Ikea Feasibility Report

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  • Topic: IKEA, Furniture, IKEA Catalogue
  • Pages : 24 (8195 words )
  • Download(s) : 518
  • Published : May 19, 2011
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Executive Summary2
Introduction to Furniture Industry3
World Furniture Production3
Role in World Economy4
Characteristics of the furniture industry4
Industry Trends4
Furniture Industry in Pakistan5
Introduction to IKEA6
The IKEA Concept6
IKEA Range7
1. Design7
2. Function8
3. Low Price-8
IKEA Product names8
IKEA Catalogue9
Major Global Competitors9
Major Pakistani Competitors9
Government Policies Targeted at the Industry12
Policies to encourage location in a host country12
Policies to Protect Local Firms12
Policies to Discriminate Against Foreign Firms13
International regulatory Frameworks13
Predominant Corporate Strategies of the Industry14
Employment Pattern15
Working Conditions16
Which country is gaining / losing jobs16
“Pakistan, As A Potential Market For IKEA”20
Government policies and current environment also favors IKEA21
Conclusions and Recommendations25


First of all we would to like express our gratitude to ALLAH ALMIGHTY who blessed us with the strength and ability to complete this project on time. After that we would like to thank Professor Ayesha Pervaiz who provided us with help and precious time to guide us through the course of this project. She has always been obliging and kept us affianced in our course. We would again like to thank Professor Ayesha Pervaiz who has not only taught us only the content of the book but has also prepared us for the practical world. Then we would like to thank our classmates who helped us in this project and gave us moral support to complete this task. In the last we would like to thank each one of us in coordinating and cooperating in every situation we faced during the completion of the project.

Executive Summary

Pakistan’s share in the international wooden furniture market is insignificant, despite the fact that the country has a history of craftsmanship and innovation in the field of wooden furniture. The wooden furniture industry represents 95 percent of the total market in the country. The leading furniture making areas of Pakistan are Chiniot, Gujrat, Peshawar, Lahore and Karachi. In terms of exports, Karachi comes first, followed by Lahore and Peshawar. Pressure on the domestic industry has immensely increased as other countries like Thailand and Korea have started exporting extensively to Pakistan. In Pakistan, the wooden furniture industry can be categorized into small scale and cottage. These units unfortunately use obsolete machinery, inadequate tools and manual labor for manufacturing wooden furniture. This means high costs and poor output. In our report we have we have chosen IKEA as our brand. We are focusing on the opening of its franchise in Pakistani market, taking in consideration all the pros and cons of its opening in Pakistan. For this purpose we have decided to carry out overall analysis of the furniture industry keeping in mind different governmental policies, pressures of global standardization, labor force, and employment trends etc. Moreover, we incorporated Ikea’s mode of entry in Pakistan and its investment opportunity analysis of the company along with all the description of the issues which are production costs (land, labor, capital, transportation, technology & innovation) and global competition.

Introduction to Furniture Industry

The furniture industry consists of all the companies and activities involved in the design, manufacture, distribution, and sales of functional and decorative products for use in houses, schools, offices and other places to make these places suitable and comfortable for living or working in. In addition to furniture's functional...
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