Analyzing Porter 's Five Forces And Value Chain Analysis Essay

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Established in Sweden in 1943, by a 17-year-old Ingvar Kamprad, IKEA is a multinational group of companies that focus on ready-to-assemble furniture, appliances, and home accessories. The very first IKEA store named Möbel-IKÉA, opened in Almhult, Smaland(Möbel means “furniture” in Swedish), to currently, September 2016, have 389 stores in 48 different countries. With the 389 stores, IKEA successfully creating over €30 billion and over €3.5 billion net profit with the continuous development and expansion.
In a very competitive market, IKEA remains industry leader over the years and decades. The reason why IKEA have the capacity can continue as an industry leader is IKEA able to maintain their Vision “to create a better everyday life for many people,” customer trust and love IKEA vision with their low-price. In this report, will be analyzing Porter’s five forces and value chain analysis. The two tools will enable readers to have a clear understanding on IKEA form internal value to external value, which included not limited to primary activity, secondary activity, internal power, external power and threat of substitution. Bygone through these points above, readers can identify and understand IKEA operational details and strategy they use.

IKEA is a few company that shows the business miracle in this century. From 1943, a boy named Ingvar Kamprad, only 17-year-old and after high school graduated, with the aid of father started his company – IKEA. IKEA
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