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Transcript of Marketing
IKEA GROUP STORES WORLDWIDE
In 2011, the IKEA Group opened 7 new stores in 7 countries. As of 31st August 2011, the IKEA Group had a total of 287 stores in 26 countries.
CO -WORKERS PER REGION
North America 16,500
Russia, Asia & Australia 8,000
Sales per region
North America 14%
Russia, Asia & Australia 7%
Thank you for your attention!
Low cost structure
The size of its global business
Low cost product
Limited promotional expenditures
Difficult to enter smaller markets
Economic condition Demand for convenience
"Most things still remain to be done. A glorious future!”
Access to distribution channel
Threat of the new entrants
Little bargain power because there are not many low price options.
Buyers have limited choice among furniture because IKEA’s furniture is unique.
The difficulties to get IKEA to lower furniture price even more.
Bargaining power of buyer
IKEA makes contract with thousands of suppliers to make its product.
IKEA takes bids to make some of their product.
Suppliers have little bargain power.
IKEA’s profit would be more affected by raw materials.
Bargaining power of suppliers
CONRAN- targets a new low cost term in furniture line.
CRATEL & BARREL- offers a furniture in a box which is subject in higher price.
ETHAN ALLEN- aimed at more up- scale market.
WAL-MART- equipped with categorized “must-have” items.
IKEA- successful in delivering the complete package.
Intensity of rivalry among competitors
No specific products that can be a substitute for furniture but IKEA.
Distribution channel problem.
Threat product substitutes
The Five Forces That Shape Industry Competition
UNDER SUPERVISION OF Miss. Asieh Sardabi
IKEA was founded in 1943, by Ingvar Kamprad, he started it when he was 17 years old, selling pines frame pictures and with time he grow his business to be the world knowing now.
General external environment
Key Success Factors
Focus on human capital
align business practices with the organization's mission statement.
influences the entire organization.
enhance stakeholder value
gain sustainable competitive advantage
building and maintaining superior positioning within the industry Examples: Pricing and product differentiation
At IKEA, their core competencies are defined by their key success factors as discussed above –
60 wind turbines
Re-designing of the EKTORP sofa
Replacing incandescent light source with low energy alternatives
Centralized, in-house design of all products
All styles on display in huge warehouse stores
Large on-site inventories
Limited sales help, but extensive customer information
Long hours of operation
Competitive advantage in IKEA
easy to package designs
Wide range of styles displayed
Extensive customer information
On-site, low-cost, restaurants
Flat-packing and self-assembling of the furniture.
Development of new purchasing techniques
Creating specific local purchasing teams
developed durable partnerships with its suppliers
suppliers considered key stakeholders
The IKEA range consists of approximately9,500 products.
IKEA websites had 870 million visits in 2011.