Smart Innovation and Sustainability of IKEA

Topics: Renewable energy, Sustainability, Strategic management Pages: 21 (1763 words) Published: November 18, 2013
SMART INNOVATION AND
SUSTAINABILITY OF IKEA
GROUP 3

Outline
Review from Midterm
Excerpt of IKEA

SWOT of IKEA
IKEA Business Model
IKEA Network
IKEA Innovation

IKEA Niche Market
IKEA Sustainability Strategy
IKEA Products
The Use of Technology in IKEA

compare with IKEA and Wal-Mart
Conclusion

Excerpt of IKEA (1/3)
1943 IKEA
established
1948 Furniture
Business,
Catalogue
Published
1956 Self
Assembly
Furniture

1975 Baby
Boom, New
Customers more
sofas
1973 IKEA Rapid
Expansion, Introduce
Particle Board

1958 1st Ä lmhult
Store

1968 1st
Computer
64Kb memory

1965 1st Store
in Norway &
Stockholm,
Restaurant

1965 Self
Service &
Pickup

1976 North
America &
Canada
Expansion
1979 The Billy
bookcase is born

1982 IKEA
committed to Charity

Excerpt of IKEA (2/3)
1984 Excellent
Swedish Design
Award

1991
SWEDWOOD
become IKEA
group

1995 IKEA PS Series,
Designer free to
adjust, parameters
set

1985 IKEA Enters
U.S.

1989 Assign
Environmental
Manager

1997 IKEA enters
internet, IKEA
Children Launched

1988 Develop IKEA
Workshop,
International
Retailer (25%)

1998 IKEA enters
China

1987 IKEA
enters U.K.

2000 IKEA enters
Russia, IWAY

1985 New
organization
“IKEA at Work”

1986 Day to day
control: Andres
Monberg

Excerpt of IKEA (3/3)
2006 IKEA
enters Japan,
Renewable
Energy

2020 People, Planet,
Positive Sustainability

2008 IKEA
enters S&SE
Asia, 22.8% FSC
Certified Wood

2015 More
renewable green
energy investment

2010 IKEA set 5
years goal

2011 Ware-Store
energy efficiency
increased 3%, 40%
Managers are women

S

SWOT of IKEA

1. A strong global brand which attracts key customers
2. Vision to create better world for many people

W

1. Size and scale of its global business hard to
control standard & quality

2. IKEA needs to differentiate its product from
competitors

3. Strong concept of wide range products (9500+)
4. Democratic Design (function, quality, design, price)
5. Volume commitment & long term supplier partnership
6. Good SCM strategy

3. Improve the importance of communication
with its customers & other stakeholders about
its environmental activities

7. The use of technology (e.g.: IKEA OGLA)

O

IKEA

1. Growing demand for greener products
2. Growing demand for low priced
3. Growing demand for reduced water usage &
carbon footprint
4. the advancement of technology

T

1. Social trends such as the slowdown in
the first time buyer
2. More local competitors
3. Economic recession
4. Poor working condition in IKEA
suppliers

IKEA Business Model
Limited but
high
coverage
customer
service

Assembly by
customers, self
transport, knock-down
kit packaging
Modular
Products
Design

IKEA is a private
company under
INGKA holding, the
public company
based in
Netherland

Catalogue

IKEA
Affordable
Solution for
Better Living

Wide variety with
ease manufacturing Low cost
Manufac
process

Self
collection
by
Customers

Ample inventory on site,
high traffic layout,
suburban area

turing

In-house design focus
on cost manufacturing,
long term supplier
IWAY Sustainability (Economic, Social, Environment)

IKEA Network

IKEA Innovation
Customer
Relation

Design &
Product
Development

Finance &
Business
Navigation

Human
Resource

Communication
& Interior
Design

Information
Technology
“Innovation is needed to build sustainable solutions
into the IKEA range. In addition, IKEA relies on the
company’s co-workers for new designs and product
innovation; it creates atmosphere in the factory
where everybody feels free to share ideas and
exchange information.” Mikael Ohlsson, CEO
Marketing and
Communication

Logistic
Sales

Restaurant

Sustainability
& TQE

Purchasing

IKEA Innovation
Flat
Packaging

Welldesign

High
variety



Self service assembly,...


References: IKEA excerpt and timeline (2012). Retrieved 09/06/2013, from:
http://danielromo.wordpress.com/2012/02/02/excerpt-from-ikea-timeline-1931-2010/

More Bang to the Innovation Buck (2012)
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