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IKEA

Presented by:Danny Reyes, Feifei Zhong ,Candy Zhong, Michelle Chen.

Presented by: Tea Shalamberidze Tornike Jangulashvili Nini lashkarashvili

IKEA

• Founded in 1943 (17 years-old Ingvar Kamprad.)• The company has reached its success through

its unique approach to the market.

• world’s largest furniture retailer

• operates more than 300 stores in 41 countries.

The company has successfully used “4+2 approach”.

Primary practices

• Strategy• Execution• Culture• Structure

Secondary practices

• Talent• Leadership• Innovation• Mergers and Partnerships

In 1951 IKEA discontinued all other products and focused:

look modern and not necessarily last centuries.

IKEA became ”purpose brand” and this huge company continues to give the right product to customers.

• on low-price,• medium-quality and

durability, • “Scandinavian style”

furniture.

Strategy

Execution

it is essential never to disappoint customers.

Are supplied all over the world.

Best choice of material for its cost and quality.

Customer Scenario.The whole new atmosphere for customers

Culture

Waste is considered as a ‘deadly sin’ in IKEA.

All the employees appreciate IKEA

Structure• easy to work. • promoted cooperation and the

exchange of information across the whole company.

• Put their best people closest to the action.

• Flexibility

• inner competition for employees and hired freelancers for design sector.

Innovation“We don’t want to pay to ship air”

The first Ready-to-assemble furniture store was born.

Talent

The competition between designers and hired freelancers promotes only the best choice and helps discover and preserve the ones needed for the job.

Furniture – isn’t a permanent attribute of your home.

Marketing campaign.

• sticky advertisement

• Customers could assemble furniture themselves.

• flat-packing reduce shipping, storage and distribution costs.

• Operations management• Smartly designed products at a good price.• Cost is a central focus.

“Low cost with meaning”.

“Not only does IKEA have monster stores and great prices, it has also created a unique niche. It’s the

quintessential power retailer in America.”

• 50 stores in operation in the US by 2013.• Seventh-largest furniture retailer in the US.

Thank you for attention.