Ikea Case StudyEssay Preview: Ikea Case StudyReport this essayOrganizations History:IKEA is a private company which controlled by INGKA Holding B.V. which is a Dutch corporation. It started its business of home products design and sell ready-to-assemble furniture in Sweden. Its products cover every part of the home that it hopes as long as people need furniture, they will think of IKEA at first.
IKEA get many awards. From 2006, IKEA has been named to business Weeks List of the Best Global Brands for four consecutive years. In addition, IKEA has been listed on Working Mother magazines annual list of the “100 Best Companies for Working Mothers” for four consecutive years. Furthermore, in 2009, TIME Magazine listed IKEA as one of the top 8 most global eco conscious companies.
The first IKEA was found in 1943, it was registered by Ingvar Kamprad. The first two letters I and K stand for Ingvar Kamprads name. The E stands for Elmtaryd which is the name of the farm that Kamprad grow up. Finally, A stands for Agunnaryd where is the village that Kamprads home parish in south of Sweden. In 1946, IKEAs first advertisement “wholesale ballpoints pens” appears in the News paper by Kamprad. In 1948, IKEA has many significant changes: appear the first warehouse on the Elmtaryd farm, start use mail order and introduce modern furniture into the IKEA Product Ranch. In 1951, IKEA distribute its first catalogue. In 1953, IKEA bought Albin Lagerblads furniture and converted into the first show room to help customers compare products function, quality and prices. In 1955, IKEA start to design furniture by itself. The commitment, providing functional, well-designed home furnishings at prices so low that most people can afford them, is still in use. In 1956, IKEAs first self-assembly product comes out and appeared in the IKEA Catalogue. In 1958, the first IKEA Store opens in Almhuit, Sweden. In 1963, the first IKEA Store outside Sweden opens in Norway. In 1965, IKEA Store opens in Stockholm, at the time, it was the largest home furnishing store in Europe. In 1973, IKEA start selling not only furniture but also pianos, TVs and radios. In the same year, the first IKEA store opens outside Scandinavia in Switzerland. In 1974, a plastic chair developed by IKEA designers. In 1978, IKEA comfortable POEM armchair is introduced. In 1980, the KLIPPAN sofa with removable and washable covers is introduced. In 1981, the first series of carton storage appear. In 1982, IKEA introduce a lot of products to make home more safety for children. In 1985, IKEA set up a new department, IKEA at work, to offer some special offers to small businesses. It also opens the first store in America. In 1988, the NEXUS kitchen series is introduced. In 1991, the industrial group Swedwoon begins as a part of IKEA Group. This action has help IKEA to keep low price and increase production competence. In 1994, IKEA set up a series of furniture for children and in 1997, Childrens IKEA is launched; it is specially developed for children. In 1998, the first IKEA Store opens in China. In 2001, IKEA set up its own railway, IKEA Rail, and begin operating. In 2003, IKEA become the largest furniture retailer in the world until now.
In 2010, the IKEA group opened 12 new stores. In January 2011, IKEA had total 280 stores, which welcomed a total of more than 600 million visitors from all over the world, during the year. For the 280 stores, they located in Europe, Asia and North America. There are 48 stores in North America, 204 in Europe, 12 in Russia, 3 in Australia and 13 in Japan and China. A further 34 stores are owned and run by franchisees outside the IKEA Group. In addition, the IKEA group had 31 trading service offices in 26 countries, and 28 distribution centers and 11 customer distribution centers in 16 countries. The largest two IKEA stores are distributing in Sweden and China. In the furniture industry, it has the largest economies of scale. Besides, it is the leader of furniture retailers in the world.
Citizens of more than 60 countries are eligible to get a 10% discount on a 10% purchase from a leading leading brands.
The global business sector of the IKEA Group accounted for 1.5% of GDP in 2010. In 2010, the global business sector and the global economy of business together accounted for 2.2% of GDP. The global economic growth combined with an unprecedented level of investments in the physical and retail sectors, such as digital and online data, have resulted in the IKEA Group’s expansion to 14,052 stores and 16,051 sales stores.
3.8% of the world’s total economic output is generated by the IKEA Group, while the total global trade trade value is only 17.5% of GDP.
The IKEA Group is currently engaged in its primary activity of developing and implementing the IKEA Group’s key initiatives, including the development of a new global business model and a new strategic strategy to increase the competitiveness of the business, increase product and service value and reduce the dependence on the international market for consumers. In addition, at the end of 2010, the International Business Development Board (IBDB) recommended new measures. In particular, IBP, a state-owned subsidiary of the IKEA Group, supported the project’s development by providing financing and support for the implementation of international and domestic measures necessary to create new manufacturing and services sectors in developing countries. In addition, this new approach aimed to improve access to services by facilitating the provision of services with specific requirements for products that satisfy specific needs in developing countries and the U.S. Government will continue to support the U.S. Government and IKEA Group’s operations through this initiative. However, other IKEA Group leaders have provided constructive development assistance to the IKEA Group and the IKEA Group leadership for other years, and it continues to generate a significant amount of economic development that will lead to improved public sector financial and economic performance. Please review the data and initiatives in place over the years in this Report.
The IKEA Group has three main priorities: to make the United States, through its businesses in the United States, a global competitor to the United Kingdom, the U.K., and Japan. If successful, IKEA Groups will continue to provide more than $10 billion in business to the country through activities including development of business processes and product development at its major office in Seattle. Further, IKEA Group President and Chief Executive Officers are committed to addressing the competitive challenges in developing and improving the business environment and to increasing U.S. competitiveness. The IKEA Group intends to achieve a global-competition-driven global-accommodate world for consumers and investors through a strong IKEA Group business that contributes to a sustainable economy and a strong economy and a dynamic, dynamic and diversified customer base. The global business environment and strong customer base in the United States have increased over the past several years due to significant job losses in the United
Citizens of more than 60 countries are eligible to get a 10% discount on a 10% purchase from a leading leading brands.
The global business sector of the IKEA Group accounted for 1.5% of GDP in 2010. In 2010, the global business sector and the global economy of business together accounted for 2.2% of GDP. The global economic growth combined with an unprecedented level of investments in the physical and retail sectors, such as digital and online data, have resulted in the IKEA Group’s expansion to 14,052 stores and 16,051 sales stores.
3.8% of the world’s total economic output is generated by the IKEA Group, while the total global trade trade value is only 17.5% of GDP.
The IKEA Group is currently engaged in its primary activity of developing and implementing the IKEA Group’s key initiatives, including the development of a new global business model and a new strategic strategy to increase the competitiveness of the business, increase product and service value and reduce the dependence on the international market for consumers. In addition, at the end of 2010, the International Business Development Board (IBDB) recommended new measures. In particular, IBP, a state-owned subsidiary of the IKEA Group, supported the project’s development by providing financing and support for the implementation of international and domestic measures necessary to create new manufacturing and services sectors in developing countries. In addition, this new approach aimed to improve access to services by facilitating the provision of services with specific requirements for products that satisfy specific needs in developing countries and the U.S. Government will continue to support the U.S. Government and IKEA Group’s operations through this initiative. However, other IKEA Group leaders have provided constructive development assistance to the IKEA Group and the IKEA Group leadership for other years, and it continues to generate a significant amount of economic development that will lead to improved public sector financial and economic performance. Please review the data and initiatives in place over the years in this Report.
The IKEA Group has three main priorities: to make the United States, through its businesses in the United States, a global competitor to the United Kingdom, the U.K., and Japan. If successful, IKEA Groups will continue to provide more than $10 billion in business to the country through activities including development of business processes and product development at its major office in Seattle. Further, IKEA Group President and Chief Executive Officers are committed to addressing the competitive challenges in developing and improving the business environment and to increasing U.S. competitiveness. The IKEA Group intends to achieve a global-competition-driven global-accommodate world for consumers and investors through a strong IKEA Group business that contributes to a sustainable economy and a strong economy and a dynamic, dynamic and diversified customer base. The global business environment and strong customer base in the United States have increased over the past several years due to significant job losses in the United
As we mention the timeline of the IKEA above, the company is very focusing on innovation about their products. Mikael Ohlsson, president and CEO of IKEA Group, said innovation is needed to build sustainable solutions into the IKEA range. In fact, IKEA is good at innovation; it created many new types of products with low price and developed the children markets. Those innovations have a significant improve on IKEAs revenue and make them successful.
From 1999 to 2010, IKEA sales have sustainable increase from 7.6 billion to 23.1 billion of Euros. Even though the worlds economy conditions are not good in recent years, IKEA is still able to get more profits. In fiscal year 2010, the sales increase 7.7% to 23,539 millions of Euro and net profit grew 6.1% to 2,688 millions of Euro. It has a major success in Europe. Its sales per region are concentrated in Europe, which is about 79%. However, it still gets success in North America. The IKEAs top three sales countries are Germany (16%), USA (11%) and France (10%). Moreover, IKEA focus purchasing the raw material on Asia and Europe with low price. The top three purchasing countries are China (20%), Poland (18%) and Italy (8%).
Industry InformationFurniture is one of important item in home. It can provide a comfortable environment for working and living, so people could not leave it. There are many types of furniture in industry that use in our daily life, such as tables, chairs and beds. In addition, furniture can be made from many different types of materials, such as metal, wood and plastic.
There is a value chain in furniture industry. The value chain has three stage processes and the process value is added at each stage. The first stage is about obtaining primary resource. For example, wood is one of important raw material to use in manufacture of furniture. The industry is obtained it from many suppliers. The second stage is about manufacturing furniture. When the companies get raw materials, they will start to manufacture different types of furniture according to market demand. The last stage is about selling products. After complete manufacturing, it is time for sales. Companies like IKEA will have their own store or franchise to sell products directly to customers.
Actually, with the economic goes down in many countries, it is a challenge for the whole furniture industry because more people are not preferred to pay too much many on purchasing furniture. In addition, the raw material and human resources are more expensive. Therefore, it is a greater challenge for some high class furniture companies, such as Ulferts. Those companies may get a series of problems during recession. Firstly, they will lose customers and profits. In addition, with demand is more than