„Small spaces –creating places…“

1. „Small spaces –creating places…“ …and be part of the community

2. The Analysis of IKEA

3. Introduction of IKEA 俞方舟 张敬 SWOT-- the Strength,theweakness and Oopportunity and the threat “4p”--- 文本目录 “4p”--- 文本目录

4. The introduction of IKEA Speachmaker: 俞方舟

5. Introduction • IKEA is tofuriture what McDonald's andKFC is to the catering industry, wal-mart, carrefour to supermarket. • IKEA :Build Up In 1943 In Sweden;By IngvarKampra; • Seven stors in China ,a storeshenyang

6. Introduction Cont' • Seat/sofa, office supplies, the bedroom series, the kitchen series, lighting series, textiles…… 10000 kinds of products. • global procurement mode, 16 purchasing trade area. The south China area, the central China area and north China area

7. Introduction Cont' • Business Idea Providing a wide range of beautiful and practical household items at an affordable price. • management concept customers and social interests as the center; and protect environment as their social responsibility

8. Strength • IKEA has 100 years history and deep Nordic culture; Concise and clear design style • One of top 500 companies, High brand awareness • Integrate design, produce and sale

9. Strength • The sales model of exhibition hall; • a restaurant and children's entertainment area

10. Strength • Environmental; good corporate image eg.In 1986, ikea began with the German no.e1-Norm standards. In 1996, all the ikea stores began offering our customers the old furniture recycling service for reuse processing;

11. Strength • Flat packaging transportation; Self-help delivery. • high performance ratio • company listed make capital advantage

12. The weakness and the opportunities and of IKEA'S operations Speachmaker: Zhang Lei

13. Weakness • There are seven parts • The cost of raw materials increasing • Poor quality and complained transport service • New product development cycle is long and the cost is too high • The problem of the product suppliers and the global supply chain is too long • Positioning deviation • Cross regain products and culture have much different • The customer delivery to a certain extent,cause loss of customer satisfaction

14. Weakness Cont's The cost of raw materials increasing • "Four ladder" pattern • Wood from the well-run forest or having certification standards recognized by IKEA not from INF or a high degree of conservation value forest

15. Weakness Cont's Poor quality and complained transport service • wood in Chinese market no Forest certification mark • not transport the products for consumers on time New product development cycle is long and the cost is too high • import and export tax • transportation high

16. Weakness Cont's The problem of the product suppliers and the global supply chain is too long • global sourcing range 17 purchasing area one country • One product or raw materials different countries

17. Weakness Cont's Positioning deviation • Price positoning not suitable for consumption in China • The level of consumption is not clear • The reputation is good, but the profit is not desired Cross regain products and culture have much different • IKEA : Nordic contracted and natural style • Other household market in China: noble and luxurious

18. Weakness Cont's The customer delivery to a certain extent, cause loss of customer satisfaction • IKEA: After-sales service, delivering charges and installation by own • Other household market in China: door-to-door service and installation service.

19. Opportuninties • The same business model of brand products is less and concentration is not high • The furniture product is the necessities of life for people and the market is large • It is the advantage of the labor cost of the producing countries, such as China and India • With the level of income increasing, the purchasing power is also increasing • The global environmental awareness is enhanced, which is the same as the philosophy of environmental protection in IKEA • The real estate market is increasing that lead to the increasing of furniture • The product of mass positioning are more fit for consumer demand of the main body of the ordinary people

20. The Threat and Conclusion of IKEA's operations Speachmaker: Jiang Yuting

21. Threat IKEA had been silent last for seven years when it entering to the Chinese market. Because IKEA is suffering the brand gap & cultural difference.

22. Main Threats • More intense competition • Unstable supplier • Slow growth in recent market • New Labor Law in China • Increased demand for products due to Environment Law • Vicious competition due to nonstandard Chinese furniture market

23. 1. More intense competition As a developing & emerging country, many industries in China are competitive. So, IKEA faces more intense competition.

24. 2. Unstable supplier The global purchase strategy contributes to the threat of unstable supplier for IKEA.

25. 3. Slow growth in recent market Due to many companies enter to furniture market, IKEA’s market shares in China grow slowly.

26. 4. New Labor Law in China

27. 5. Increased requirements for products Chinese Environment Protection Law adds higher requirements to the products.

28. 6. Vicious competition

29. Conclusion Through research we solve the issues: • Why is the sales performan of IKEA in China lower than other countrie? • What should IKEA in China do through analyzing the SWOT model?

30. Recommendations IKEA should adjust itself to be suitable for Chinese market. Main factors:

31. Recommendations Cont's • New sales channel: e- commercial • New promotion: bus body advertise • Expand sales group: real estate with hardcover Housing Hotel, such as 7days, Hanting Hotel • Higher consumption group: personal custom- designed furniture

32. Thank You For Your Listening!