IKEA

1. IKEA Presented by: Danny Reyes, Feifei Zhong , Candy Zhong, Michelle Chen.

2. Overview • Introduction • History • Current Situation • SWOT Analysis • Global Challenges • Industry Analysis • Competitors • Recommendations

3. Introduction • 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

4. 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.

5. 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

6. 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

7. History: important designs in the past 1963: Marian Grabinski designed MTP Bookcase. 1974: Olle Gjerloy Knudsen and Torben Lind designed SKOPA Chair.

8. History: important designs in the past 1985: Niels Gammelgaard designed MOMENT Sofa. 1994: KUBIST Storage Units appeared.

9. Current Profile • Focus on kitchen and bedroom • “Sleep Revolution” • High-quality, Lower-price products

10. Future Profile • Internet business • Environmental protection

11. 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"

12. International business IKEA stores around the world： "United States, Denmark, Germany, Spain, Israel, Saudi Arabia,"

13. Production • 1)Long terms commitments with its suppliers • 2)IKEA recycles its “five most waste materials”

14. 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

15. 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 %

16. Labor • 1)2006 IKEA had over 104,000 employees • 2)many freedoms for its employees • 3)two weeks of training

17. SWOT Analysis Strengths • 1) Marketing strategy • 2) Brand recognition • 3) Financially • 4) Low cost/ wide range of products

18. SWOT Analysis Weaknesses • 1) No main competitors Opportunities • 1) Carpets

19. SWOT Analysis Threats • 1) competitors • 2) new fashions, fads, or cultures • 3) recessions and declining economies

20. SWOT Analysis Threats • 1) competitors • 2) new fashions, fads, or cultures • 3) recessions and declining economies

21. Global Challenges

22. Global Challenges

23. 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

25. Industry Analysis Trends: • Color--bright color • Form --follow the nature • Materials--textured surfaces and transparent plastic • RTA--ready-to-assemble furniture

26. 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.”

27. Original intact forest extent Current forest cover Remaining frontier forest

28. Competitors Euromarket Designs Inc. Galiform plc Wal-Mart Stores, Inc.

29. 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)

30. 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.

31. 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

32. 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

33. 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

34. 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

35. Short-term Recommendations • Classify product standards (2)Carpets

36. 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

37. Danny Reyes Michelle Chen Candy Zhong Feifei Zhong www.ikea.com • Home • Is the most important • place in the world! East, West, Home is the Best！ Any Questions? Thank you 