Nathan West

Page 16: IKEA Yearly Summary Reporthttp://www.ikea.com/ms/en_US/about_ikea/facts_and_figures/yearly_summary.html

Why is IKEA so successful all over the

world?

Page 22: IKEA Yearly Summary Reporthttp://www.ikea.com/ms/en_US/about_ikea/facts_and_figures/yearly_summary.html

Real Estate mainly throughout Europe (208/287 “Group Stores” = 72% of stores in Europe!!)49/287 stores are in the United States or Canada = 17%

IKEA Store Locatorhttp://www.ikea.com/ms/en_US/about_ikea/facts_and_figures/store_openings.html

World map shows over 72% of stores concentrated in Europe, 17% in the US/Canada, and remaining

11% scattered throughout Asia, Russia, and Australia

Page 23: IKEA Yearly Summary Reporthttp://www.ikea.com/ms/en_US/about_ikea/facts_and_figures/yearly_summary.html

Key to success are great products, low cost, and the best of the best real estate

The main reasons for success in whatever international market they open in are:Careful consideration and strategic planning for opening super stores

Top of the line real estate locations in fastest growing cities of the world

Great products at affordable costs

Criteria for expanding:High population density (at least 1 million people in a 20 mile radius)

At or above average per capita income for the region (dollar amount varies per region)

Strong brand awareness in the region

Growing cities with optimistic long-term futures

Business friendly, non-corrupt and safe government (taxes, corruption, regulations, military conflicts, etc.)

Following this strict criteria will ensure success in any market worldwide...