Ikea Case Analysis

Ikea was founded in Sweden since 1943, IKEA has offered home furnishings and accessories of excellent style and performance at low costs, so the majority of the people can afford them. Ikea is the largest furnishing company in the world. The company known for its modern high quality furnishing, many people now buy their furnishing because of its high quality and lower prices which many furnishing companies failed to achieve both. Ikea now owns and operates 351 stores in 46 countries around the world. Also, Ikea is the most popular for college furnishings and its one of largest users of wood in the retail sector. Ikea’s vision is to “Create a better everyday life for the many people” because they offer their furnishing in lower price anyone

Ikea’s concept relies on their market positioning statement “Your partner in better living. We do our part, you do yours. Together we save money” and it focuses on the product design, consumer value and the cleaver solutions ; by using low-cost materials in a very novel incoming way and minimizing the costs of their production, distribution and retail costs in a smart way so their customer can have the benefits of their lower prices and their well designed high quality furnishing. Ikea has a around 590 million visitor p.a to its stores all over the world, in addition ikea’s main marketing channel is its catalogue that is distributed world-wide as 191 million copies in a totally different countries with different languages. Its catalogue has pictures of their furnishing with more details about the costs, shapes and colors also, their delivery service that is considered to be on of their huge advantage; they deliver the products to the customers houses and they build it for them for free. in addition one of ikea’s advantages is that it let the consumer shape the product if they want to because they have their own warehouses and

Supply chain management: Ikea’s supply chain has a wide-range spread in every considerable country around the world with growing sales and purchasing. Ikea’s supply chain in very complicated because it has so many branches around the globe, it has 1220 suppliers in 55 different countries working on their furnishing designs. Moreover, the stores that are supplied from 31 central distribution centers in 16 different countries or directly from suppliers. In some cases, Ikea’s opening ceremony is a national event, and people sometimes travel to shop there. Presently, Ikea is planning to open 10 to 20 new stores every year and it aims to double it sales in the next five years. As the pace of growth in sales, several stores and warehouses and business areas increase 30% of its variety every yea, supply chain planning is a real challenge because it depends on the