IKEA: Business Analysis

The philosophy states “ Our vision is to create a better everyday life for the many people. Our business idea is to offer a wide range of well-designed, functional, home furnishing products at prices so low that as many people as possible can afford them.” IKEA needs to create products following this motto but have these products molded to the tastes and styles of the U.S. population. The prices must still be low but IKEA must force the message that even though the price is low that does not mean the quality of the product is poor. This message will be key for expansion in the U.S. to be a success. IKEA must maintain their shopping experience as that is a strong competitive advantage, and tweak their philosophy so it fits the American lifestyle. If they do this then they will have success in expansion.

No business is isolated from its environment. It is necessary for all businesses to consider the impact of environment on their business operations. PEST analysis is a useful mode to analyze the changing business environment, (PESTLE analysis, CIPD). It bifurcates the external environment in to various dimensions such pas Political, Economical, Social and Technological.

IKEA implements new product service design and development to offer their quality products at a cheaper price to suit people’s contemporary needs and circumstances. They focus on the price and quality, design and function, environment and health of their new product service design and development to minimize waste and

Influential work by Michael Porter suggested that the activities of a business could be grouped under two headings: (1) Primary Activities - those that are directly concerned with creating and delivering a product (e.g. component assembly); and (2) Support Activities, which whilst they are not directly involved in production, may increase effectiveness or efficiency (e.g. human resource management). It is rare for a business to undertake all primary and support activities. Value Chain Analysis is one way of identifying which activities are best undertaken by a business and which are best provided by others ("outsourced"). You can read more about Value Chain Analysis here.

By operating the business in Thailand (foreign market), IKEA adopt the strategy called “Think Global, Act Local” in the sense that IKEA maintains, applies and upholds their core values and cultures in their practices, while learning to adapt and understand the Thai culture and the Thai market in terms of needs, desires and wants of Thai people in general in order to survive and succeed.

Ikea is a multinational group of companies operating on a global scale in the furniture industry, offering a wide range of ready to assemble (Do It Yourself) furniture, appliances, and accessories worldwide. The company is well known and recognized for its modern designs, functionality of their products, quality services, and their eco-friendliness. Within the competitive market, Ikea aims at being better than its competitors in the market, and offers the best standards of services to its customers, as well as a wider range of products for low prices.

The concept of IKEA today with catalogue marketing combined with a showroom where customers could see and touch IKEA products started in the 1950s. This concept indeed attract consumer even though some consumer tends to take picture instead of experiencing and purchase. The company's three distinct features were function, quality, and low price. IKEA turned a capacity problem into a new way of

IKEA has strong global brand name recognition by its various types of modern designs of furniture and appliances. It is the largest furniture retailer in the world which operate 351 outlets in 46 countries(Reuters 2008). IKEA put a lots efforts to offer high quality and innovative products at low prices, so that the price of products are affordable for as many people as possible (IKEA Group Sustainability Report FY13 2014). IKEA is one of the major buyers of wood in the retail sector which consumed approximate 1% of the total commercial-product wood in the world (IKEA Group Sustainability Report FY13 2014). The performance of IKEA with regards to balancing society’s expectations will be examined and critiqued in this paper. This paper will

IKEA is known for its affordable and innovative product. IKEA was founded in 1943. IKEA home furnishing product also known for its light weight and the easy steps to assemble their products. IKEA name was form by the initial of the founder Ingvar Kamprad (IK). The places he grew up, Elmtaryd and Agunnaryd (EA). (Ikea.com/sg)

The Primary activities are important to acquire the essential inputs, convert them into a required product or service, sell and deliver them to the customer and provide support.

Lastly, Whirlpool 's involvement in globalization with a specific end goal to reveal insight for future methodologies or building globalization gets ready for little and medium undertakings planning to have worldwide strides.

The aim of this report is to analyze ‘IKEA’ as a company and produce a tactical plan. To make an evaluation on the international marketing activities of the IKEA through the use of various marketing techniques including PEST and SWOT analysis and will conduct critical analysis of the existing international marketing strategies and issues facing ‘IKEA’ and how they can enter into India and Indian market, and will discuss about possible recommendations and solutions that the company can should employ and how these should be applied to enter new market and run the business with a new strategy followed by the conclusion.

IKEA is a multinational group of companies, specialized in designs and sells home furniture (ready to assemble). They also sell accessories, bathroom & kitchen items and lately they have offered food market in their retail stores around the world. It was founded by Ingvar Kamprad who born in southern Sweden in 1926 and who was listed as one of the world 's richest people in 2013. The company is known by its modern (simplicity) design, cost control, operation details and continues product development. Today, IKEA owns and operates 225 stores in more than 30 countries. IKEA have a very nice catalogue, published in twenty languages. It is their main market tool for the retail giant.

The supply chain needs tight control and high levels of visibility to keep costs down and avoid obsolete inventory and/or stock outs.

IKEA was founded in Sweden by Ingvar Kamprad in 1943. IKEA has been established around the world in 26 different countries. Within these countries IKEA has a total of 303 stores. This business is effective in adapting to change through the use of the four key business functions; operations, finance, marketing, and human resources.