IKEA: A Case Study Of Ikea's Business

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IKEA is a Swedish company which specializes in manufacturing furniture and selling them throughout the world. It has got large retail stores located on the outskirts of the major cities. IKEA is well known for attracting customers who are looking for modern designs at good value. IKEA is a Swedish furniture chain that has drawn large opening crowds to its stores as it has pushed into Europe, Asia, and North America. It has built something of a cult following, especially among young and price-conscious consumers. But the expansion was not always smooth and easy, for example, in Germany, Canada and USA. Its operations are simply based on a franchise system in the world. In addition, IKEA’s products are well distinguished by blue…show more content…
He made deal with furniture manufacturers and local suppliers, and then they started to produce the first assembled furniture and sold them to the customers. IKEA has chosen an approach of prohibiting the furniture to be sold to other stores. The first IKEA store was opened in Älmhult, Småland in 1950. Then it continued developing and many designs has been innovated and introduced to the customers. In the 1950’s the company had expanded throughout the Scandinavian Peninsula. Since 1970’s Many of IKEA stores has been opened in Europe, America, Asia, and Middle East. Switzerland was the first country outside Scandinavian Peninsula to have IKEA store, although there was some resistance at the beginning, IKEA founder travelled extensively, and he had visited potential suppliers and convinced them to be an exclusive suppliers of it. IKEA Germany was voted as the most successful business in Germany in 1979. However IKEA hasn’t shown presence in the Developing countries and first IKEA store opened in Dominican Republic was on February 17, 2010 .Throughout the following years, IKEA’s store design and Layout remained the…show more content…
It is also the branch responsible for designing and developing new products and is responsible for the supply chain’s operations. The blue group has its head quarters in the Netherlands and since September 9th 2009, the CEO is Mikael Ohlsson IKEA Holding (the red group) in Luxemburg owns about 70 firms, including IKEA Systems BV. IKEA Systems BV owns the concept of IKEA and all stores are therefore its franchise takers. All retail stores, including the ones that are not run by The Ingka Holding BV, pay 3% of their turnover as franchise fee. The third group, Ikano Holding (the green group) is owned by Ingvar Kamprad’s three sons and is therefore the only group still owned by the family. The businesses within Ikano Holding are diversified, including real estate, insurance, investment management and banking. IKEA HOLDING DIVISION IN MALAYSIA Every IKEA store in all the countries around the world is under IKEA Holding responsibility which is each store have store manager and deputy story manager at top level of their organization. Their division in Malaysia has about six different departments, and the departments
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