Anglia Ruskin University
LORD ASHCROFT INTERNATIONAL BUSINESS SCHOOL
REPORT ON IKEA IN CHINA
Contents
1. Introduction 2
History 2
Store 3
Resources and capabilities of IKEA 3
Mission 3
Vision 3
Product range 4
Market segmentation 4
Goal of IKEA in China 4
Analyzing the Chinese Market 4
2. IKEA’S OPERATION IN CHINA 5
Challenges faced by IKEA in China 5
Marketing strategy of IKEA in China 6
3. EXTERNAL ANALYSIS 7
4. INTERNAL ANALYSIS 8
Value chain analysis- 8
Capability analysis- 8
SWOT Analysis 8
• Strengths 9
• Weakness 9
• Opportunities 10
• Threats 10
PESTLE Analysis 10
Porter Five Forces 12
5. Discussions/Conclusion 13
6. Reference 13
1. Introduction
History
IKEA is a multinational group of companies, popular for its design and marketing of ready to assemble furniture, appliances and home accessories. It was established by Ingvar Kamprad in 1943 in Sweden. IKEA has derived its name from the initials of Ingvar Kamrad, Elmtaryd (farm where he was raised up) and Agunnaryd (his birthplace in South Sweden). Since January 2008, it is world’s biggest furniture retailer. IKEA owns and operates 325 stores in different regions of the world and is well-known for its architectural eco-friendly designs, diversity in appliances and furniture (Inter IKEA System BV, 2009). It has become one of the world’s largest home furnishing retailers (Jonson, 2008) & has been ranked 44th in 2002 among top brands beating big brand
IKEA is an internationally known home-furnishing retailer, with over 300 stores in 40 countries, that specializes in products
The rapidly growth in sales of IKEA in its own country thanks to its innovative new concept in furniture and its reinforcement with polish suppliers, during the 1950s and 1960s, gave to IKEA the option to consider in going further of Swedish borders. Thus, in 1963 was opened the first Store in Oslo capital of Norway. This first step was a guideline to continue the expansion process IKEA has started, and helped to strengthen the internal market in Sweden with the opening of the biggest store in Stockholm in 1965, and the second international store in Denmark in 1969.
IKEA is an abbreviation of Ingvar Kamprad Elmtaryd Agunnaryd. The initials come from the name of the founder, the farm where he grew up and his home parish. The firm has grown rapidly since it was founded in 1948. From a very young age, Kamprad started selling furniture and he always kept his low costs - so low that other furniture stores pressured the National Association of Furniture Dealers in Sweden to stop providing Kamprad with products. The first store of IKEA was opened in Almhult, Sweden. The next stores are in
IKEA is the world’s largest furniture retailer, specialising in selling stylish, inexpensive, self assembly Scandinavian design furniture, home accessories, kitchens and bathrooms in their retail stores around the world. Delivering good quality contemporary design furniture to the middle class consumer is not the only focus of the IKEA group; it also sells a lifestyle that customers around the world recognise and embrace. IKEA is a global company that has invested and is present in many countries; it promotes its products and services using the same brand in all markets coordinated from its one main corporate office in Sweden which is responsible
Ever since I was a young child I always wanted to create the next newest and biggest invention. For example, when I found out the creator of Jibits for crocs (those small plastic accessories that go into the holes of crocs sold her company to crocs for millions of dollars. It was such a simple idea, but also so creative and innovative. I was hooked on the idea of creating a product and starting my own company from that point forward.
IKEA Company was founded in 1943 by Ingvar Kamprad. The name of IKEA is originally formed from the first letter of the founder’s name and the names of the property and the village where he grew up. At the beginning, IKEA produced and sold simple things (such as pens, wallets, table, pictures frame, watches and jewellery) in the base of low price. The production of furniture in IKEA began during 1947 and in 1955 IKEA Company started to design its own furniture. Based on the company’s motto “Well designed and affordable quality furniture for everybody,” IKEA has been able to grow into fame company
The day has at long last arrived when you are prepared to move out of school and enter college and you have chosen to go in for one of the best business schools. Normally you would be keen on picking up admission to the best business schools out there. Why study for a MBA degree on the off chance that it is not from among the best business schools? Be that as it may, in light of your picked vocation way, say you need to significant in business accounting, which school would it be a good idea for you to pick? Is a school construct just in light of general positioning the best one for you? Presumably not. While one business school may be extremely solid in accounting, it may not give you enough information about marketing or economics. So it is exceptionally important to know the qualities and shortcomings of each MBA degree program.
Instituting management controls to insure replicability of operations once we decide to expand. This applies to product control and to financial
Ikea, the world’s largest home furniture retailing company, was founded by Ingvar Kamprad. He built his business empire through developing a distinct corporate culture. The Ikean
IKEA is a multinational organization that designs and sells ready-to-assemble furniture, appliances, and home accessories. Founded in Sweden during the early 1940s by Ingvar Kamprad under the Stitching INGKA Foundation, IKEA ranks #45 on Forbes 2015 list of the world’s most valuable brands and ranked 269th as America’s Best Employers. It pioneered the flat pack design furniture at reasonable prices and had fast become one of the world’s largest furniture retailer. As of May 2015, Forbes listed IKEA’s estimated brand value at 11.8 billon. Quite an accomplishment for a 17 year old founder whose entrepreneurial career began as an odds and ends salesman (Bartlet & Nanda, 1996, p. 1).
Ready to combined furniture, home accessories and kitchen devices are designed and sold by a multinational gathering which is IKEA. Their central is in the Netharlands. IKEA is known that the world’s biggest furniture company. It is founded by Ingvar Kamprad in 1943 in Sweden. When Ingvar Kamprad was founded the company, he was 17 years old. In November 2015, his name was listed in Forbes Magazine as the founder of the IKEA and among the ten richest people in the world with more than 40 billion dollars fortune. The company's name is an acronym that comprises of the initials of Ingvar Kamprad, Elmtaryd , and Agunnaryd. Ingvar Kamprad is founder of IKEA. He grew up at the farm which is Elmtaryd. Agunnaryd is his hometown where is in the Southern Western. There are two things what makes special IKEA, are eco-friendly and modernist. Their various types of appliances and furniture are always designed very modern and also their interior design work is frequently connected with an eco-friendly simplicity. Moreover, over the ten years period of worldwide extension, because of the company’s attention to cost control, operational details, and continuous product development, IKEA can lower its
Based in Denmark, IKEA International A/S is one of the world 's top retailers of furniture, home furnishings, and housewares. The company designs its own items, and sells them in the more than 140 IKEA stores that are spread throughout approximately 30 different countries worldwide. The company also peddles its merchandise through mail-order, distributing its thick catalogs once a year in the areas surrounding its store locations. IKEA is characterized by its efforts to offer high-quality items at low prices. To save money for itself and its customers, the company buys items in bulk, ships and stores items unassembled using flat packaging, and has customers assemble many items on their own at home. The company is owned by
Ikea is an international organization that was organized in Sweden in 1943. Its premise is retail furnishings and has become the world’s premier or leading furniture retailer with over 9,500. Today it is the world 's largest furniture retailer. The majority of their furniture are packaged and ready to be put together by their customers. This flexibility helps to lower cost and makes them a low-cost
IKEA is a manufacturer of home and business furnishings who offer interior furnishing products to consumers in several countries across the globe. Before IKEA plans on expanding and entering any new market, they are required to obtain a clear understanding of what consumer behaviour and requirements are in that particular market. There are basically two types of Markets which include Consumer Market and Business Market.
IKEA established itself as the largest furniture retailer in Sweden by the early 1970s by reinventing the wheel of furniture manufacturing at that time. Majority of furniture manufacturers in Sweden produced expensive products with designs that were basic or passed down generation to generation, additionally other manufacturers stores where located in downtown congested areas. IKEA’s strategies which consisted of low cost low priced furniture, brave intricate designs, self-assembly,