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IKEAPresented by:

Danny Reyes, Feifei Zhong ,

Candy Zhong, Michelle Chen.

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Overview Introduction History

Current Situation

SWOT Analysis

Global Challenges

Industry Analysis

Competitors

Recommendations

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Introduction

Founded:1943 in lmhult, Smland,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)-Founders first nameK (Kamprad)-Founders last name

E (Elmtaryd)-Farm where he grew up

A (Agunnaryd)-Home villageLogo- Blue & Yellow;

The colors of Swedish National Flag.

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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

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History: first store around the world

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 Grabinskidesigned MTP Bookcase.

1974: Olle Gjerloy

Knudsen and TorbenLind designed SKOPAChair.

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History: important designs in the past

1985: Niels Gammelgaarddesigned 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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Mission statement

The IKEA vision globally is to create abetter everyday l i fe for the many .

At IKEA Tempe we are dedicated to givingto the local community will beingregarded by out customers and co-workers as a social responsible company"

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nternational 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

Sales by regionAsia + Australia 3 %

North America 16 %

Europe 81 %

Top 5 sales countriesGermany 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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Global Challenges

Other markets China:Price: low high

Service: DIY have bulk productsdelivered and installed

Design: fashion and short-term ; tendto be discarded

durable and practical

Transportation: congestion, chaos congestion, chaos

Language: product name: cause originalmeaning distortion even

lawsuit

cause original meaning

distortion even lawsuit

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Global Challenges

Europe United States

products: short-term commodities have a habit to attach to oldstuff, not change frequently

Lifestyle: hang up (Italy) ;small dining table and sofa;

subdued Scandinavian color

(Sweden)

folded;

big dining table and sofa;

bold color (Californias

Hispanics)

Transportation: congestion, chaos congestion, chaos

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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 centurythe 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 andtransparent plastic

RTA--ready-to-assemble furniture

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Industry Analysis

Global issues

Global remaining forest

IKEAs environment responsibility

IKEA does not accept timber, veneer,

plywood or layer-glued wood from intactnatural forests or from forests with a

clearly defined high conservation value.

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Original intact forest extent

Current forest cover

Remainin 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 adultsand 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; betterthan 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 smallportion

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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Home

-Is the most importantplace in the world!

www.ikea.com

East, West, Home is the Best

Vinayak chennuri Ankita guruda Jatin thomas Prathamesh patil

Thank you

Arvind Manisha

http://www.animationfactory.com/http://www.animationfactory.com/