IKEA Brand Management and Global Growth

Brand Management of by,
Nirvik Mitter
11BSPHH010542
Building a
Global Brand

by Nirvik Mitter
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Journey towards a global cult status…
IKEA by Nirvik Mitter

by Nirvik Mitter
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An Overview of what is in the IKEA store as you
turn the pages. . .
 Introduction / Origin & Genesis of the brand with associated brand stories and Timeline - 4
 The IKEA Concept, its Roots and some Facts - 5
 History and The Last Decade - 7
 Our Business !dea - 11
 Structure & Corporate Management of brand with principal executives and brand
managers - 12
 Brand portfolio with S.T.P. and Consumer Activations - 17
 IKEA and INTERMARKET SEGMENTATION - 28
 4Ps Strategy and core competency - 29
 Advertising Agencies associated with the brand and covering all strategic brand
campaigns - Timeline - 38
 Market Environment Including Sectoral & Industry Analysis - 47
 IKEA Value-Chain Analysis and PEST Analysis - 49
 Porter’s 6 Forces - 54
 S.W.O.T. Analysis - 55
 TOWS Metrics Analysis - 60
 Competitor analysis including market shares and brand rankings as per inter-brand /super-
brand etc. - 61
 Industry Analysis - 67
 Costing & Pricing analysis of brand portfolio - 69
 Consumer Behaviour and Brand ambassadors - 73
 Brand repositioning campaigns (if any) and the reasons for it - 75
 Complexity of the Market Environment and the Key Business Challenges for IKEA - 83
 Recommendations for the brand to achieve the TOM 1-2-3 status - 84
 A Rationalised Improvement Plan for IKEA - 86
 Alternative Options for IKEA - 89
 What is the future of this brand? - 93
 IKEA Trivia and Final Conclusion - 94
 References - 97
 And various IKEA Advertisements floating from page to page. . .

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Introduction / Origin & Genesis of the brand
with associated brand stories and Timeline
The Stitching INGKA Foundation is a Dutch foundation founded in 1982 by Ingvar Kamprad, the Swedish
billionaire, who is founder andchairman of IKEA and is one of the largest charitable foundations in the world.
The name "INGKA" comes from a contraction of his name; "Stitching" is the Dutch language word for
foundation. The stated purpose is - To promote and support innovation in the field of architectural and interior
design. The foundationowns theprivate Dutch companyINGKA Holding based inLeiden, which is the holding
company controlling 207 of the 235 outlets of IKEA. It is the second largest [non-profit organization] in the
world.
In 2011, the foundation reportedly gave 65 million euros, however, in that year plans were announced to
increase the contributions to about 100 million euros per year, with 40 million euros over three years going
to the Dadaab refugee camp in Kenya with the rest split between UN agencies such
as UNICEF, UNHCR and UNDP, and Save the Children ~ C.S.R.

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The name IKEA comes from the initials of Ingvar Kamprad, I and K, plus the first letters of Elmtaryd and
Agunnaryd, which are the names of the farm and village where he grew up.
The IKEA Concept
The IKEA Concept is founded on a low-price offer in home furnishings. It is based on 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. Rather than selling expensive home furnishings that only a few can buy, the IKEA
Concept makes it possible to serve the many by providing low-priced products that contribute to helping
more people live a better life at home.
The IKEA Concept guides the way IKEA products are designed, manufactured, transported, sold and
assembled. All of these factors contribute to transforming the IKEA Concept into a reality.
The roots of the IKEA Concept
The IKEA Concept began when Ingvar Kamprad, an entrepreneur from the Småland province in southern
Sweden, had an innovative idea. In Småland, although the soil is thin and poor, the people have a reputation
for working hard, living frugally and making the most out of limited resources. So when Ingvar started his
furniture business in the late 1940s, he applied the lessons he learned in Småland to the home furnishings
market.
Ingvar’s innovative idea was to offer home furnishing products of good function and design at prices much
lower than competitors by using simple cost-cutting solutions that did not affect the quality of products.
Ingvar used every opportunity to reduce costs, and he scraped and saved in every way possible - except on
ideas and quality. This is how the IKEA Concept began.
Today, the IKEA trademark represents the leading home furnishings brand in the world with more than 330
stores in 40 countries and close to 154,000 co-workers.

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History
How it all began:
The following history shows how over six decades IKEA went from the woods of southern Sweden to being
a major retail experience in 40 countries/territories around the world.
The IKEA story begins in 1926 when founder Ingvar Kamprad is born in Småland in southern Sweden. He is
raised on 'Elmtaryd', a farm near the small village of Agunnaryd. Even as a youngboyIngvar knows he wants
to develop a business.
1920’s
At the age of five Ingvar Kamprad starts selling matches to his nearby
neighbours and by the time he is seven, he starts selling further afield, using
his bicycle. He finds that he can buy matches in bulk cheaply in Stockholm and
re-sell them individually at a very low price but still make a good profit. From
matches he expands to selling flower seeds, greeting cards, Christmas tree
decorations, and later pencils and ball-point pens.
1940’s – 1950’s
The roots of a furniture dealer. Ingvar Kamprad is entrepreneurial in
developing IKEA into a furniture retailer. This period sees the exploration of
furniture design, self-assembly, advertising, the use of a catalogue and a
showroom to reach the many people.

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1960’s – 1970’s
The IKEA concept starts to take shape. New IKEA stores open and hero
products are developed such as POÄNG and BILLY bookcase. It is a time where
concept takes shape and is documented in Ingvar Kamprad's The Testament of
a Furniture Dealer.
1980’s
IKEA expands dramatically into new markets such as USA, Italy, France and the
UK. More IKEA classics arrive such as KLIPPAN, LACK and MOMENT. IKEA begins
to take the form of today's modern IKEA.
1990’s
IKEA grows even more. Children's IKEA is introduced and the focus is on home
furnishing solutions to meet the needs of families with children. The IKEA Group
is formed and responsibility for people and the environment is seen as a
prerequisite for doing good business.
2000’s
IKEA expands into even more markets such as Japan and Russia. Everything for
the bedroom and kitchen is explored and presented in co-ordinated furnishing
solutions. This period also sees the successes of several partnerships regarding
social and environmental projects.

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IKEA - The Last Decade
2000
 The first IKEA store opens in Moscow, Russia.
 The code of conduct called The IKEA Way on Purchasing Home Furnishing Products (IWAY) is
launched.
 Child rights project in India. The IKEA Group, in co-operation with UNICEF, initiates a broad
community program in northern India to address the root causes of child labour.
 IKEA customers can shop online. E-shopping is launched in Sweden and Denmark. Since then many
other markets have started offering online shopping at IKEA.
2001
 IKEA Rail begins. The IKEA Group trials running its own rail operations through IKEA Rail AB. The
train runs five round trips a week between Älmhult, in Sweden, and Duisburg, in Germany.
 Another innovative product. IKEA becomes one of the first manufacturers to produce furniture
with patterns produced directly on fibre-board and particleboard, in a factory in Poland. This
technique is called print-on-board.
 Anders Dahlvig speaks at a Greenpeace conference in London.
 A new head office for the IKEA Group. The IKEA Group moves its head office from Humlebaek in
Denmark to Leiden in the Netherlands.
2002
 IKEA recovery is launched. A new product-recovery concept is implemented in more than 100 IKEA
stores in Europe to ensure that returned products are, where possible, repaired instead of being
wasted.
 The IKEA and WWF Co-operation on Forest Projects.
2003 The fourth IKEA PS collection is launched.
2004
 IKEA arrives in Portugal. The first IKEA store in Lisbon.
 The IKEA Group publishes its first Social & Environmental Responsibility Report.
 The IKEA New Haven store in the US is the 200th IKEA Group store worldwide.

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2005
 Everything for the bedroom under one roof. A complete and co-ordinated collection of bedroom
furnishings is launched, including everything from mattresses to smart storage solutions and
textiles for all tastes.
 IKEA expands its focus to kitchen solutions. IKEA wants to make life in the kitchen easier, after all
it is one of the most-used rooms in the house. So IKEA looks into all the ways life in the kitchen can
be more fun. The result is a wide range of co-ordinated kitchens and dining furnishings that make
kitchen life easier.
 IKEA customers help children in need. Customer purchases of IKEA soft toys help raise funds for
UNICEF and Save the Children projects focusing on children and their welfare. This yearly campaign
has to date raised a total of 4.8 million euros.
 The fifth IKEA PS collection is launched. What if the wildest ideas become the
wisest solutions? The fifth IKEA PS collection is launched under the headline 'What
If...?' Twenty-eight designers develop a range in which innovation is the key word for
materials, design, function and techniques. The range includes everything from rugs
with hinges and pillows for your feet, to t-shirt-shaped cushions and rocking dining
chairs made from wooden plastic.
 IKEA and WWF co-operate on cotton cultivation.
 IKEA gives in-kind donations. Schools in Liberia and Burundi receive 9,000 tables each for a UNICEF
school project. After the tsunami, IKEA gives UNICEF an in-kind donation of 125,000 bed sheets,
100,000 quilts, 18,000 blankets, 145,000 toys and 300 mattresses to help victims in Indonesia, Sri
Lanka and India.
 IKEA Social Initiative. An organisation called IKEA Social Initiative is formed to handle global
community involvement through its partnerships with Save the Children and UNICEF.
2006
 IKEA arrives in Japan. After previous explorations of Japan with a joint venture in the 70s, the IKEA
Group opens its first fully-owned store in Tokyo.
 Our co-workers. The IKEA Group exceeds 100,000 co-workers and operates in 44 countries.
 Preventing illegal logging. The IKEA Group and WWF join forces to curb illegal logging in Russia and
reward legal forestry in Russia and China.
 IKEA Group donates quilts to Pakistan earthquake victims. The Pakistan earthquake in October
2005 leaves many people in a desperate situation. Over 335,000 IKEA quilts are donated to UNICEF
and their efforts to help improve the living conditions of the survivors.
 IKEA Food is launched. IKEA launches its own food label covering about30 percent
of the 150 products in its food range. The range focuses on high-quality food
products based on Swedish recipes and tradition, for a low price. The products have
an IKEA label andare sold in Swedish Food Markets in IKEAstores andarealso served
in IKEA restaurants.
2007

IKEA and WWF Co-operation on climate change. The IKEA Group and WWF start to co-operate on
projects aimed at reducing emissions of greenhouse gases generated by IKEA operations.
 The most international IKEA store. IKEA Haparanda opens the most international IKEA store yet. It
is uniquely placed on the border between Sweden and Finland and a catchment area that also
includes Russia and Norway.

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Our Business !dea
Our vision and business idea
At IKEA our vision is to create a better everyday life for the many people. Our business idea supports this
vision 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.
Our product range
The IKEA product range focuses on good design and function at a low price. It offers home furnishing
solutions for every room in the home. It has something for the romantic at heart, the minimalist and
everyone in between. It is co-ordinated 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.
Our low prices
Low prices are the cornerstone of the IKEA vision and our business idea. The basic thinking behind all IKEA
products is that low prices make well-designed, functional home furnishings available to everyone. We are
constantly trying to do everything a little better, a little simpler, more efficiently and always cost-effectively.
A better everyday life
We have taken the straightforward approach to the furniture business, bystarting with developing furniture
with the price tagin mind. This is the IKEAway, to maximize the useof raw materials inorder to fulfil people's
needs and preferences by offering quality products at an affordable price.

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Structure & Corporate Management of brand
with principal executives and brand managers

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IKEA
IKEA's complicated corporate structure is believed to be designed to protect the Kamprad family from
taxes and to avoid the possibility of a takeover of IKEA. Though Ingvar Kamprad, the founder of IKEA, is
often cited as one of the wealthiest men in the world, Kamprad does not technically own IKEA. IKEA is
privately held by a foundation, which in turn owns a group that controls the companies that run IKEA's
individual operations. Responsible for this tangled web of corporations, foundations and tax shelters is
IKANO, a Swedish group also owned by the Kamprad family that is primarily concerned with managing the
Kamprad family fortune, though interestingly, in 2008 it owned 25% of Habitat, another large European
based furniture store.
Stichting INGKA Foundation
IKEA is actually a privately held company owned by Stichting INGKA Foundation, a non-profit registered in
Leiden in the Netherlands which is controlled by the Kamprad family. The Dutch foundation, worth US$36
billion in 2006, according to The Economist, was created by Kamprad in 1982 for the stated purpose, "To
promote and support innovation in the field of architectural and interior design." Stichting INGKA
Foundation is the owner of INGKA Holding B.V.
Kamprad transferred 100% of his equity in IKEA to the foundation as an irrevocable gift in 1984. It is thought
that he did this to protect IKEA from family squabbling - IKEA will never be inherited in whole or part by his
three sons (Peter, Jonas and Mathias). Says Kamprad, "My family [will] never [have] the chance to sell or
destroy the company."
In 2007, there was an internet scam involving an email purportedly from the Stichting INGKA Foundation
granting funds to the recipient for their "personal, educational and business development." These emails
are an obvious attempt at 'phishing' or attempting to gain personal information from the recipient in order
to exploit money.
INGKA Holding B.V.
INGKA Holding B.V. is the parent company for all of the IKEA Group companies which is governed by a
Supervisory Board; Goran Grosskopf is the Chairman. Though ostensibly retired, Ingvar Kamprad serves as
Senior Advisor, while his son Mathias is onthe Supervisory Board. The IKEA Group companies are comprised
of IKEA Services B.V. and IKEA Services AB which have nine divisions in Sweden and the Netherlands which
support the work in all the IKEA Group companies.
IKEAGroup:
IKEA Group Management
IKEA Group Management is composed of: Anders Dahlvig - President and CEO of IKEA Group; Hans Gydell -
Group Vice President; Sören Hansen - Chief Financial Officer; Lars Gejrot - Head of Human Resources;
Torbjörn Lööf - Head of CS Region West; Peter Högsted - President of the UK division; Ian Duffy - President
of the Asia Pacific division; Pernille Spiers-Lopez - President of the North America division; Göran Stark is
responsible for Industry Investment and Development; Werner Weber - President of the Germany division
and Mikael Ohlsson.
IKEA Group Companies
The IKEA Group Companies are primarily concerned with carrying out the necessary functions to bring IKEA
products to market. The companies include Swedwood, IKEA of Sweden, Purchasing, Distribution, and
other functions such as Human Services, Internet Technology and Communications.

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Swedwood
Swedwood is the name for the industrial companies that manufacture IKEA products.
Swedwood was formed in response to the economic andpolitical upheaval that began
with the fall of the Berlin wall in 1989. In 1991, Swedwood was born, forever changing
how IKEA does business. Though Swedwood has branched out into North America
with the opening of a plant in Danville, VA and into other parts of the world, the
majority of the labor remains in the Eastern European nations. With over 7000
employees in FY2007, Poland makes up 52% of Swedwood's employee base. Slovakia
comes in second with 2130 employees (18%), and Russia is third with 1290 employees
(9%).
Swedwood is responsible for ensuring compliance with IWAY - the IKEA Way of
Purchasing Home Furniture Products. These are IKEA's internal policies governing
everything from environmental issues, worker safety, compliance with local laws and
regulations to social welfare and manufacturers who contractto do business with IKEA
must abide by these policies.
IKEA of Sweden
IKEA of Sweden, located in Älmhult, Sweden, employs the designers that design and develop the IKEA
range of products that are sold in IKEA stores. IKEA designers work on the original principle, "to create a
better everyday life for the many people."
Purchasing and Supplies
IKEA maintains 41 Trading Service Offices in 30 countries, and has over 1350 suppliers in over 50 countries.
Purchasing is responsible for ensuring reliable production, efficiency and minimal waste in manufacturing
processes.
Distribution
Distribution is responsible not only for moving products from point A to point B, but also for maximizing
efficiency, analyzing and managing supply chain issues and maintaining quality control throughout the
supply chain - from the manufacturer to the customer in the warehouse. Distribution is also responsible for
the Recovery department, which maintains the AS-IS room (also known as the Bargain Corner). There are
over 27 distribution centres and 11 customer distribution centres in 16 countries.
Inter IKEA Systems B.V.
Separate from the IKEA Group companies is Inter IKEA Systems B.V. which is registered in Delft, The
Netherlands and is the owner of the IKEA concept and trademark, and is the franchisor of the IKEA concept
worldwide. According to the website for Inter IKEA B.V., "the objective of Inter IKEA Systems B.V. is to
increase the availability of IKEA products through world-wide franchising of the IKEA Concept." Inter IKEA
Systems B.V. is not owned by INGKA Holding B.V., but is owned rather by Inter IKEA Holding S.A. which is
registered in Luxemburg and is part of Inter IKEA Holding which is registered in the Netherlands
Antilles. The ownership of these holding companies has not been disclosed, but it is widely assumed to be
owned in part or full by the Kamprad family.

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IKEA Stores
The majority of stores are franchised through Inter IKEA Systems B.V. by INGKA Holding Group, which
operates stores throughout Europe, North America and Australia. Other stores are franchised
independently. Regardless of the franchisee, all IKEA stores pay 3% of sales to Inter IKEA Systems B.V. on
an annual basis.
The IKEA franchise structure
Inter IKEA Systems B.V. is the owner of the IKEA Concept including the IKEA Trademarks worldwide and is
the worldwide IKEA franchisor. For the rights to use the IKEA systems and methods, its continuous
development and improvements, the IKEA Group and all other IKEA franchisees pay a franchise fee to Inter
IKEA Systems B.V. The relationship between the franchisor Inter IKEA Systems B.V. and its franchisees is a
business relationship between independent companies. Inter IKEA Systems B.V. is part of Inter IKEA Group.
Inter IKEA Group and IKEA Group are two separate groups of companies with different owners. Around the
globe there are companies owned outside the IKEA Group that are also operating under the IKEA
trademarks.

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The IKEA corporate structure is divided into two main parts: operations and franchising. Most of IKEA's
operations, including the management of the majority of its stores, the design and manufacture of its
furniture, and purchasing and supply functions are overseen by Ingka Holding, a private, for-profit Dutch
company. Of the IKEA stores in 36 countries, 235 are run by the INGKA Holding. The remaining 30 stores are
run by franchisees outside of the INGKA Holding.
INGKA Holding is not an independent company, but is wholly owned by the Stichting Ingka Foundation,
which Kamprad established in 1982 in the Netherlands as a tax-exempt, not-for-profit foundation. The Ingka
Foundation is controlled by a five-member executive committee that is chaired by Kamprad and includes his
wife and attorney.
While most IKEA stores operate under the direct purview of Ingka Holding and the Ingka Foundation, the
IKEA trademark and concept is owned by an entirely separate Dutch company, Inter IKEA Systems. Every
IKEA store, including those run by Ingka Holding, pays a franchise fee of 3% of the revenue to Inter IKEA
Systems. The ownership of Inter IKEA Systems is exceedingly complicated and, ultimately, uncertain. Inter
IKEA Systems is owned by Inter IKEA Holding, a company registered in Luxembourg. Inter IKEA Holding, in
turn, belongs to an identically named company in the Netherlands Antilles that is run by a trust company
based in Curaçao. The owners of this trust company are unknown (IKEA refuses to identify them) but are
assumed to be members of the Kamprad family.

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Brand portfolio with S.T.P.

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IKEAPortfolio

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The Full IKEA Portfolio in a new avatar
Apple App - http://goo.gl/v0S5T
IKEA App - http://goo.gl/7cMQj
IKEA Catalogue 2013 App –
http://goo.gl/MGDOZ
(* Use your QR code scanners from phone/iPad to access the Apple/Android Apps)

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Advertisements by

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IKEA and INTERMARKET SEGMENTATION
In a market there are different people having different demand but despite that many shares a common
need. In that case serving their independently will be a tedious job and it will consume more time and will
require more utilization of resources. That group of customer requires to be segmented together so that it’s
easy for the companies to target them and addressing their needs.
Intermarketsegmentation is process where customerof similar needs and buyingbehaviour are formed into
a group and segmented together so as to fulfil their need and serve them better.
These segmentation are not constrained by the geographical location and the customers with the same
needs can be segmented together irrespective of their geographical location.
Thus, Intermarket Segmentation is about forming segments of consumers who have similar needs and
buying behavior even though they are located in different countries just like IKEA which caters to the global
middle class.

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Core Competency by using the Product Strategy
A broad product line, including multi-function and different style, can provide strong product uniqueness
and help IKEA building up a good competitive advantage among the market.
Besides, durable household is another main feature of IKEA, for example, the sofa can reach the number of
pressure in hundreds thousands times and keeps the doors of cabinets to switch on and off in several
decades which they will have the demonstration to prove the testing method and result to customer.
IKEA provides the product in modular system, the design of each product is in high flexibility which can be
ride opened the DIY (Do It Yourself) concept to customer.
On the other hand, IKEA can let the customer bring all the furniture to home at the same time, customer can
save the delivery cost and transit time.
Also, IKEA can save the logistics and the warehouse cost which can achieve the win-win situation
significantly.

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Core Competency by using the Promotion Strategy
Build up a good brand perception to customer in both price and quality range.
IKEA is not only providing the various products to customer, but also offer a total solution for home
furnishing and a package of home decoration including design and construction.
On the other hand, IKEA changes its catalogues every year which is another important element to let them
promote their product in the fastest and easiest way to greatly increase their sales volume.

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Core Competency by using the Price Strategy
IKEA will base on the low-cost design philosophy and method in order to design the product in lowest cost
and let all range of people is affordable to buy.
And they are using the flat packaging and continuous innovation on various products in order to reduce the
cost. Flat packaging can save the warehouse area and reduce the defect rate. Moreover, it can greatly save
the transportation for all parties.

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Core Competency by using the Place Strategy
IKEA will choose a large area to present their products and they are always through the unique Scandinavian
style for presentation.
Moreover, the showroom will be according to each theme or design style to divide each room within the
shop.
Besides, IKEA provides both of the Catering Services and Children Play Facilities which are the added value
to the existing core business, it can be increased customer satisfaction and support the sales department.

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Ansoff's Product-Market Matrix
By using the Ansoff's Product-Market Matrix to the case of IKEA, we found out that IKEA can expand their
international design team in order to maintain the various products in Scandinavianstyle. On the other hand,
they can reserve the flexibility for local adaption for diversified tastes, preference and requirements across
the continental markets.
As a result of Ansoff's Product-Market Matrix, IKEA is able to create a strong competitive advantage over
the home decoration and furnishing market through offering unique and high differentiated products.
"Unique Scandinavian Style, Local Taste Meets"
Further Diversify - Business Integration strategy
Backward Integration - IKEA has to control the manufacturing partners by means of various strategic
collaboration including Merge and Acquisition or Strategic Alliances in order to primarily secure the
production coherence and efficient supply.
Forward Integration - Remove the intermediates at the forward side of supply chain bydirectly establishing
own-controlled retail outlets is the way to maintain a high level of margin resources through manipulation
of a major share of supply chain.
Market Development in future
IKEA continues to develop the new markets at international level in order to increase the quantity supplied.
Therefore, facilitation an adjustment of economic production scale towards an optimal point
IKEA can be also upgrade to the global brand that strengthens its market position of which any rivals are
difficult to imitate and compete.

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Advertising Agencies associated with the brand
and covering all strategic brand campaigns -
Timeline
All the Ad Agencies who are/were associated with IKEA:
 SMFB — a sister agency of Forsman & Bodenfors in Norway
 Ogilvy & Mather, New York
 Ogilvy Action, Dubai
 Leo Burnett
 DDB Berlin
 Mother London
 Deutsch, New York
 Ogilvy Frankfurt
 Jung Von Matt
 Ketchum
 SCPF
 Crispin Porter + Bogusky
 And a few more. . .

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In 1994, IKEA ran a commercial in the United States widely thought to be the first commercial featuring
a homosexual couple; it aired for several weeks before being pulled due to bomb threats directed at IKEA
stores.
Watch the YouTube Ad here – http://goo.gl/xAmSE
In 2002, the inaugural television component of the "Unböring" campaign, titled Lamp, went on to win
several awards, includinga Grand Clio,Golds atthe London InternationalAwards and the ANDYAwards, and
the Grand Prix at the Cannes Lions International Advertising Festival, the most prestigious awards ceremony
in the advertising community.

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IKEA launched a UK-wide "Home is the Most Important Place in the World" advertising campaign in
September 2007 using estate agent signs with the term "Not For Sale" written on them as part of the
wider campaign. After the campaign appeared in the Metro newspaper London the business news website
www.mad.co.uk remarked that the IKEA campaign had amazing similarities with the marketing activity of UK
home refurbishment company Onis living who had launched their own Not For Sale advertising campaign
two years prior and was awarded the Interbuild 2006 Construction Marketing Award for best campaign
under £25,000.
Adding some spice to theAd World of IKEA -A debate ensued between Fraser Patterson, Chief Executive of Onis
and Andrew McGuinness, partner at Beattie McGuinness Bungay (BMB), the advertising and PR agency awarded
the £12m IKEA account. The essence of the debate was that BMB claimed to be unaware of Onis's campaign as
Onis were not an advertising agency. Onis's argument was that their advertising could be seen in prominent
landmarks throughout London, having been already accredited, showing concern about the impact IKEA's
campaign would have on the originality of their own.
After some negotiations BMB and IKEA agreed to provide Onis with a feature page on the IKEA campaign
site linking through to Onis's .co.uk site, for a period of 1 year. Onis is possibly the only company to have ever
been advertised by IKEA in such a fashion. In 2008, Onis Homes limited was placed into voluntary liquidation and
the website www.onishome.com closed.
The Intellectual Property and trading rights of Onis Homes Limited were later purchased by new shareholders
with the strategy to grow the Onis brand throughout the U.K. as a one stop shop home
refurbishment franchise using the trading name Onis living.

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In 2008,IKEApaired up with the makers of popular video game The Sims 2to makea stuff pack called The
Sims 2IKEA Home Stuff, featuring manyIKEAproducts.It was released on24June 2008 in NorthAmerica and
26 June 2008 in Europe. It is thesecondstuff pack with a majorbrand, the firstbeing TheSims 2 H&MFashion
Stuff, which are both coincidentally companies of Swedish origin.
IKEA has taken over title sponsorship of Philadelphia's annual Thanksgiving Day parade in 2008,
replacing Boscov's, who filed for bankruptcy in August 2008.
In November 2008, a subway train decorated in IKEA style was introduced in Novosibirsk, Russia. Four cars
were turned into a mobile showroom of the Swedish design. The redesigned train, which features colourful
seats and fancy curtains, carried passengers until 6 June 2009.
Oyster cards (the ticket-free system for London Underground) were for a time given with wallets sponsored
by IKEA who also sponsor the tube map.

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In January 2009, just before the new store opened in Southampton, the MV Red Osprey of Red
Funnel was re-painted in an entirely yellow and blue livery to celebrate the opening of the new IKEA store in
Southampton. This is the first time a Red Funnel ferry has been re-painted outof itsownred and white colour
scheme. It stayed in these colours for 12 months as part of a deal between Red Funnel and IKEA to provide
home delivery services to the Isle of Wight. It was repainted with Red Funnel's red and white livery when the
deal ended in January 2010.
The Isle of Wight ferry Red Osprey in her
IKEA livery.
In March 2010, IKEA developed an event in four important Metro stations in Paris, in which furniture
collections are displayed in high-traffic spots, giving potential customers a chance to check out the brand's
products. The Metro walls were also filled with prints that showcase IKEA interiors.
In September 2010, IKEA launched an advertisement for UK & Ireland called "Happy Inside" which had 100
cats lying on IKEA furniture in the flagship IKEA store in Wembley, London.

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In April 2011, an advertising campaign for which aims to discover whether men or women are messier in
the home launched. Created by Mother, the campaign will begin with a TV advert shot in front of a live
audience, featuring four stand-up comedians, two men and two women, having the debate over which
gender is the messiest. The strategy behind the campaign is that domestic clutter leads to arguments,
leading to an unhappy home, which IKEA wants to prove can be avoided with better storage. Viewers will be
directed to a new Facebook page for the brand, where they are able to vote as to who they believe is the
messiest, and submit proof using videos and photos through an app created especially for the campaign.
Meanwhile, online display banners will allow off users the opportunity to vote, with online adverts
promoting Ikea products also demonstrating the problems people have shared, and offering solutions.
Anna Crona, marketing director at IKEA UK and Ireland, explained: "We are committed to understanding how
our customers live life at home so we can provide solutions to make life happier. Everybody has storage needs
in the home and by encouraging debate and providing solutionswe will show that IKEA is relevant to everybody,
no matter what your home is likeor how much money you have." Press adverts will also support the campaign,
as will a handbook entitled "Peace, Love and Storage", which will be available through the Facebook site.
In August 2011, IKEA launched a first advertisement for Thailand in Sukhumvit, Bangkok Metro station.
The advertisement has shown a box and a manual of POANG product, and shown a slogan of company "A
better everyday life at home".

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During the launch of the new catalogue in August 2012, IKEA toured with giant IKEA catalogue through
the Netherlands. This giant catalogue was some kind of tent, inside were some new articles presented,
coffee and snacks were served and you could get a catalogue with yourself projected on the cover. The IKEA
catalogue was runby co-workers from the nearest store. The catalogue was in thecity centres of Rotterdam,
Groningen, Amersfoort and Eindhoven.

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Market Environment Including Sectoral &
Industry Analysis
Market Analysis:
Market analysis is consisted by few important sub points which are:
 Market size (current and future),
 Market growth rate,
 The profitability of a market,
 Industry cost structure,
 Distribution channels,
 Market trends,
 Key success factors.
Each one of them has a specific meaning and states specific things which can be
used in order to improve or to choose between two different markets.
The goal of this market analysis is to determine the attractiveness of a market
and to understand or even predict the opportunities and threats which are
related to the strengths and weakness of the company.

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 Market Size. The size of the market can be based on the present sales or
on potential ones. The nominal GDP of United Arabic Emirates is
estimated on $228.578 billion and that shows just high is the life standard
in this county. The United Arabic Emirates (UAE) is rapidly, highly
developed economy based on different socioeconomic indicators such as
GDP per capita, energy consumption. Although the UAE is becoming less
dependent on their natural resources as a main revenue source still an
important role in this economy is played by the petroleum and natural gas
exports. Recently, Dubai’s Emirates started to look for another source of
revenue and they looked into sectors like tourism. The region is trying to
have pulled the eye of the people, especially to the rich ones. The rapidly
developing economy of Dubai and UAE is making almost each big brand,
firm, company to make offices in Dubai and even headquarters.
 The Market Growth rate simply means to extrapolate historical into the
future. The GPD per capita in UAE is one of the highest in the world and if
you take this into consideration that shows only what enormous buy
power this country has. Of course like every other country and economy,
the UAE was hit by the economic crisis and in 2009 a decrease of 4.0% in
the GDP growth was reported. An important inflection for this point is
that sometimes the growth can be predicted by studying and analyzing if
in the past were invented similar products like the one that IKEA wants to
implement and spread within the country and be as much profitable as
possible. Also the life cycle of the product must be taken into, because of
this rapidly ever changing world a product could be on the top today, but
the day after to be forgotten and new product can arise.
 Market Profitability. And here while different firms can have different
levels of profitability, to understand how much money you can make in a
certain market the needed thing here is, the average profit potential of a
market and that can be used as a guideline to understand the potential of
this certain area. To do so here are used the 5 forces that Michael Porter
created. Known as the Porter’s five forces they identify the influence on
the market profitability and they are Buyer and Supplier power, Barriers
to entry, Threat of substitute products and Rivalry among firms in the
industry. Universally accepted fact all around the world is that a woman
must take care of the house and as we are familiar with IKEA policy, they
offer flat pack furniture, home accessories and kitchen items in their retail
stores all over the world.

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IKEA Value-Chain Analysis
“Each step in the manufacture of a product or the delivery of a service can be thought of
as a link in a chain that adds value to the product or service.
This concept of a how business fulfils its mission and objectives is known as the value
chain”
The concept of Value-Chain analysis is introduced by Michael Porter (1985), who divides
activities of the firm into two categories: primary activities and support activities.
Primary activities are necessary elements for producing the products and offering
services, and support activities assist businesses to become successful in the
marketplace.

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The following tables represent an analysis of IKEA operations on the basis of Value-Chain
analytical framework:
Primary Activities

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Support Activities

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PEST Analysis - IKEA
PEST is an acronym for Political, Economic, Social and Technological factors that affect businesses.
“Sometimes PEST is extended to seven factors by adding Ecological, Legislative, and Industry Analysis; it
is then known as PESTELI. However, these additional factors can be covered in the previous factors”

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Porter’s 6 Forces
Power of Buyers: There is a little power because of the exiting low-price options. Furniture
and other small items have an alternative and consumers have limited alternative choices that make the
IKEA unique among its competitors. In addition the low price strategy is another way of the company to
response in buyer‘s need.
Power of Suppliers: IKEA has its thousands of suppliers that set standards in delivering the
material. Once in a while, for someproducts, the IKEAbids for thecontracts with multiple companies to craft
the same products. Most of the supplier work in IKEA and compete with other suppliers, and they have a
little bargaining power. Because of the low-pricing, IKEA‘s profit margin also affects the price in raw material
than by prices in labour.
Rivalry: The IKEA‘s furniture competitors‘ offers different styles and functionality corning targets a
new low cost in terms of furniture line; Cratel & Barrel offers a furniture in box which is subject in higher
prices Ethan Allen aimed at a more upscale market; 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. IKEA is the most
successful in delivering the complete package for the customers that reflects on weak rivalries.
Threat of new
Entrants
Threat of
Substitute
product & services
Bargaining
power of
Suppliers
Bargaining
Power of
Buyers
Rivalry
among
existing firms
Power of
Relative
stakeholder

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Substitutes: There is no specific product that can be a substitute for furniture but IKEA at least,
have to keep up with the latest trends, to avoid becoming out of style. Another advantage is that through
their cutting and leading technology, IKEA could copy any new style fairly and move each the product into
its stores.
New Entrants: Another furniture company is rolling on low-cost strategy and should compete
with the IKEA as the excellent company in delivering the furniture and house wares. 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 chin and create a unique brand name.
Relative power of stake holder: IKEA has being opened with all its stakeholders.
This involves building trust through good communication with consumers, co-workers, key opinion formers
and the press. Being sustainable is a central part of IKEA's image.
IKEA S.W.O.T. Analysis

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Strengths:
 Leading retailer of home furniture & furnishings
 Strong global brand image
 IKEA‘s vision (create a better everyday life for the many)
 Global presence of more than 35 countries
 IKEA has its own industrial group
 Self -assembled furniture
 Not a traditional furniture
 20-40 % Low cost furniture than competitors and no extra Cost included
 Effective Value chain & procurement
 Less time services and carried away material
 Product differentiation (product range)
 Single global strategy
 No wastage of material
 Unique business model
 IKEA work environmentally friendliness

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Weaknesses:
 Stuck in the middle
 D.I.Y. nature
 Logistic cost
 Detracting to attain organization plans.
 The size and scale of its global business
 No enough distribution channels
 The problem of product recalls
 Difficulties to understand different countries
attitudes and tastes
 IKEAs little transparency.
 Store layout – a hassle for those who want a
particular item only.
 Swedish designs may not appeal to all
American markets.

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Opportunities:
 Opportunity to enter in broad market such as Asian market
 To sustain in long run
 Online orders or E-marketing
 Increasing average growth up to 11%
 Opportunity to create economic designs with existing workforce and designers
 To involve every contributor in value chain in optimal manner
 Focus on differentiated products for the Asian market
 Continuing demand for low prices
 Growing demand for products which do not harm the environment
 for companies to use less water when making products and reduce their carbon footprint
 Untapped markets (Midwest, Corporate…etc.)
 Educate consumers on IKEA thru advertisements)
 Increase online sales and Internet presence.
 Use the popularity among young people to expand to college markets.

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Threats:
 To sustain in the long run
 To follow the strategies more than one for long run
 Changing social trends
 Market Forces - more competitors entering the low price household
and furnishings markets. IKEA needs to reinforce its unique qualities
to compete with these.
 Environmental issues across the global
 Traffic and poor transportation system
 Economic crisis - the recession slows down consumer spending and
disposable income reduces
 Many competitors - Wal-Mart, home depot, pier.
 Social trends – such as the slowdown in first time buyers entering the
housing market. This is a core market segment for IKEA products.

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TOWS Metrics Analysis

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Competitor analysis including market shares and
brand rankings as per inter-brand /super-brand
etc.

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Industry Analysis
Western furniture history
 The classical world---practicability & durability
Ancient Greece, Roman, Turkey, Egypt
 The dark ages--heavy, oak, ornamented with carved design
 The Baroque and Rococo---the nineteenth century
The transitional furniture
Asian furniture history
 China----carved wood and bamboo, heavy lacquers
 Japan ----minimalist style, wood, high-quality craftsmanship
Trends:
 Color--bright color
 Form --follow the nature
 Materials--textured surfaces and transparent plastic
 RTA--ready-to-assemble furniture
Global issues
 Global remaining forest
 IKEA’s environment responsibility
“IKEA does not accept timber, veneer, plywood or layer-glued wood from intact natural forests or from
forests with a clearly defined high conservation value.”

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Costing & Pricing analysis of brand portfolio

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Consumer Behaviour and Brand ambassadors
How IKEA seduces us:
 A fashionista runs the place
 They know what we want before we do
 They keep it light and breezy
 They trap us in that damn maze
Fabolous, Sean Kingston, Trey Songz, Olivia Palermo, Joe Jonas, Alice Braga, and many
many more . . . are IKEA’s brand ambassadors.

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IKEA Creates First Interactive Catalogue & Tracks Consumer Behaviour
IKEA has just unveiled its first interactive catalogue--it's about time, right!? This interactive site will include
video content instead of just still imagery as well as the ability to interact with social media, including
Pinterest and Facebook.
While IKEA is spending a fairly large portion of their advertising budget on this one tactic, it will provide
them with an immense amount of consumer knowledge and behaviour tracking. They'll be “able to
monitor how people respond, the areas where they don’t respond, and look at how they’re using it, how
many are using it and how it gets shared.” Very valuable learnings for any marketer!

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Brand repositioning campaigns (if any) and the
reasons for it

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Complexity of the Market Environment and the
Key Business Challenges for IKEA
IKEA has an effective business strategy that has been effectively implemented and this has ensured global
leadership position for the company. This strategyconsistsof finding an effective combination of quality and
prices for the products and thus appealing to a wide range of customers who mainly represent middle class
in society.
However, the current position of IKEA should not be taken for granted and there are specific set of
challenges that need to be addressed by the company in an effective manner in order to remain competitive
in the future and achieve long-term growth.
The key business challenges faced by IKEA can be summarised into the following four points:
1. Keeping costs down. One of the major challenges faced by IKEA relates to the necessity of keeping costs down on
the face of increasing prices of raw materials. Raw materials used by IKEA contractors for the majority products of
the company involve wood and metal. The prices for both of these materials are increasing in global level and this
fact causes difficulties for the company in terms of achieving its objective of lowering the prices by 2 to 3% annually.
2. Addressing cross-cultural differences in international markets. IKEA operates in more than 38 countries on the basis
of both; company operated stores, as well as, franchising. The population in each of these counties have their
unique culture and cultural differences find their reflection on various aspects of life including perceptions of value
propositions offered by companies, the level reception and interpretation of various marketing materials and
consumer preferences. This situation presents challenges for IKEA in terms of adapting various aspects of the
business to local markets taking into account the cultural differences associated with each individual market.
3. Dealing with competition from China and India. Producers from new emerging superpowers, China and India
present substantial threat to leading multinational businesses from US and Europe due to their significant
competitive advantages in the forms of cheaper access to resources. Therefore, there is a risk for IKEA to lose the
attractiveness of its valuepromise due to cheaper discounted furniture being offered to the marketplaceby Chinese
and Indian companies.
4. Achieving flexibility for the business. IKEA has been growing in size for several decades as a result of aggressive
international market expansion strategy. While the massive size of the company offers a number of substantial
advantages such as economies of scale it has serious limitations as well. Namely, IKEAs massive size may negatively
affect the level of flexibility of the company which is essential in current constantly changing marketplace. In other
words, IKEA is faced with a challenge of remaining flexible and adaptable to rapidly changing marketplace, amid its
massive size that slows down the speed of implementation of the proposed changes.

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Recommendations for the brand to achieve the
TOM 1-2-3 status
 Continued Expansion with Further Research
 Ingvar Kamprad as Company Figure, not decision maker
 Active Approach to Community Relations
 Staffing Schedules
 Catalogue Stores
 In order to gain high market share in different country, IKEA need to emphasize a ―
pull‖ marketing strategy by launching a campaign thatpromotes furniture as a fashion
statement. By pull marketing strategy people will be aware of good quality furniture.
 Asia is considered as emerging market and has largest consumers‘ base with more
than three billion populations, IKEA need to build many stores in these countries to
facilitate easy access to stores without time consuming.
 For IKEA to have competitive advantage, they should design a web site which can help
the customers to design their own furniture (customization), with the dimensions and
the colors they need. This will give them large market segmentation that the
customers would like to design their furniture.
 IKEA is known by their stylish and affordable furniture retail business. So to sustain in this
position IKEA need to upgrade its products continually based on costumers test and
preferences.
Long-term Recommendations:
Design a furniture layout simulation in CD-ROM for each catalogue (need technology)
--three-dimensional (3D)
--pre-design at home
--save shopping time

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More Recommendations for IKEA
The current leadership and management practices in IKEA are promoted by the
corporate culture that has been laid by its founder Ingvar Kamprad. There have been
some modifications in corporate culture and management style since Ingvar Kamprad
retired from the leadership position in 1986, nevertheless the impacts of his autocratic
leadership style have lasted until present days and effects current leadership and
management practices in IKEA. This statement can be justified by the fact that Ingvar
Kamprad still serves as a senior adviser to IKEA and wields great influence to the
company managers in various levels.
While autocratic management style can still be highly effective in present days, for
instance, in the case of Steve Jobs of Apple Corporation, generally, this style of
management is widely criticised by business researchers and practitioners for a number
of serious shortcomings. Specifically, the increased level of criticism associated with
autocratic management style relates to low employee motivation and morale, high level
of dependence on the competency of one or few people, and the lack of innovation.
IKEA has a great potential in present day to increase its effectiveness and obtain
competitive advantages in various levels thorough changing the management style
practiced in the company from autocratic to democratic.
“As the name implies, a democratic management style gives employees a much greater
say in decision making. Rather than making unilateral decisions and expecting
employees to carry them out, the democratic entrepreneur encourages employees to get
involved in the process”.
Embracing the democratic management style will offer IKEA numerous advantages such
as highly motivated workforce, valuable insights to existing issues and innovative ideas
for improving various business processes.

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A Rationalised Improvement Plan for IKEA
As it has been shown above, the rationalised improvement plan for IKEA directly relates
to the change of leadership and management style from autocratic to democratic. Such
a dramatic and fundamental change within IKEA needs to be implemented in an
effective manner in order to eliminate the chances of negative implications of the change
on various business processes.
Burke-Litwin model of organisational change can be employed in order to ensure
successful implementation of proposed changes in IKEA. “According to the Burke-Litwin
model of change, planned change flows from top (external environment) to bottom
(performance). The arrows that point downwards are given more casual weight. Thus,
with respect to organisational change, external environment has the greatest impact.
Inside the organisation, the transformational factors have the greatest impact”

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Ingols et al (2011) divide the variables within Burke-Litwin model of change into two
categories: transformational factors and transactional factors. Accordingly, environment,
leadership, mission and strategy and culture are considered to be transformational
factors, whereas, all the remaining variables are transactional factors.
“Transformational factors “entail significantly new behaviour by organisational members
and major alterations to other variables in the model. However, when fundamental
reorientation and re-creation are a necessity, they may represent the only viable
approach to organisational rejuvenation and long-term success”.
According to the model the proposed changes in IKEA should be promoted from the top
to the bottom. Specifically, strategic level management in general and IKEA Group
President and CEO Mr. Mikael Ohlsson in particular should promote the new democratic
style of management to be integrated into the corporate culture. This can be achieved
through appointing a change agent, ideally Mr. Ohlsson to lead by example and to
demonstrate the advantages of democratic management style in a practical manner.
Moreover, in order to increase the level of effectiveness of change management the
proposed democratic style management should be integrated into mission statement
and strategic plans of IKEA, the company’s organisational structure, as well as, its
systems and policies.
In this way the work climate within IKEA can be improved in a desired manner and
individual needs and values can be altered to appreciate and embrace the principles of
democratic management system.

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Current Situation within IKEA Affecting the
Implementation of Rationalised Improvement Plan
The plan proposed above that mainly involves changing autocratic management style to
democratic management offers the potential of dramatically improving IKEA’s prospects.
However, an in-depth analysis of the current situation within IKEA reveals several areas
of weaknesses associated with the proposed plan.
Firstly, Mr. Ingvar Kamprad still has a major influence on company employees in his
capacity of the founder of IKEA in his position of senior advisor to the CEO. This fact
might defer the proposed changes from taking place because Ingvar Kamprad might see
these changes unnecessary and even violating the basic principles of leadership that
has ensured the achievement of the current status for IKEA.
Secondly, the current team of senior level management of IKEA – Mr. Mikael Ohlsson
President and CEO; Mr. Soren Hansen, Vice President and Chief Financial Officer; Mr.
Goran Grosskopf, Chairman of the INGKA are performing well in their current positions
according to the financial performances of IKEA. As such, the proposed plan of
changing the management style in IKEA might be perceived as unnecessary by them as
well. In other words, the current team of senior level management in IKEA may fail to
appreciate the advantages of democratic management style, being deceived by their
current high level of performance and taking current leadership position of the company
for granted.

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Alternative Options for IKEA
Alternative approaches need to be developed for IKEA that would address the above
mentioned weaknesses of the proposed plan. The most appropriate alternative
approaches available for IKEA can be summarised into the following points:
1. Promoting and implementing inspirational management style. Because it has been revealed
that the implantation of democratic management style in IKEA might prove to be highly
challenging due to above specified reasons, the most suitable ‘second best’ alternative would
be the promotion and implementation of inspirational management style. The advantages of
inspirational management style include high level of performance from the workforce through
motivating them with an effective combination of tangible and intangible motivational tools.
The implementation of inspirational management style is going to face less opposition within
various management ranks in IKEA compared to the implementation of democratic
management style because the latter style is associated with less changes and disadvantages
compared to the former.
2. Devising a plan for implementing democratic management style over a longer period of time.
IKEA founder Ingvar Kamprad and the strategic level management team might be more
receptive to the idea of implementing democratic management style over longer period of time
through devising relevant programs and initiatives because implementing the proposed
changes in such a manner would not involve dramatic changes in a short period of time, and
thus may not contradict to established principles and norms within the company.

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Recommendations for IKEA to Address Major
Challenges
Firstly, focusing on using recycled materials. The awareness of population who are the
current and potential customers of IKEA about various environmental issues is
increasing due to the activities of various non-government organisations and wide
coverage of these issues by the media. One of the most discussed environmental issues
in a global scale relates to deforestation in various regions and its negative impacts for
the future of the nature and humanity.
As a result, the demand for the various types of products such as paper and plastic bags
made of recycled materials has dramatically increased. This change in consumer
preferences presents good opportunity to IKEA to promote research and development
initiatives among its suppliers with the aims of introducing furniture and other types of
products in the marketplace that are made of recycled wood and other recycled
materials.
Having followed this advantage IKEA would possess the first mover advantages in the
market of recycled furniture and in this was the company would be able to further
strengthen its position in the marketplace.
Secondly, engaging in product differentiation. There is an opportunity for IKEA to
dramatically increase its revenues through engaging in product differentiation. IKEA is
recommended to follow the strategies of Argos and Tesco where the offerings of
products and services range from international calling cards to various types of
insurances and loans and accordingly they have greater potential for increased amount
of revenues.
IKEA already has a firmly established effective strategy and infrastructure and these can
be used in order to increase the product ranges of the company in an effective manner.
Thirdly, engaging in market expansion in an international level. IKEA is also
recommended to increase its revenues through engagement in market expansion
strategy in an international level. Specifically, the company is recommended to enhance
the level of its presence in Eastern European and Central Asian region. Markets in
countries where IKEA is currently operating has become saturated, and from this
perspective international market expansion would make a good business sense for
IKEA.

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Factors that Might Influence Implementation of
Recommendations
Specific factors may affect the implementation of recommendations formulated above.
Some of the most important factors of this nature are described below.
1. Possible global financial crisis. In the case of another global financial crisis some of the above
formulated recommendations that relate to product differentiation and international market
expansion would have to be deferred for the later period of time. This is because financial
crises are usually associated with decline in sales for most types of products and services and
uncertainty in the marketplace and IKEA management would consider it inappropriate to invest
in product differentiation and market expansion in such an environment.
2. Regulations in Eastern European and Central Asian countries. Rules and regulations might be
introduced by the some governments of Eastern European or Central Asian countries that can
make it highly challenging or even impossible for IKEA to launch operations in within those
countries. Such activities by the governments can be initiated for the reasons of protecting
local businesses.

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What is the future of this brand?

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94
IKEA Trivia

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95
IKEA Advertisements
IKEA Ad
Watch at – http://goo.gl/HnhRZ
IKEA smallest store
Watch at – http://goo.gl/SJ4vQ
IKEA catalogue 2013
Watch at – http://goo.gl/o1anp

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Final Conclusion
IKEA is a well-known global brand with hundreds of stores across the
world. In order to improve performance, it must assess its external
and competitive environment. This will reveal the key opportunities it
can take advantage of and the threats it must deal with. IKEA
responds to both internal and external issues in a proactive and
dynamic manner by using its strengths and reducing its weaknesses.
Through this, IKEA is able to generate the strong growth it needs to
retain a strong identity in the market.
IKEA's passion combines design, low prices, economical use of
resources, and responsibility for people and the environment. The
company's products, processes and systems all demonstrate its
environmental stance. For example, clever use of packaging and
design means more items can fit into a crate, which means fewer
delivery journeys. This in turn reduces IKEA‘s carbon footprint.

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References
• Competitive Strategy: Techniques for Analyzing Industries and Competitors Michael E. Porter
• Competitive Advantage: Creating and Sustaining Superior Performance Michael E. Porter
• Thompson, AA Strickland AJ & Gamble J 2005. Crafting andExecuting Strategy (Fourteenth Edition),
McGraw-Hill, New York, pp. C2-C32.
• Anonymous ¡¥IKEA strategy targets big/bigger/best stores¡¦, DSN Retailing Today; Nov 8, 2004; 43,
21; ABI/INFORM Global, p. 28
• K. Klingand I. Goteman, 2003 ¡¥IKEA CEO Anders Dahlvig on international growthand IKEA¡¦s unique
corporate culture and brand identity¡¦, Academy of Management Executive, Feb 2003, Vol. 17,
• Needles, BE, Powers, M & Crosson, SV, 2007, Principles of Accounting, Cengage Learning
• Porter, ME, 1985, Competitive Advantage: Creating and Sustaining Superior Performance, Free
Press
• Profile: IKEA, 2011, Innovation Leaders, Available at: http://fp05-
527.web.dircon.net/ikea_company_profile.htmL Accessed, July 1, 2011
• Berger, A, 2011, Operations Management: IKEA, Grin Verla
• Inter IKEA Systems B.V., 2011, Available at: http://franchisor.ikea.com, Accessed July 1, 2011
• Janakiraman, B & Gopal, RK, 2007, Total Quality Management: Texts and Cases, John Wiley & Sons
• Kishel, GF & Kishel, PG, 2005, How to Start, Run, and Stay in Business: The Nuts-and-Bolts Guide to
Turning Your Business Dream Into a Reality, 4th
edition, John Wiley & Sons
• Martins, T, 2010, Ingvar Kamprad Quotes: Business Leadership Advice from IKEA’s Founder,
Available at: http://www.strategicbusinessteam.com/famous-small-business-quotes/famous-
business-and-leadership-quotes-from-ingvar-kamprad-founder-of-ikea/ Accessed July 10, 2011
• Mullins, LJ, 2005, Management and Organisational Behaviour, Prentice Hall
• Pride, WM & Ferrell, OC, 2008, Foundations of Marketing, Cengage Learning
• Profile: IKEA, 2011, Innovation Leaders, Available at: http://fp05-
527.web.dircon.net/ikea_company_profile.htmL Accessed, July 1, 2011
• Rothacher, A, 2004, Corporate Cultures and Global Brands, World Scientific
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Accessed July 10, 2011
• Applegate, E & Johnsen, A, 2007, Cases in Advertising and Marketing Management: Real Situations
for Tomorrow’s Managers, Rowman & Littlefield
WEB SITEs:
 http://www.thetimes100.co.uk/case-study--swot-analysis-sustainable-business-planning--110-368-
1.php
 http://www.IKEA.com/ms/en_US/about_IKEA/pdf/sustainability_Report_2010.pdf
 http://www.ikea.com/ms/en_GB/about_ikea/press_room/student_info.html
 http://www.theofficialboard.com/org-chart/ikea
 http://www.ikea.com/ms/nl_BE/pdf/yearly_summary/Welcome_inside_2010_update.pdf
 http://www.slideshare.net/OsamaAlbarrak/ikea-strategic-case-study
 http://www.euromonitor.com/inter-ikea-systems-bv-in-retailing/report
 http://www.thestrategyweb.com/
 http://www.businessteacher.org.uk
 And a lot more. . . . . . . . .

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