Ikea International Business Model Analysis - Desklib

STUDENT:
PROFESOR:
IKEA INTERNATIONAL BUSINESS MODEL
ANALYSIS

1. About the company and market situation 2
1.1 Suppliers
1.2 Competitors
1.3 Clients
1.4 SWOT analysis
1.5 Bowman’s strategic clock analysis 4
2. Business canvas model and Improving Business Proposition
2.1 Business Canvas Model Ikea
2.2 Improving business proposition
2.2.1 Quantitative and qualitative objectives 0
2.2.2 Strategies used for business development 0
2.2.3 Methods and tools for evaluating the marketing program 0
2.3 Conclusion
Bibliography

1. About the company and market situation
It all began in 1943 when Ingvar Kamprad, a 17-year-old boy from Almhult, Sweden,
tried to help his parents pay their money with the money they earned from the sale of matches
they bought from Stockholm and then sold it to their neighbors. In time, and because he was
doing well enough, he grew his business from matches to pens and jewelry. So IKEA was not
really related to what we know today. The line of products offered did not include furniture at
all. Using a simple catalog, Ingvar set up a mail order system using the local milk truck to
honor the comets. In 1951, Ingvar Kamprad expanded his business by selling furniture made
in local workshops using furniture catalogs he himself edited. Today, these catalogs are
printed in millions of copies, in 35 languages, and the range includes over 10,000 items. Also,
the design of the manufactured furniture belongs entirely to the company. The first IKEA
store was small and opened in 1953 in Almhut, where the company was founded.
Currently, the chain has 338 stores in 43 countries, most of them in Europe, and the
rest in the United States, Canada, Asia and Australia. Currently, the only IKEA store in
Romania is in Bucharest in the Baneasa shopping area. It was inaugurated on March 21,
2007, being the 253rd opened in the 35th country. The IKEA Group has 118,000 employees
in 40 countries, with 441 employees in Romania and a restaurant with 470 seats. The store
covers an area of 26,000 mand has 1,500 parking spaces.

The Ikea store in Romania corresponds to the concept of joining everything under one
roof. The range of products includes complete solutions for all areas of the house, both
furniture and accessories and decorations. There are over 7000 items in the store, from living
room furniture, kitchens, bedroom, child's room, bathroom, office furniture, to home textiles,
curtains, carpets, bedding, bathroom, lighting, kitchenware, articles for the organization of
the house and finally decorations. Ikea products respond to diverse needs and tastes while
retaining the functionality and accessibility feature.
1.1 Suppliers
Ikea's suppliers are carefully analyzed, especially in terms of the technology used in
the manufacture of furniture products. Ikea representatives claim that around 10% of the
products sold come from local suppliers, with the rest of the products coming from foreign
suppliers. Currently, Ikea has 50 Romanian suppliers producing 550 different items and a
total of 80 suppliers in the Balkan area. About 5% of the 7,000 products in the Ikea store are
produced in Romania. Ikea suppliers in Romania works either in the wood or ceramics field,
but there are also upholstery manufacturers.
Some examples of Romanian suppliers:
PLIMOB:(Sighetu Marmaţiei). It produces simple and upholstered classic chairs as well as
folding chairs and is an Ikea supplier for more than 10 years, delivering about 90% of its
production.
NIKMOB: (Buzau). Ikea provider for more than six years.
IPEC:(Alba Iulia). Ikea's largest ceramic supplier in the Balkans.
ECOLOR:(Cluj). Producer of exclusive furniture for the Ikea Swedish concern
SORTILEMN:(Gherla). It is one of the main furniture manufacturers in the local market.