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Presented By: Haider Qadri, Fahad Saleem

IKEA is a privately held international home products retailer founded in Sweden in 1943 by Ingvar Kamprad. It sells flat pack furniture around the world at affordable prices using a business model of outsourcing labor and manufacturing and selling furniture that is cheap to make and assemble. IKEA has expanded its market globally through increasing market penetration, competitive advantages of multiple store locations, and extending product lines as markets became saturated.

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Abdul Moiz
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46 views7 pages

Presented By: Haider Qadri, Fahad Saleem

IKEA is a privately held international home products retailer founded in Sweden in 1943 by Ingvar Kamprad. It sells flat pack furniture around the world at affordable prices using a business model of outsourcing labor and manufacturing and selling furniture that is cheap to make and assemble. IKEA has expanded its market globally through increasing market penetration, competitive advantages of multiple store locations, and extending product lines as markets became saturated.

Uploaded by

Abdul Moiz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Presented by: Haider Qadri, Fahad Saleem

 IKEA is a privately--
‐held, international home products retailer that sells flat pack furniture
around the world
 IKEA was founded in 1943 by 17-‐year-‐old Ingvar Kamprad in Sweden
 Started by selling farming implements
 Vision: Working toward a world where children living in poverty have more
opportunities to create a better future for themselves and their families
 Mission Statement: create substantial and lasting change by funding
holistic, long-term programs in some of the world’s poorest communities that
address children’s fundamental needs: home, health, education and
a sustainable family income
 Increased market size: First market development by selling existing
products to new market, then market penetration
 Competitive advantages: various locations, cheap to make cheap to sell
(larger market compared to local retailers)
 Extend the product life cycle: Swedish market was saturated in 1960 and
IKEA decided to expand its business to the U.S
 Cheaper to outsource labor
 Quality control is done anyway by sending 10 designers
 IKEA has a consumer base used to receiving affordable furniture that looks
nice
 Changing the methods of production leads to higher costs, higher prices and
fewer loyal customers
 The high flow of visitors at one
time leads to many problems resulted from the lack of manpower
 Scandinavian furniture too expensive for average consumer
 Name recognition in a foreign market
 New technology that monitors cash counter- never understaffed
 Severely cut costs so that prices went down; easy to assemble, cheap
wood.etc.
 More acquisitions, awareness strategies, brand message changed to:
affordable lifestyle choices

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