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IKEA. IKEA, the famous Sweden furniture retailer, opened its first store in United
States in 1985. ... IKEA is planning to open another eight stores next year. ...
ikea. ... IKEA customers help to keep prices low by picking their furniture up at their
store's warehouse, transporting it home and assembling it themselves. ...
IKEA case. 1. What were the sources of IKEA's successful entry into the furniture
retailing business in Sweden? ... 4. What challenges lie ahead for IKEA? ...
IKEA Case. Since its creation in 1943, IKEA has created many firm-specific
advantages for itself. First, IKEA has standardized the ...
Ikea. ... IKEA has a total of 118,000 employees working full time as of 2007. IKEA was
first incorporated in 1943 in Sweden, and was called as Ikea Svenska AB. ...
Submitted by malmoul on March 27, 2008
Category: Business
Words: 282 | Pages: 2
Views: 182
Popularity Rank: 63,508
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Submitted by petter78 on November 3, 2005
Category: Business
Words: 2617 | Pages: 11
Views: 838
Popularity Rank: 4,875
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Introduction
IKEA states in their business idea: "We shall offer a wide range of home furnishing items of good design and function, at prices so low, that the majority of people can afford to buy them"(IKEA 2005). IKEA manage to keep costs low by their superior relationship with their suppliers were they buy low-cost components in huge quantities. Together with efficient warehousing and customer selling service it passes on to customers resulting in lower prices, anywhere from 25 - 50 % lower than its competitors. However, at the same time they manage to operate with 8 - 10 % profit margins, much higher than the industry average (Norman and Ramirez.1993).
We have made a short and simple SWOT analysis to get an overview their capabilities.
Strengths Weaknesses
High variety offering ' right range of products
Higher margins than competitors
Economies of Scale
Logistics - inventory management
Long term relations with suppliers
The business culture
Organisational capabilities ' adapting change
Market leader - Category killer
High service level - few stock outs
Low lead time
Good product information Too big ' may increase bureaucracy
Franchising ' higher control cost
Mass marketing 'expensive
Charismatic leader ' hard to replace
Search cost ' for cheaper components
Market surveillance ' keep up with trends
Opportunities Threats
Expanding Asian market
New technology ' may lower marketing cost
More focus on environmental issues New trends 'individualism
Time is money ' people do not have the time to put products together
Too dominate...
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