Ikea

Topics: IKEA, Ingvar Kamprad, Älmhult Municipality Pages: 7 (2204 words) Published: September 4, 2013
Research Paper
IKEA
By: Rahul Mor.
ID: 12847704
Lecturer: Mr. Frankie Yee.
James Cook University
Singapore

INDEX

1. Abstract--------------------------------------------------------------3 2. Introduction---------------------------------------------------------4 3. Measures of success-----------------------------------------------4 4. Reasons Behind success-------------------------------------------5 5. Leadership in IKEA-----------------------------------------------6 6. Recommendations--------------------------------------------------7 7. References-----------------------------------------------------------8

Abstract.
This research paper studies the Strategies followed and used by international retail giant IKEA, which is well known for its affordable, modern designed furniture products which can utilize for household and offices. Being a largest furniture retailer with 332 stores in 44 countries IKEA will soon open stores in India, Egypt, Indonesia, South Korea, New Zealand, Latvia, Estonia, and Serbia. The paper focuses on the successes of the company and tries to find out the reasons behind the strategies applied to achieve the successes. And the leadership strategies bean followed to achieve the goal.

Introduction
IKEA founded by Ingvar Kamprad in Sweden, 1943 when he was 17 years old. IKEA grown as international furniture retailer with 332 stores in 44 countries across the globe, generating annual sales of 27 billion euros. Company deals with self-assembly furniture or furniture that ready to assemble ex. Shelves, bed, and desks etc. mostly household furniture .well-known for its low cost and attractive furniture. The Mission Statement of Ikea is “ To offer a wide range of well-designed functional home furnishing products at prices so low that as many people as possible will be able to afford them.” And the vision is “To create a better life for the many people” Measure of success : There are many measures causes why IKEA is so successful, like Ikea keeps the prices of product low and products are very modern easy to assemble which made Ikea popular hence successful .It’s a reason on surface but to achieve this success they managed their products really well while maintaining low the costs. The main business of Ikea is furniture and I believe success is in its name I= Innovation, K= Knowledge, E=Experience, A= Accessibility. The strategies been used to make innovative products which are up to date and relates to needs of the customers. As per the market needs and current trends based on knowledge of the research and development team which mainly based on customers experience and it gives the experience to customers while they walk in massive stores of Ikea about the products, the products are innovated like folding bed, chairs, sofas, adjusting shelves etc. and stores are easily accessible for customers with huge layouts and car parking’s which helps customer’s to pick up the products from wide range and move. All the instructions are provided about the assembling of product. Many stores are open 24 hours so that customers can come any time as per their convenience to shop. It’s like playing with customers psyche by attracted them with what they needed and showcase something extra and new. Low cost can be the other measure of success of Ikea , “ Your partner in better living. We do our part, you do yours. Together we save money” is market positioning statement of Ikea, the low price is not because of compromise on quality but because of some key strategies like stores are placed in highly populated area, flat packing with cheap and recyclable material which reduce storage , shipping and labour costs, the raw material been bought in bulk in massive scale which cut the cost ,transportation cost also minimized by using inexpensive modes of transport, in-house designing which help to reduce the commissions to outside designers, energy saving , waste reduction and recycling help to maintain...

References: (n.d.).
http://www.ikea.com/ms/en_GB/about_ikea/facts_and_figures/facts_figures.html. (n.d.).
Mikael Ohlsson ,Ikea group. (2013, augast 1). IKEA’s net rises 8% on market share growth, sales. Hindustan Times.
Moskowitz, R. L. (2007). IKEA Named to Fortune 's 2007 "100 Best Companies to Work for" List for Third Consecutive Year . IKEA National Press .
Niven, P. (2011). Balanced Scorecard Diagnostics: Maintaining Maximum Performance. John Wiley & Sons.
Norton, R. K. (2012). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business School Press,.
P. Jonsson, M. R. (2011). Centralized Supply Chain Planning at IKEA. Supply Chain Management: An International Journal.
S. Stumpf, R. F. (13 July 2013). The Strategic Development of High Potential Leaders, Strategy and Leadership. Strategic Devlopment of Leaders.
Tucker, I. (2013, july 13). Adrift in a Shopping Maze: it 's a Successful No-Exit Strategy. The Gurdian uk.
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