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The E-Business Model Of IKEA

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Section 1: Introduction Background to IKEA IKEA is a multinational group founded by Ingvar Kamprad in 1943. A production oriented firm in the retail industry, IKEA designs and sells a range of functional and durable, self-assembled ‘flat-pack’ furniture, appliances and home décor at low prices (Rodionova, Z. 2017). IKEA originated in Sweden and has 370 stores in 47 countries, mainly in Europe, Asia, North America and Australia (IKEA 2014). Current E-Business Model IKEA receives over 780 million customer visits with revenues crossing €35 Billion per annum (Bender, J. 2016). IKEA’s 2013 e-commerce sales increased 30% to €1.4 billion as reported by their chief executive (Fortune 2016). They rank at number 41 on Forbes’ 2017 List of The World’s Most Valuable Brands (Forbes 2017).…show more content…
They connect, communicate, conduct business transactions and sell their products and services directly to customers for personal-use via the Internet, minimizing the use of intermediaries. Advertising is done via online catalogues, social media, email, website and a virtual and physical showroom to reach customers. IKEA establishes their brand presence using a transactional e-commerce website enabling customers to search for products, place orders and make payments via a simplified online checkout process. This has enforced their sales revenue model (Chaffey, D. 2015). IKEA included an Ask-Anna Avatar - a virtual assistant that answers questions in relation to products, price, size, delivery, and even opens related pages in browser windows, with information translated many languages (Chatbots, 2017). Section 2: IKEA SWOT
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