1. home and garden
2. home furnishings

IKEA
Presented by:
Danny Reyes,
Candy Zhong,
Feifei Zhong ,
Michelle Chen.
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Overview
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Introduction
History
Current Situation
SWOT Analysis
Global Challenges
Industry Analysis
Competitors
Recommendations
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Introduction
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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.
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History
 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: first store around the world
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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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Future Profile
 Internet business
 Environmental protection
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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
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Global Challenges
Other markets
China:
Price:
low
high
Service:
DIY
have bulk products
delivered and installed
Design:
fashion and short-term ; tend to durable and practical
be discarded
Transportation:
congestion, chaos
congestion, chaos
Language:
product name: cause original
meaning distortion even
lawsuit
cause original meaning
distortion even lawsuit
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
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 extent
Current forest cover
Remaining 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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www.ikea.com
Danny Reyes
Michelle Chen
Candy Zhong
Home
-Is the most important
place in the world!
East, West, Home is the Best！
Thank you 
Feifei Zhong