Ikea Home Furnishings : Ikea

IKEA pursues sustainability in a big way which is why competitors could learn from their company. IKEA has a wide variety of products under its label. Today, 71% of all IKEA products are recyclable, made from recycled materials, and or both (A.Jefferies, 2009). In addition to this, Ikea recycles 84% of waste generated in its stores. IKEAs sustainability focuses on four components: products and materials, suppliers, climate change, and community involvement. IKEA bases

In order to assess and give recommendations to IKEA, it is important to fully understand the operations and the values that drive the company, ant its philosophy. Since was founded in 1954 by Ingvar Kamprad the Swedish company’s vision of “creating a better life for the many people” inspired them to develop high quality and lower cost products in the furniture business, and almost a decade later, after they consolidate in the Swedish market, they made the decision to expand abroad opening stores in Northway and Denmark respectively (Exhibit 1). With a relatively rapid expansion the company needed to transmit their unique philosophy and created the testament of a furniture Dealer and trained ambassadors to help spread and secure the firm’s values (Exhibit 3). Furthermore, IKEA’s adopted another principle, the company preferred to focus on establish close ties with business partners and supporting their suppliers in a long-term relationship rather than just

The services and products offered by IKEA provide value to its customers in various ways. For one, the products and services are very affordable. The products and services are not priced highly and therefore, the average customer can enjoy them. At the same time, the products are of high quality. From IKEA’s slogan “low prices but not at any price”, it is clear that the company prices its products lowly but that does not mean that the quality is compromised. IKEA satisfying its customer’s needs through providing them value for their money as they provide quality products that will last for a long time, and at affordable costs. The fact that the company has set the minimum acceptable standards for its wood, implies that it is also keen on quality and on the environmental impact of its action of making furniture ( Edvardsson, Enquist & Hay, 2006).

IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international

IKEA is considered to be a low cost, high quality producer in the furniture industry, therefore it is important to

Ikea was founded in 1943 when Ingvar Kamprad was given the Ikea name by his father. Ikea stands for; Ingvar Kamprad elmtaryd Agunnaryd, the son 's first and last name and the farm and village where he grew up. The first Ikea sold small items such as pencils, table runners and nylon stockings, all for exceptionally affordable prices. Ingvar knew he had found a system that worked, by 1945 he had expanded. Ingvar started advertising in local newspapers and began a do-it-yourself mail order service, where goods were transported by the local milk van to the train stations. In the early 1950 's Ikea published a magazine discovering that customers wanted more, forcing Ikea to innovate. In 1953, the first "hands on" Ikea

The founder of IKEA, Ingvar Kamprad registered his firm 1943. In 1958 he opened his very first IKEA store in Älhult, Sweden. From that moment, IKEA have continuously expanded by invaded new countries and opening new stores. Today IKEA is one of the leading home furnishings brands in the world with more than 235 stores in more than 30 countries. From being a one man enterprise IKEA now have astonishing 110,000 co-workers and a turnover of over 20 billion Euros on a worldwide basis (IKEA website 2008).

IKEA’s mission mainly focuses on sustainable long-term growth by capitalising in the future which bring advantages to the employees, customers and suppliers. IKEA invest majority of its profit back into product development, into the business,

We believe what is good for society is good for IKEA. We are passionate about creating a successful business where we act in a responsible way through small and large actions. It is a way of being. This is why sustainability is a cornerstone in the IKEA strategic direction – it is highly prioritized and serves as a driver of further innovation and development. Economizing with resource, finding new ways of doing things and developing our knowledge and expertise are important parts of our business idea and heritage. A low price company must be a low cost company, and this includes being careful with earth’s limited resources. IKEA has unique capabilities and tremendous enthusiasm to make a positive contribution across the world – from the forests of Siberia to the cotton fields of India and all the way into people’s homes in New York, Lisbon and Shanghai. Our customers rightly expect us to not only to make our products in a responsible way, but also to help them live more sustainable

IKEA is an international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories. The company is the world 's largest furniture retailer. It was Founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, the company is named as an acronym comprising the initials of the founder 's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home parish.IKEA has 300 home furnishing superstores in 35 Countries and was visited by some 583 million shoppers. Ikea low priced elegantly designed merchandise displayed in large warehouse stores, generated sales of $21.2 billion in 2008, up from 4.4 billion in 1994. The feeding company sold fish, charms magazine and seeds from his family farm. His first business had been selling matches, the enterprise Kamprad purchased them wholesale in 100 box lots and then sold individually at a higher mark up.

Price – In terms of price, the author will analyze IKEA’s pricing strategy to see what kind of pricing strategy IKEA uses such as premium pricing or economy pricing, promotional pricing or value pricing? IKEA always attempts to provide low prices. The author will analyze the pricing strategy using links available at IKEA student webpage (How IKEA creates its low prices, IKEA products are manufactured all over the world) and will provide an overview on how IKEA is able to achieve low prices.

There are two hundred and fifty three of IKEA FAMILYs over the world and five hundred and sixty five millions of visitors. The sales volume grow up to one point four billion Euro from 2007 to 2008. “Low price and good quality” is the most important thing to IKEA. Low price is not equal to poor quality, on the contrary, quality show the valuable brand.

c. Ikea use resources wisely. Ikea's products are making for saving energy or sorting waste. Also they use recycle material. And Ikea works actively to reduce its climate impact on change. IKEA works actively to reduce its impact on climate change and IKEA products must be produced under acceptable working conditions by suppliers that take responsibility for the environment. A favorite example of this is our flat packing. It reduces cost, and minimizes the amount of transport involved, which lessens the

IKEA’s strategy before the mishaps in America could be characterized as going against the norm charting their own path to success using low priced manufactures to secure lower selling prices aimed to target those who were of older age and of middle class standing. Their new strategy was to target those of a younger demographic, young married couples, college students, and 20-30 something singles. By reemphasizing design, promoting through hip quirky advertisements, and encouraging consumers to do away with their old furniture, IKEA revenues doubled in a four-year period. IKEA today has adapted somewhat of a local customization strategy where their store layouts will resemble that of many local household layouts as proven by their success in China where they failed to expand beforehand. They also keep their prices extremely low in some areas as China by sourcing a large percentage of products in the area of operation.

Swedish company IKEA is a mass market producer of cheap and stylish home furnishings that appear to transcend national boundaries. The company was founded in 1943 by Ingvar Kamprada small town handyman from southern Sweden, who devised the company name by combining his initials with the first initials of his farm (Elmtaryd) and the parish (Agunnaryd) where he was raised. Today IKEA’s business mission is clear. In the words of the company founder, “We shall offer a wide range of furnishing items of good design and function, at prices so low that the majority of people can afford to buy them.”