IKEA OPERATIONS

CMBA8 OPERATIONSGROUP PRESENTATIONS

ABOUT IKEA• Established in 1943, Almhult, Sweden• Head Quarters: Delft, Netherlands• Presently serving 375 locations across the Globe• Vision : Create a better everyday life for many

people

ESSENCE OF OPERATION MANAGEMENT

• Efficiency• Effectiveness• Value

OPERATIONS AS A SYSTEM

INPUTS OUTPUTSCONVERSION SUBSYSTEM

CONTROL SUBSYSTEM

IKEA GARDEN FURNITURE• Follows the DIY Model• Can be easily assembled• Made using Medium Density

Fibreboard (MDF)

• APPLARO • FALSTER • ARHOLMA • KUNGSHOLMEN • LACKO

Business Strategy @ IKEA

Competitive

Advantage

Costumers included in

value chain , minimum

staff

Strength of Brand

Name

Economies of Scale:

Standardization

Distinctiveness in Design

UNIQUENESS OF IKEA

Low Price Function Design

Uniquely IKEA

IKEA’s VALUE CHAIN

CUSTOMER SUPPLIER

VALUE

VALUEVALUE

VALUE

PRICING STRATEGY OF IKEA

1 2 3

ECO FRIENDLY IKEA• Sustainability• Beyond The Trees• Help My Friend • IWAY or My Way

THANK YOU