IKEA Case Study - 2983 Words

Report To: Carol George From: Fangyi Shao Subject: IKEA case study Date: 24. Apr. 2009 1. Introduction IKEA is the world’s largest furniture manufacturer who offers a wide range of well-designed, functional home furnishing products at a low price that many people can afford it. IKEA’s mission statement describes the purpose and distinctive advantages of the company clearly. (See appendices â…  ) It can also motivate management by saying ‘create a better everyday life for people’ because employees need work together to achieve this goal. 2.0 SWOT analysis (See appendicesâ… ¡) 2.1 Strength Ikea was ranked 35th among the best global brands around the world in 2008 with a brand value of $10,913 million. (Interbrand, online, 2009) IKEA†¦show more content†¦As one of IKEA’s fundamental innovation is the concept of self-service, RFID could give several benefits to IKEA because it can support self-service. Not only can customers get away from the queue by using RFID equipped cash desk, but also sharing accurate availability information through Electronic Price Labels. (idtechex, online, 2009) 3.4 Environmental Now, more and more people concern company’s corporate social responsibility on environment issues. IKEA needs to increasing energy efficiency and reducing their emissions of greenhouse gases to prove their concern on environment. Therefore, IKEA have to invest more on green issues and try to maintain low cost in the meanwhile, which is a big challenge. (IKEA, online, 2009) 3.5 Legal The minimum wage for 21p have risen to ï ¿ ¡5.73/h in March 2008, which brought IKEA with extra cost on labour. (bbs.news, 2009, online) IKEA also needs to show the company’s equality and diversity in employment. Due to product safety issues, IKEA must follow more policies to ensure the safety of product, which will be an additional financial burden of the company. 4.0 Porter’s five force analysis The furniture retailing industry in UK is very competitive, so the extent of competitive rivalry of the five forces is the most significant to IKEA. (See appendices â… £) Except IKEA, there are several big furniture retailers such as Galiform Plc, and DFSShow MoreRelatedIkea Case Study620 Words   |  3 PagesIKEA case study 1. Firm specific advantages IKEA has a variety of firm specific advantages since its business approach appeared to be very unique for the furniture industry. First, IKEA’s most important specific advantages were its good value for the money. IKEA used this advantage for its expansion plans all over the world. IKEA when they failed in the USA had to highlight this specific advantage to bail them out of the financial difficulty they had gotten into. Second, the most innovative decisionRead MoreCase Study of Ikea1445 Words   |  6 PagesCase Study of IKEA’s Global Sourcing Challenge In 1995, IKEA met a problem that its main supplier, Indian rugs, used the child labor to produce products, although they had signed an attachment of the contract to ban employing child labor. In addition, a German documentary maker was about to broadcast the problem of child labor on German television and also invited an employee from IKEA to have a live discussion in the TV program. Marianne Barner, the leader of IKEA, must find a great solutionRead MoreIkea Case Study1030 Words   |  5 PagesI. Factors Contributing to Ikeas Success Swedish company, Ikea, has experienced many triumphs throughout the business history. Founder Ingvar Kamprad created a successful business from a financial gift his father gave him. There are several factors that contribute to Ikea’s success. 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Also discussing about IKEA’s business idea and IKEA follows a quite traditional pattern of internationalizing and also drives the localization thoughts in different market place to stay competitive. Their vision â€Å"To create a better everyday life for the many† and their ultimate business idea â€Å" To offer a wide range of well designed, functional home furnishingRead MoreCase Study : Ikea Case Study1479 Words   |  6 PagesMike Borrelli April 31st, 2015 Global Strategic Planning Dr. Neiva Ethical Analysis Essay – IKEA Case Study IKEA, founded in 1943 by Swedish Ingvar Kamprad, is a global leader in the furniture industry. Starting as a mail-order company when Kamprad was 17 years old, the name IKEA comes from his initials along with his family farm (Elmtaryd) and his family’s parish (Agunnaryd). From this start-up that sold mostly small items like pens and binders, Kamprad added furniture to his mail-order catalogRead MoreIKEA Case Study1430 Words   |  6 PagesIKEA Case Study 1 IKEA - Case Study Panagiotis Charalampous Northcentral University IKEA Case Study 2 Synopsis of the situation IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is a privately held, international home products company that designs and sells ready-to-assemble furniture, appliances and home accessories. The company is now the world s largest furniture retailer. IKEA was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, named as an acronym comprising the initials of the