ikea: a swedish company
DESCRIPTION
Ikea: a Swedish company. history , development, and growth of ikea over time . Angelo Gonzalez Brittany Murray Pebbles Gilbert Jasmine Scott Jennifer Katzman. - PowerPoint PPT PresentationTRANSCRIPT
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IKEA: A
SWEDISH
COMPANY
HI S T O
R Y , DE V E L O
P ME N
T , A ND
GR O
WT H
OF I K E A O
V E R T I ME
“At IKEA our vision is to create a better everyday life for the many people. Our business idea supports this vision by offering 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.”
Angelo Gonzalez
Brittany Murray Pebbles Gilbert
Jasmine Scott
Jennifer
Katzman
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HISTORY: IN THE BEGINNING… At the age of five Ingvar Kamprad starts selling matches to his nearby . neighbors and by the time he is seven, he starts selling further afield, A using his bicycle. He finds that he can buy matches in bulk cheaply in Stockholm and re-sell them individually at a very low price but still make a good profit. From matches he expands to selling flower seeds, greeting cards, Christmas tree decorations, and later pencils and ball-point pens.
• Ikea is officially started in 1943 when Kamprad is seventeen years old with a graduation gift from his father.
Originally a discount retailer of basic household goods.
1947 is when Ikea begins to sell home furnishings.
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DEVELOPMENT AND GROWTH• 1940s-1950s• The roots of a furniture dealer.
• 1960s-1970s• The IKEA concept starts to take shape.
• 1980s• IKEA expands dramatically into new markets such as USA, Italy, France
and the UK. • 1990s• IKEA grows even more.
• 2000s• IKEA expands into even more markets such as Japan and Russia.
To get more HISTORY about IKEA visit http://www.ikea.com/ms/en_US/about_ikea/the_ikea_way/history/index.html
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IKEA’S BIG PROBLEM
Being a
Top Reta
iler a
nd Inva
ding America
is no
piece o
f cak
e!
Trouble adapting to the American style & lack of innovation!
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ISSUE: ADAPTING TO AMERICAN LIFESTYLE
Durability• “Low price with meaning”/Poor quality• Scandinavian style design/longevity
America is very different culturally from most European markets:• Different sizes of appliances• Different sizes of beds• Different ideas of comfort• Measured in Metric system instead of the standard system of inches and feet
used in the USA
Challenges
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PERSPECTIVES
A M E R I CA N ’ S
AN D O
W N E R S
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AMERICAN PE
RSPECTIVES
-The products are not reliable
-Unique Style-Job
opportunities
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OWNERS PER
SPECTIV
ES
-Privately owned -1982 IKEA Group is
owned by a foundation
-ownership structure -organization independence -long-term approach
-Franchising -Opportunity for
higher profits
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KNOWLEDGE
S W O T AN A LY S I S
S W O T MA T R I X
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Facts and Figures > Yearly Summary > Welcome Inside 2011http://www.ikea.com/ms/en_US/pdf/yearly_summary/Welcome_inside_2011.pdf
2011 Version of Exhibits 2,3,5, & 6
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THE COMPANIES OVERLOOKTotal of 37 IKEA stores located in America
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SWOT ANALYSISStrengths -Internal strength is employees cost efficient -Price of Product -Material -Manufactures capabilities -Good design and function
Weaknesses -Americans did not like European Style -the cabinets didn’t fit in the kitchen -the sheets wouldn’t fit the beds -the sofas were too hard -kitchen supplies were too small for American preference. -Transportation of products
Opportunities -Expand the online market -allowing more of the products that are visible -Communicate with customers
Threats -Economic recession -People not buying -Hand downs from previous owners
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SWOT MATRIX Weaknesses -Americans did not like European Style -the cabinets didn’t fit in the kitchen -the sheets wouldn’t fit the beds -the sofas were too hard -kitchen supplies were too small for American preference. -Transportation of products
Threats -Economic recession -People not buying -Hand downs from previous owners
Strengths -Internal strength is employees cost effient -Price of Product -Material -Manufactures capabilities -Good design and function
Opportunities -Expand the online market -Communicate with customers
-IKEA can continue to rely on market research and product lineup to help meet Americans needs -Make products in flat boxes and not already pre-set up-Also can add a small fee for set-up, which can create a job for the economy
-They can save more money by making the online market. Can order straight from logistics and do away with creating the store and having employees and rental fees.-Robotic manufacturing to expand the online market
-IKEA has affordable products for customers that will help customers come to their business in a recession-Advertise the affordability of the products
-IKEA needs to be able to concentrate on the American peoples styles -To be global you need to act local-Give the Americans what they want
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POSSIBLE
ACTIONS
Change some of the product offerings and influence some of the American tastes and choice of style:
• Adapt cabinets to accommodate American appliances
• Change bed sizes to the ones commonly used in the United States
• Advertise that furniture is like fashion, you can change on a trend and lifetime commitment is not necessary
• Hire mix of backgrounds & personalities• Promote diversity & infuse new ideas
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CONSEQUENCES
• Adapting to the American style led to• Further expansion within the U.S
• Possible joint ventures
• Beat out competition • Ex. Wal-Mart, Ashley’s & Rooms
to Go
• Hiring a diverse work staff• Fresh innovative ideas
• Met changes in new markets
Positive Negative• Hiring a diverse work staff
• Lack of goal congruence
• Distraction from the common goals
• Waste of resources • getting a diverse group
to agree to a common viewpoint
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REFERENCES http://www.youtube.com/watch?v=KKA98_vKs8AGermany Warehouse http://www.ikea.com/ms/en_US/pdf/yearly_summary/Welcome_inside_2011.pdfWelcome Inside 2011 Cataloghttp://
www.ikea.com/ms/en_US/about_ikea/the_ikea_way/history/index.html
History of IKEA