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IKEA: Affordable Style & Function

IKEA is a global furniture retailer founded in Sweden in 1948. It operates 390 stores in over 40 countries and has annual revenues of $35 billion, growing at 11% each year. IKEA is known for its functional, affordable design philosophy and large product range. It encourages customers to self-assemble flat-pack furniture to keep costs low and pass the savings on.

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Nirnay Prakhar
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1K views8 pages

IKEA: Affordable Style & Function

IKEA is a global furniture retailer founded in Sweden in 1948. It operates 390 stores in over 40 countries and has annual revenues of $35 billion, growing at 11% each year. IKEA is known for its functional, affordable design philosophy and large product range. It encourages customers to self-assemble flat-pack furniture to keep costs low and pass the savings on.

Uploaded by

Nirnay Prakhar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Introduction

Founded in year 1948 Named after its Founder Ingvar Kamprad, family farm Elmtaryd and native village Agunnaryd. Started as mail order company First store opened in Agunnaryd in 1951 Catalogs as source of promotion : 110 million printed last year. Immense opposition from furniture manufacturers cartel. Passing the savings to customer. Providing stylish and functional furnitures at affordable prices.

Quick Snapshot
Revenues: $ 35 billion. Growth rate : 11% Presence in 40 countries. 390 stores. 90% owned by IKEA. Suppliers from 51 countries. 2600 suppliers. Privately owned.

IKEA Concept
Vision
To create a better everyday life for many people

Business Idea
To offer a wide range of well designed ,functional home furnishing products at prices so low that as many people as possible will be able to afford them Market Positioning Statement

Your partner in better living. We do our part, you do yours. Together we save money.

IKEA Value Proposition


Great functional design
Easy to use, practical and yet attractive are the mantras for IKEA design.

No frills approach. Extensive range and variety.


10000 products: complete range of home furnishings.

Encourage self service. Right Quality (eg. Bookshelves)

Customer value
IKEAs pricing strategy is not plain low price but value for money.

Close supplier ties.

Doing it the IKEA way!!!


Design
Use design to secure the lowest possible price. Innovative processes to create functional products. Products designed for Flat Package We dont transport air. Large Blue buildings with yellow accents. Multi storied. Layout designed in its entirety. Maximum use of daylight. 20% of stores are solar powered. as-is area. Bargain counter.

Contnd.
Location
Located outside city centers [Link]-1 lakh [Link].

Timings
8 am- 12 pm. Country specific management style. 24*7

Restaurants
Serving traditional Swedish food. Few local cuisines. Free refills of beverages.

Grocery store Child care


3-10 years old.

SWOT Analysis
Strengths
Brand Image Wide range of products Functional design Furniture is easy to assemble and ship One stop shopping Facilities: Restaurant, child care Strong global sourcing capabilities Affordability Flat pack

SWOT Analysis
Weakness
Assembling of furniture by yourself might be unappealing to certain set of consumers. Relatively few locations. Furniture is not built to last lifetime.

Opportunities
Untapped markets Different type of stores such as high end labels. Increase online sales and internet presence.

Threats
Indirect threats from Wal-Mart, Home depot.

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