““Home is the most important Home is the most important

place in the world.”place in the world.”

Stream 130, Group 1325Violina Georgieva

Ivan IvanovKalina Cholakova

IKEAisation’s MapIKEAisation’s Map

• Founded in 1943 by 17-year-old Ingvar Kampard• IKEA is a combination of the founder’s initials and the

names of the farm(Elmtaryd) and village(Agunnaryd) where he grew up in Southern Sweeden.

• He realized that the customers would bypass added amenities to save money.

• IKEA’s History in few minutes -> HERE.

“The IKEA Concept”“The IKEA Concept”The Ikea Concept: Provide functional, well-designed furniture at prices so low that as many people as possible will be able to afford them.

IKEIKEAA

BACK TO IKEA’s HISTORY

• Well-known as high quality brand -> AFTER WATCHING Well-known as high quality brand -> AFTER WATCHING THIS YOU’ll HAVE NO DOUBTS!THIS YOU’ll HAVE NO DOUBTS!

• A strong global brand which attracts key consumer A strong global brand which attracts key consumer groups. It promises the same quality and range groups. It promises the same quality and range worldwideworldwide..

Strengths for IKEA come from a variety of different places. Some of the best Strengths for IKEA come from a variety of different places. Some of the best strengths include that it is a global brand; this means that since it is known strengths include that it is a global brand; this means that since it is known worldwide that many customers expect that it will have the same quality worldwide worldwide that many customers expect that it will have the same quality worldwide also. also.

• Do-it-yourself approach.Do-it-yourself approach.• Brand Image.Brand Image.• Low Cost Structure and strong focus on sustainability.Low Cost Structure and strong focus on sustainability.

The products can be easily assembled by customers, which help with the low The products can be easily assembled by customers, which help with the low prices they offer. IKEA also has long term partner-ships that will also allow them to prices they offer. IKEA also has long term partner-ships that will also allow them to get their merchandise quickly and for a lower cost.get their merchandise quickly and for a lower cost.

• A 'democratic design' reaching an ideal balance between A 'democratic design' reaching an ideal balance between function, quality, design and price.function, quality, design and price.

‘smarter’ use of raw materials with less waste‘smarter’ use of raw materials with less waste

IKEIKEAA

BACK TO STRENGTHS

• Same prices?Same prices?• Weak support for pregnant women(old people or Weak support for pregnant women(old people or

disadvantaged people)disadvantaged people)A good example is one of the episode of Ellen’s show where Ellen knowingly sent a A good example is one of the episode of Ellen’s show where Ellen knowingly sent a

girl to IKEA in a pregnancy belly to see who would help her with her shopping car. The girl to IKEA in a pregnancy belly to see who would help her with her shopping car. The hidden cameras caught it all. No one but another customer(woman) took attention to the hidden cameras caught it all. No one but another customer(woman) took attention to the screaming pregnant woman who needed help with her purchases. (YouTube’s search bar-screaming pregnant woman who needed help with her purchases. (YouTube’s search bar->Ellen show Ikea->”Cash for Kindness” is the name of the video)>Ellen show Ikea->”Cash for Kindness” is the name of the video)

• The size and scale of its global business - hard to control The size and scale of its global business - hard to control standards.standards.

One of the weaknesses for IKEA is that since they are global, that it may be One of the weaknesses for IKEA is that since they are global, that it may be difficult to maintain their product standards. This means that since they are a global difficult to maintain their product standards. This means that since they are a global corporation, it will be hard to keep all of the standards the same because there are so corporation, it will be hard to keep all of the standards the same because there are so many of them.many of them.

• Low-cost need to be balanced against quality.Low-cost need to be balanced against quality. Also a weakness is that the low cost vision hurts them because they want to have Also a weakness is that the low cost vision hurts them because they want to have good quality and a low price. This means they are stuck in the middle between trying to good quality and a low price. This means they are stuck in the middle between trying to achieve high quality, and also trying to give customers low prices, which is somewhere achieve high quality, and also trying to give customers low prices, which is somewhere you don’t want to be stuck.you don’t want to be stuck.

• Weak ONLINE support.Weak ONLINE support.

• We’ve always thought IKEA prices were standard We’ve always thought IKEA prices were standard round the world and wherever you go the price for round the world and wherever you go the price for a BILLY is a BILLY. Nope, if you take a look at a BILLY is a BILLY. Nope, if you take a look at Idealo’s price comparison Idealo’s price comparison research. From research. From the results, it seems the results, it seems we should be moving to we should be moving to Poland, the country with the lowest prices Poland, the country with the lowest prices for IKEAfor IKEA, with or without VAT., with or without VAT.

• Singaporeans and Australians, you’ve been paying Singaporeans and Australians, you’ve been paying the most for your IKEA fix. And my American the most for your IKEA fix. And my American friends, Portland’s the place to shop IKEA.friends, Portland’s the place to shop IKEA.

• The survey by Idealo.co.uk is an analysis of the The survey by Idealo.co.uk is an analysis of the prices worldwide of 40 popular IKEA products prices worldwide of 40 popular IKEA products prices in 33 countries with an IKEA presence. Here prices in 33 countries with an IKEA presence. Here are some of the highlights from the research:are some of the highlights from the research:

• Highlights for the US:Highlights for the US:

- IKEA Prices in Portland, OR (lowest U.S. sales tax – 0%) rank as the third - IKEA Prices in Portland, OR (lowest U.S. sales tax – 0%) rank as the third cheapest in the world.cheapest in the world.- IKEA Prices in Seattle, WA (highest U.S. sales tax – 9.5%) rank as the 17th - IKEA Prices in Seattle, WA (highest U.S. sales tax – 9.5%) rank as the 17th cheapest in the world. cheapest in the world. - IKEA Prices in Canada are 12% higher than in Portland, OR- IKEA Prices in Canada are 12% higher than in Portland, OR- IKEA Prices in Portland, OR rank as the most affordable in the world relative to - IKEA Prices in Portland, OR rank as the most affordable in the world relative to the U.S. economy.the U.S. economy.- IKEA Prices in Canada rank as the 10th most affordable in the world relative to - IKEA Prices in Canada rank as the 10th most affordable in the world relative to the Canadian economy.the Canadian economy.

• ONLINE connection with its customers 24/7.ONLINE connection with its customers 24/7.In times when we communicate and purchase things primarily by In times when we communicate and purchase things primarily by

Internet, a big brand like IKEA should be available with giving advices, Internet, a big brand like IKEA should be available with giving advices, information and etc in chat room or window somewhere in its website.information and etc in chat room or window somewhere in its website.

• More customizationMore customizationSuccessful establishment may require more customization options Successful establishment may require more customization options

on products such as colors, style and accents.on products such as colors, style and accents.

• Inadequate web presenceInadequate web presenceThis is may be the greatest challenge for IKEA. Most of the This is may be the greatest challenge for IKEA. Most of the

countries it operates in do not support e-commercecountries it operates in do not support e-commerce

• Overcome disparate governmental rules.Overcome disparate governmental rules.IKEA may face some India-specific challenges such as varying laws IKEA may face some India-specific challenges such as varying laws

in different states ruled by different political parties. This could make its in different states ruled by different political parties. This could make its operations, especially distribution and logistics, a bit challenging. IKEA operations, especially distribution and logistics, a bit challenging. IKEA already has had to wait a long time to get permission to open stores in already has had to wait a long time to get permission to open stores in India. The delay in policy-making at the state level could be even longer.India. The delay in policy-making at the state level could be even longer.

• Tax changesTax changes• Increasing costs. Rising cost of raw Increasing costs. Rising cost of raw

materials.materials.• Government regulationsGovernment regulations

IKEA's plan to set up restaurants as part of its big-box outlets. While some governments may allow IKEA to sell its own single-branded food and beverage items, it has made it clear that the company will not be permitted to sell eatables and beverages of any other brand, this person said. Globally, IKEA sells items such as Swedish meatballs, chicken items, salads, bakery products as well as products of other companies, including Pepsi, at its cafes.