 31, 2013. The group recorded revenues of E28,506 million (approximately $37,280.1 million) during the financial year ended August 2013 (FY2013), an increase of 3.2% over FY2012. The operating profit of the group was E4,011 million (approximately...
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...Management IKEA Case Study Sharleen Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing its target market and pricing strategy, which is already discussed. This case study further says how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordable for them to purchase IKEA products. Some of IKEA’s main markets are in three of the fastest growing markets such as Russia, US and China. IKEA store bring out products such as furniture to small product like a scented candle. IKEA has over 1300 suppliers in about 53 countries. They further have 12 full time in- house designers with 80 free lancers and other production workers to identify the correct raw materials and produce products efficiently and cost effectively. Primarily, IKEA produced standardized products however; this international strategy did not work for one of its vital markets that is, US. Therefore, they had to emphasize on taking corrective actions. The report also analyses the entry methods used by IKEA and its sustainability. IKEA Case Study ...
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...analysis 2.1 Strength 2.2 Opportunities 2.3 Weakness 2.4 Threats 3.0 ……………………………………………………………….Product 4.0 …………………………………Product/Market Expansion Grid 5.0 …………………………………………….Environmental Analysis 6.0 ………………………………………The New Development Plan 7.0 …………………………………………………………...Conclusion Introduction: IKEA was founded in 1943, by 17 year-old Ingvar Kamprad in Sweden, the company is named as an acronym comprising the initials of the founder’s name, the farm where he grew up (Elmtaryd), and his home parish (Agunnaryd, in Smaland, South Sweden) . From the heart of the Swedish mountains, the idea of IKEA developed in a way to establish a relationship between its customers and everyday living environment. After its success, the company has opened 253 stores in 24 countries in 2008. Today IKEA is the world’s largest home furniture retail shop; they have a different concept for shopping. While families are choosing their own home designed furniture, they could rest in one of IKEA’s restaurant that serves Swedish food, or just buy the groceries from the designated shop in IKEA. Their concept differs from the usual idea of shopping; it combined an affiliation between economy and environment, to have the most suitable prices matching the daily lives of each one of us. In this project research, we discussed the prospects and intimidations of such a company in the market, the product suggested in the research would be a huge success...
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...FOR IMMEDIATE RELEASE Countdown to the 2013 IKEA Catalogue! Petaling Jaya, 16 August 2012 – Let your imagination run wild with the infinite possibilities of making your precious moments at home come true as we count down to the launch of the much awaited 2013 IKEA Catalogue. In anticipation of the arrival of the new catalogue on 30th August, drop by the IKEA store between 21st to 29th August to visit the larger than life IKEA Countdown Room display that will showcase different room settings every day to inspire you to recreate your special moments at home with your family or loved ones. Experience the magic moments of the IKEA Countdown Room Between 21st to 29th August, the IKEA Countdown Room will feature different room settings of a home every day. From the living room and bedroom, to the kid’s room and kitchen, be inspired to complete your moments at home with IKEA. There will be a host of inspiring and engaging activities and games for the family and friends with attractive prizes up for grabs throughout all of the nine days. Loads of IKEA furniture can be won daily in the IKEA Malaysia Facebook contest from 21st to 29th August as well. Celebrity chef Anis Nabilah, host of TV cooking programmes Icip-Icip and Sesedap, will also be on hand to conduct a cookie baking demonstration. For entertainment, up and coming acoustic guitar player Amir Jahari will be serenading visitors with his mix of soulful and sweet tunes. On 21st August, popular comedian Suhaimi Yusof will host...
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...IKEA: Ecommerce Expansion/ IT Capacity Management Information System Initiative LASA 1 Organizational Structure IKEA currently holds the position as the world’s largest furniture retail chain, with 332 locations, in 32 countries worldwide. IKEA is operated and owned by an array of no-for-profit corporations. The Organizational Structure is divided into two main entities: Franchising and operations. Many of IKEA’s operations, including the manufacturing and design of products, the managerial operations, and the supply-chain processes, are overseen by INGHKA Holding, which is private, for-profit Dutch Corporation. INGHKA Holding currently runs 235 of the IKEA stores, the remaining are operated and ran by franchises that are outside of INGHKA Holding. IKEA has differentiate themselves from their competitors, by satisfying the needs and wants of their consumers, with upholding a value proposition that is center on providing, high-quality products (furniture), at affordable prices. IKEA’s value proposition differentiated them from their competitors, secured competitive advantage and positioned themselves as the leader in furniture retailer, on a global level, by their value-based services, and marketing mix that emphasizes on areas such as: Location, Merchandise, Store Format, Market Communications, and Service and Selling Environment, which produced a remarkable “brand image”; “The essential role of brands is to differentiate a product or service from others in satisfying a...
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...well known company – IKEA. Before I go any further I am going to shortly describe its products and concept. IKEA is a Swedish company founded in 1943 is multinational group that designs and sells ready-to-assemble furniture (beds, chairs, desks) as well as traditional Swedish food. IKEA owns stores in 43 countries but I am going to focus only on Denmark. The IKEA Concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few. It is achieved by combining function, quality, design and value - always with sustainability in mind. As it a large company it is not always easy to keep up with its service and possible mistakes can occur and therefore it is needed to take into account the competitiveness. 1.1 Problem Statement I am going to answer the following questions and statement; Identification - what are the gaps within service sector in IKEA? Threat – How does IKEA deal with competitiveness in Denmark? Service level –I am going to give suggestions how service could be applied to customers! Methodology In order to complete the task I was given I have to find many kind of detailed information about the company so I can give the answers and analysis of problems that I have stated. IKEA is a large company which give easily access to wide range of information for many kind of topics given. 1.2 An overview of competitiveness First I will have look into competitiveness in IKEA and to do so I must...
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...companies more competitive by approaching social and environmental challenges as unmet market needs that provide business growth opportunities through entrepreneurship, innovation, and organizational change. Permission to reprint this case is available at the BELL case store. Additional information on the Case Series, BELL, and WRI is available at: www.BELLinnovation.org. IKEA AND THE NATURAL STEP In September 1995, Jan Kjellman took over as president of IKEA North America, the U.S. and Canadian subsidiary of the Swedish furniture giant. At IKEA s headquarters outside Philadelphia, Pennsylvania, Kjellman sat at his desk, located in an open, brightly sunlit bay. His assistant, also the service center office manager, sat at a nearby desk a few feet away. Co-workers walked through one side of the bay, heading for the coffee room. On the landing below the president s office was a pedestal bearing a large gray rock. It was from the rocky and poor land in ˜lmhult, a small village in the province of Sm land, Sweden, where IKEA s founder was born and where the design and production core of IKEA s business was still located. Kjellman pondered the success of his predecessor, Gor n Carstedt, who had moved back to Sweden to take responsibility for worldwide marketing and the European retail stores. Carstedt had turned the subsidiary around since 1991, increasing sales to over $700 million and moving the company to number three in the U.S....
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...OPERATIONS MANAGEMENT GROUP PROJECT Report on the Operations Management strategy of Xuan Hoa Furniture and IKEA Prepared for Prof. Noel By - Group 7 - Lê Quang Anh Đỗ Thị Hà Anh Vũ Kim Phượng Nguyễn Thị Mỹ Linh Nguyễn Thị Thùy Linh May 22, 2014 EXECUTIVE SUMMARY Operational management is line management of organizations that highly affect the company’s performance. It is a business function that organizes, coordinate and control the resources needed to produce a good, operational management is a business process to create highest level of efficiency and value add. Operations management is a dynamic field and presents exciting new issues and challenges for operations managers. This is also a very important coursework for everyone of us who want to become a successful leader in the future. For that reason, after completing a 3-week Operations Management course, we – Group 7 would like to present a report about our findings on the comparison of the operations management strategy between 2 companies on the field of furniture manufacturing and retailer: Xuan Hoa Furniture and IKEA. Our report is divided into 9 main parts, each one represents a strategic Operations Management decision. And every main part will be broken into 2 part: one from Xuan Hoa Furniture and one from IKEA. 1. General Introduction 2. Operations Strategy 3. Product Design 4. Managing Quality 5. Process Strategy 6. Location Strategy 7. Human Resources and Job...
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...Application of Critical Success Factor 6 5.0 Discussion of Two ICT’s 9 6.0 How does ICT‘s benefit IKEA company. 14 7.0 Business Case 16 8.0 Cost and benefit Analysis 18 9.0 Conclusion 20 10.0 Refrences 21 * 1.0Executive Summary The purpose of this assignment knows the use of CSF Methodology to identify the ICT that will support IKEA business objective. As we know IKEA is one of the Global furniture companies whose objective is to give inexpensive furniture to all class of people. By this objective our team is able to identify 3 CSF of IKEA * To provide less expensive and better quality product * Creating a Unique Brand image. * To become one in Global distribution network. Further we identified IKEA ICT which supports business process in gaining competitive advantage .By continuous process improvement and Design and product development IKEA was successful in this industry. We have also explained few examples of IKEA technology in improving their inventory and production management. There is a business case on Application portfolio on one such ICT Vendor management Inventory. Detail discussion on implementing this ICT how IKEA is benefited in their Global distribution and inventory management. By end of this assignment we know how information technology and by using this technology in organisation we can reach heights of success. * 2.0 Introduction IKEA was founded by Ingvar Kampard. It has 315 Stores in 41...
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