Pereya (Pear) Suviwattanachai 931 549 969Nalinrach (Pook) Suksathaporn 931 549 945Sithiphon (New) Suwanboriban 931 410 416

Background• IKEA –> IK = Ingvar Kamprad (founder’s name)

E = Elmtaryd (farm) A = Agunnaryd (home country)

• Founded in 1943 • Beginning: offered pens, wallets, and clocks. • Today :– IKEA Furniture (self-assembly furniture)– 278 stores in 36 countries– 522 million visitors – $28.6 billion USD (Revenue)

Organization• Motto

“to create a better everyday life for the many people” • Product range

focuses on good design and function at a low price• Goal

to reach as many people as possible• Advertisement

- catalog- online- TV ads YouTube - IKEA Nanny Banned Commercial

Store Format

• Large blue buildings• Few windows• One-way layout The long natural way • Furniture showrooms House wares

Cashier’s station Warehouse

Strengths

• Unique Resources– Value– Rareness– Inimitability– Organization

• Cost-Effective– Low-price– Big volume

Strengths

• Strategic Positioning – “Self-service model”– Customers willing to trade (off service for price)– Design by themselves

• Valuable advertising sources• IKEA catalogue– 191 million copies 56 editions 27 languages

Strengths

• InternationalBrand Recognition– Unique philosophy & low price

• Distribution Channels around the world– Europe, U.S., Asia, Latin America

• Immense experience in designing and manufacturing – Cooperating with skilled producers

Weaknesses

• Rely heavily on Europe Market- 81% of the IKEA department stores are located in Europe

• Availability- Most stores are located outside of city centre- Have to drive a long way to come to the IKEA

Weaknesses

• Several complaints on TV ads- many of them were banned

YouTube - Ikea Commercial :: Tidy Up

Opportunities

• Opportunity to grow in many more locations• Seek out smaller markets before entering more

metropolitan locations– Plus financial strength

• Find less expensive real estate in the suburbs than in urban locales

Threats

• Competition- Wal-Mart and Galiform

• Cultural Threats - Especially in Asia market (TV Ads)

http://www.youtube.com/watch?v=3TO90OV1IME&feature=related

• An increase in shipping & material costs• Crime - Shoplifting, breaking in