Transcript IKEA_Final.pptx

Pereya (Pear) Suviwattanachai 931 549 969
Nalinrach (Pook) Suksathaporn 931 549 945
Sithiphon (New) Suwanboriban 931 410 416
Background
• IKEA –> IK = Ingvar Kamprad (founder’s name)
E = Elmtaryd (farm)
A = Agunnaryd (home country)
• Founded in 1943
• Beginning: offered pens, wallets, and clocks.
• Today :
– IKEA Furniture (self-assembly furniture)
– 278 stores in 36 countries
– 522 million visitors
– $28.6 billion USD (Revenue)
Organization
• Motto
“to create a better everyday life for the many people”
• Product range
focuses on good design and function at a low price
• Goal
to reach as many people as possible
• Advertisement
- catalog
- online
- TV ads YouTube - IKEA Nanny Banned Commercial
Store Format
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Large blue buildings
Few windows
One-way layout
The long natural way
Furniture showrooms
House wares
Cashier’s station
Warehouse
Strengths
• Unique Resources
– Value
– Rareness
– Inimitability
– Organization
• Cost-Effective
– Low-price
– Big volume
Strengths
• Strategic Positioning
– “Self-service model”
– Customers willing to trade (off service for price)
– Design by themselves
• Valuable advertising sources
• IKEA catalogue
– 191 million copies 56 editions 27 languages
Strengths
• InternationalBrand Recognition
– Unique philosophy & low price
• Distribution Channels around the world
– Europe, U.S., Asia, Latin America
• Immense experience in designing and
manufacturing
– Cooperating with skilled producers
Weaknesses
• Rely heavily on Europe Market
- 81% of the IKEA department stores are located
in Europe
• Availability
- Most stores are located outside of city centre
- Have to drive a long way to come to the IKEA
Weaknesses
• Several complaints on TV ads
- many of them were banned
YouTube - Ikea Commercial :: Tidy Up
Opportunities
• Opportunity to grow in many more locations
• Seek out smaller markets before entering more
metropolitan locations
– Plus financial strength
• Find less expensive real estate in the suburbs
than in urban locales
Threats
• Competition
- Wal-Mart and Galiform
• Cultural Threats
- Especially in Asia market (TV Ads)
http://www.youtube.com/watch?v=3TO90OV1IME&feature=related
• An increase in shipping & material costs
• Crime
- Shoplifting, breaking in