Freddy Skarbø Petter Haugarvoll Bjørn G. Bergem

Freddy Skarbø
Petter Haugarvoll
Bjørn G. Bergem
The Beginning
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Founded by Ingvar Kamprad in 1943
First store opened in 1953
Begins testing flat packages
First store outside Sweden opened in
1963 (Norway, Oslo)
186 stores in 43 countries
IKEA Value Chain
Suppliers and Purchasing
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1.800 suppliers in 55 countries
Purchase most products from Europe,
but also from Asia
Manufactures many of its products
through IKEAs industrial group
Swedwood
Swedwood was founded in 1991 and
consists of sawmills and factories
Products/Range
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76.000 employees in 43 countries
Turnover for the financial year 2002 was
11,3 billion euro
Sells more than 10.000 articles
Product Development Company consist
of 760 employees.
Children’s IKEA
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The launch of Children’s IKEA in 1997
IKEA Catalog
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Worlds largest printed publication
Main task is to lure customers to their
stores for a whole year
131 million copies
23 languages and 45 different editions
Also ’Kitchen brochure’, ’Office
brochure’, ’Bedrom brochure’ etc.
Evans & Wurster
Businesses compete on the elements
 Reach – how buyers and sellers most
effectively can find each other
 Richness – ability to emphasize product
attributes and/or reinforce branding
 Affiliation – whose interests in the value
chain the business represents
Richness and Reach
RICHNESS
The quality of the information
1. Bandwidth
2. Customization
3. Interactivity
4. Reliability
5. Security
6. Currency
REACH
The number of people exchanging information
The trade-off blown up
RICHNESS
Enablers
• Connectivity
• Dissemination of
standards
New levels of
richness and reach
attainable
REACH
Deconstruction
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Competitive advantage “de-averaged”
Intensified competition
Information businesses inherit new value
New opportunities for physical businesses
Disintermediation
Navigators emerge
Disintermediation
RICHNESS
New approach
Traditional
approach
REACH
Navigators
Competition is to aid customers to navigate towards
your company’s products.
The navigator will compete on
 Reach – the size of the universe across which it can
navigate
 Richness – the quality and customization of the
information delivered
 Affiliation – the closeness with which the navigator
identifies with the interests of its client, and serve as
agent for the client’s interests
IKEA – new business model
RICHNESS
Segment-of-one
Alliances
Virtual design
Online ordering
Web catalogue
REACH
IKEA versus Stordal Møbler
RICHNESS
Stordal
IKEA
REACH