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Live your life. Love your home.,[object Object]
I (Ingvar ) Founders first name,[object Object],K (Kamprad) Founders last name,[object Object],E (Elmtaryd) Farm where he grew up,[object Object],A (Agunnaryd) Home village,[object Object]
The IKEA Business idea,[object Object],“The IKEA vision is to create a better everyday life for the many people.  We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.”,[object Object]
IKEA
IKEA History,[object Object],In 1943, IKEA was founded by Ingvar Kamprad,[object Object],Based in Sweden,[object Object],Bright blue and yellow,[object Object],In 1951, the first IKEA furniture catalog was published,[object Object],1955 IKEA begins designing its own furniture,[object Object],1985 The first IKEA store opens in the USA,[object Object],1993 IKEA reaches 114 stores ,[object Object],IKEA numbers 1,04,000 employees in 267 stores in 44 countries,[object Object]
Marketing Strategy,[object Object],   The IKEA vision is "To create a better everyday life for the many people.”,[object Object],	The Ikea's mission is “To offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them.”,[object Object],The IKEA market positioning statement is "Your partner in better living. We do our part, you do yours. Together we save money.",[object Object]
Product Line,[object Object],Bathroom,[object Object],Laundry ,[object Object],Bedroom ,[object Object],Lighting,[object Object],Children's IKEA,[object Object],Living room,[object Object],Cooking,[object Object],Secondary storage ,[object Object],Decoration,[object Object],Small storage,[object Object],Dining ,[object Object],Textiles,[object Object],Eating,[object Object],Workspace,[object Object],Hallway,[object Object],Youth room,[object Object],Kitchen,[object Object]
IKEA
Reason for choosing IKEA,[object Object],Product range,[object Object],Focuses on good design and function at a low price,[object Object],Offers home furnishing solutions for every room in the home ,[object Object],Something for the romantic at heart, the minimalist and everyone in between ,[object Object],Coordinated so that no matter which style you prefer our designers and product developers work hard to ensure that our products meet your day-to-day needs and eliminates the unnecessary,[object Object]
Low prices,[object Object],Low prices are the cornerstone of the IKEA vision and our business idea,[object Object],Low prices make well-designed, functional home furnishings available to everyone,[object Object],Constantly trying to do everything a little better, a little simpler, more efficiently and always cost-effectively,[object Object]
A better everyday life,[object Object],Taken the straightforward approach to the furniture business, by starting with developing furniture with the price tag in mind. This is the IKEA way, to maximize the use of raw materials in order to fulfill people's needs and preferences by offering quality products at an affordable price,[object Object]
Ikea & the Environment,[object Object],Use of wood-recyclable, biodegradable and renewable material ,[object Object],Select wood that is from verified, well-managed forests that have been certified ,[object Object],Free disposal of light bulbs,[object Object],Minimize costs,[object Object],Selecting the right environmental friendly products,[object Object], Use leftover material,[object Object],Employees are “environmental co-ordinators” working to increase environmental awareness ,[object Object]
PORTER’s 5 FORCE ANALYSIS,[object Object],Threat of Buyers growing bargaining power ,[object Object],There is a little power because of the existing low-price options,[object Object],IKEA ensure that their customers in all aspects will be satisfied for quality service they provide,[object Object],Focused their marketing approach on demands and needs of the buyer,[object Object],IKEA uses their corporate responsibility as a good public image to their customers,[object Object],IKEA Family -card as a membership,[object Object]
Threat of Suppliers growing bargaining power ,[object Object],IKEA has its thousands of suppliers that set standards in delivering the materials,[object Object],Because of the low-pricing, IKEA’s profit margin also affects the prices in raw materials than by prices in labour,[object Object],IKEA has a wide network of 1300 suppliers. They carefully select the manufacturer of its products. The company has own production factories and designers which makes it less dependent on others,[object Object],Bargaining power of supplier could be threat for the profit of the company,[object Object]
Threat of Substitute Products,[object Object],There is no specific product that can be a substitute for the furniture but IKEA at least, have to keep up with the latest trends, to avoid becoming out of style,[object Object],Problems faced due to distribution channels,[object Object]
Threat of Intense Segment Rivalry ,[object Object],The IKEA’s furniture competitors’ offers different styles and functionality,[object Object],Conrin targets a new low cost in terms of furniture line; Crate & Barrel offers a furniture in a box which is subject in higher prices,[object Object],Ethan Allen aimed at a more upscale market,[object Object],Wal-Mart is equipped in a big box furniture that is categorized under the general store must-have-items, but don’t have much of a style,[object Object],IKEA is the most successful in delivering the complete package for the customers that reflects on weak rivalries,[object Object],There will always be substitutes for furniture’s but IKEA competes with price and there isn't competitors in same price range,[object Object]
Threat of New Entrants ,[object Object],IKEA stores do not reach many small towns and this is an opportunity for the new competitors to move into small and midsize cities with smaller stores and less selection. But not easier in city because new entrants have to establish a vast supply chain and create a unique brand name,[object Object],The furniture market is already highly competitive - the risk of new entrants is not extremely high - huge capital needed to start the business,[object Object]
References,[object Object],http://www.ikea.com/ms/en_US/about_ikea/pdf/FF09_GB.pdf,[object Object],http://www.ikea.com/ms/en_US/about_ikea/facts_and_figures/index.html#,[object Object],http://en.wikipedia.org/wiki/IKEA,[object Object],www.ikea.com,[object Object]
Presented By :Fenella Andrade ,[object Object],Live your life, love your home.,[object Object]

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