IKEA is a Swedish multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories. It has been the world's largest furniture retailer since at least 2008.
2. IKEA
IKEA is a Swedish multinational group of
companies that designs and sells ready-to-assemble
furniture (such as beds, chairs and desks),
appliances and home accessories.
Founded in Sweden in 1943 by then-17-year-
old Ingvar Kamprad,now a billionaire.
Headquartered at Nelfit,Netherlands.
3. Company’s Vision
• “To create a better everyday life
for the many people”
• People have very thin wallets. We
should take care of them.
11. Efficiency
• IKEA runs its business more
efficiently and passes the cost
savings to its customers.
12. Cost Saving Measures
• The company employs a large number of
cost saving strategies such as
Buying in bulk
Use of solar panels
Stores located at a good distance
from city centers thereby reducing
land costs.
13. • DO IT YOURSELF
• Consumers themselves do the
shopping, shipping and assembly.
• This strategy makes storage and
transportation easier and
cheaper for the store.
14. Pros of IKEA’s strategy
• Using common names for its products
such as Hektor, Billy makes the
people remember its product easily.
15. • Do it yourself concept has proved to
save costs for both IKEA and the
consumer itself.
16. • Quirky marketing fun campaigns like
“Ambassador of Kul”and ads helped
to create a good brand image.
17. Cons of IKEA’s strategy
• People are lazy. They do not want to do
assembling and shipping themselves.
• Stores are located at a far location.
18. • Since so many products are displayed
in the store the consumer might get
confused and end up going to a
different store.
19. IKEA as of today
• As of December 2016, IKEA owns and
operates 392 stores in 48 countries.
• Total Revenue:29.93 billion euros.
• Total type of products sold:12000
• No. of employees:1,83,000
20. • Introduction to IKEA and its history.
• The company’s vision.
• What Ikea did very well.
• Pros of IKEA’s strategy.
• Cons of IKEA’s strategy.
• IKEA as of today.
21. Disclaimer
• Created by Vishal Gupta, IIT-BHU during a
marketing internship by Prof. Sameer Mathur,
IIM LUCKNOW.