Ikea-Value Chain

Topics: Supply chain, Value chain, Supply chain management Pages: 4 (1235 words) Published: August 28, 2012
1. Introduction
IKEA is one of the most successful manufacturing and retail furniture companies operating in today’s global marketplace. IKEA manufacture from the bottom up, top down furniture that offers environmentally friendly, state of the art designed furniture that is both affordable and attractive to its customers via their online, catalogue and worldwide distribution channels, with a logistics network that are low cost footprints with the enforces on cost efficiencies couple with technology, product design, excellence and customer satisfaction. IKEA was founded by Ingvar Kamprad in a small village in Sweden. Its Scandinavian–style home furniture offer attractive designs at affordable prices. And IKEA is obtainable from 275 stores throughout 44 countries throughout the world. Employing nearly 70,000 employees who are engaged by IKEA globally with 59,000 employees working alone in Europe (Tengblad, 2006). This essay is going to analysis value chain of IKEA in two areas which are primary activities and support activities. 2. Internal and External Realities of IKEA

IKEA is one of the leading manufacturing and retail furniture companies in the world with its operation in over 44 countries across the world (Jonas, 2011). With the support and assistance from more than 1,500 suppliers spread over 50 countries. The company‘s initiatives and commitment to provide top quality products at affordable price to be identified as IKEA’s competitive advantages. So far, the company has been successful in sustaining and reinforcing its low priced structural development. The company’s stylish stores couple with its online stores and catalogue distribution add to its marketing strength to attract customers globally. IKEA’s progressive management style is seen as one of its strategic factors in order to sustain its business for the long term. Certainly, the company has opportunities to increase its market share by exploring new markets across the world and by making...
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