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International Business BA (Hons) < BHO-0171 Electronic Commerce> (HKMA) Module Examiners : Abbdul Jabbar Year: 2010/2011 INDIVIDUAL ASSIGNMENT Case Study Analysis
A better everyday life
By Leung Sze Wa Teresa - 1078713
Contents Executive Summary Introduction Internal & External Analysis SWOT Analysis PESTLE Analysis Business Models Recommendations Analysis of Business Models Conclusion References Appendix 1 Website Navigation
Executive Summary Evaluate a global company IKEA’s e-Business strategy by internal and external analysis under its current methods of working through the internet world with particular attention to security issues of improvements Introduction IKEA Concept and history IKEA has approached its world domination project with a missionary zeal since 1970s. Till today, IKEA is the No.1 retailer of furniture items in the world offering a wide range of welldesigned, functional and inexpensive home furniture products protruding the famous IKEA Concept. From modest background, for more than 65 years, IKEA has gradually expanding the market share starting from Europe, North America, Australia; now her focus is on merging markets especially in Asia including Hong Kong, in order to keep the organizational growth as well as sales turnover. The IKEA story begins in 1926 when founder Ingvar Kamprad. The first IKEA store opens in Almhult, Sweden 1958. IKEA is a worldwide furnishing company grand total with operations in 38 countries and 309 store and 272 stores in 25 countries are owned by the larges IKEA franchisee, the IKEA Group other 37 stores owned and run by other franchisors 17 countries, one store in Netherlands is owned and operated by Inter IKEA Systems B.V. all over the world. It is a Swedish-based company built on the idea of offering 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. IKEA was founded in the 1940s by the entrepreneur Ingvar Kamprad, who still has control over the company through the INGKA Foundation in the Netherlands. The name IKEA is an acronym for Ingvar Kamprad Elmtaryd Agunnaryd where Elmtaryd is Mr Kamprad’s native farm and Agunnaryd his native village. The IKEA group is solely owned by the foundation through a holding company (INGKA Holding B.V). It is therefore not listed on any stock exchange. The picture below illustrates the operational structure of the organization. The legal structure differs somewhat from the operational one.
The industrial group of IKEA is called Swedwood. The group support functions (legal services. food services. human resources) should be considered as strategic functions for the IKEA group as a whole and incorporated as IKEA Services AB under Swedish law and is also the legal basis for the EWC. saw milling and board manufacture to furniture.2 billion in 1984 there has been a rapid development to EUR 19. every day. From an annual turnover of EUR 1. Expert functions such as ICT. From its inception in 1950 the company expanded at a moderate pace until the beginning of the 1980s. from forestry. and retail equipment operate under economies of scale and support the basic operations. Hong Kong. In 1975 the first IKEA opened at Tsim Sha Tsui. its operations cover ever step of production. The first IKEA store opened in Sweden in 1958. The biggest expansion has been in the late 1990s. Vision IKEA create a better life for everyone.8 billion in 2007. Mission The business idea behind IKEA is to offer a wide range of home furnishings with good design and function at prices so low that as many people as possible are able to afford them and still have money to spend to create a better everyday life for the majority of people Internal & External Analysis SWOT Analysis Swot Analysis Of Ikea(Hk) SWOT analysis of IKEA(HK) Strength -IKEA has the own industrial group.The foundation is the main shareholder in the holding company. As every production step is under the IKEA control. everywhere. which produces wood-based furniture and wooden components. education and training in the area of production and design. The purpose of the foundation is to support furniture design. . IKEA can have efficient productions which enable it to maximize productivity and minimize waste-generation. The first store outside Scandinavia opened in 1973 in Switzerland.
cited Jones.-IKEA has its own design group.Business Of Ikea IKEA is a Swedish based furniture and furnishings company that sells “everything from cutlery to kitchens” (Jones. B 2007). -IKEA has the strong brand image. IKEA had recalled Parodi and Apelsin glass cases in January 2007. sensitivity to customers and acting sensibly with suppliers. Sourcing from low cost countries like China would reduce its costs and enable IKEA to concentrate on increasing its market share through competitively priced product offerings. What’s worse. As there are only three retail shops in Hong Kong. Opportunities -Sourcing from China is one opportunity.. -The problem of product recalls. There is an opportunities to gain more revenue in online retail sales. In 2006. a provision of purchasing the products online. and by late 2007. PESTLE Analysis Organization’s e-Business Strategy E. The company’s success is based on its ability to adapt to change. Anders Dahlvig announced that there would be no further investment in online stores (Carroll. These can make sure that their products can match the trend of the industry. . the present of industrial group can co-operate with the design group. Just take an example.. e-commerce has had advantages such as increased accessibility and disadvantages such as increased costs. it is inconvenience to the customers. Weaknesses . Sometimes IKEA recall the product due to faulty base. This act will give out a poor perception to the customer. However. G 2007). -Bright prospect of online sales. you do your bit and together we save money”. IKEA made plans to expand their e-commerce strategy to allow people from the United Kingdom to purchase goods online (Kemp. especially those would like to buy the home accessory will have a chance to switch the buying from IKEA to the shop which is near home. E 2006). As the IKEA website is one of the most visited home furnishing websites in Hong Kong. By the recent research of Datamonitor. The strong brands enhance customer loyalty and lead to repeat purchases. the potential customer of IKEA.763. This suggests that the e-commerce site performed poorly (Paul Holding. IKEA’s Chief Executive Officer and President. G 2007).Not enough distribution channels. The business revolves around the philosophy of “We do our bit. What’s more. IKEA ranked 41st among the best global brands around the world in 2006 with a brand value of $8. which efficiently convert the design into the finished product.
They want to learn how to improve their lives at home. and all are given technical assistance." HUGE is the interactive agency of record for IKEA and handles strategy. . for managing the flow of components into warehouses and transferring the products to its stores. Anna has proven to be very effective in providing 24/7 support and advice to millions of IKEA customers worldwide. but in some cases also themanufactures the products. usable workflow. and Youth Room. IKEA values design for low cost production. IKEA Online Group Manager. IKEA is dedicated to granting the customer full access to its celebrated home furnishing knowledge. the automated customer service chat character driven by artificial intelligence. and are aided to boost production to global standards (Kippenberger. organized by the rooms of their house. home transport and self assembly. creative. Another change is an expanded role and more prominent position for "Ask Anna". J 2007). http://www. T 1997).users can engage with the images and see tips and ideas for a variety of products and everyday situations. Dining Room. bulk buying. J 2005). as well as attempting to avoid waste in their designs. IKEA designers work with producers to find ways to save costs. help to secure loans.. Hallway & Entrance. "The trick was to develop a user interface that balances efficiency and discovery. which is consistent with the values underpinning the business model.com/essays/E-Business-Ikea/167107 E-Commerce @ IKEA BROOKLYN — IKEA announces a new website design. "It is a great challenge to translate the IKEA brand values and visual identity to the Internet. Partner and Director of User Experience at HUGE. This works in favour of both participants in an exchange. Kitchen. There are 2300 suppliers to the business. Room images on the new site are fully interactive. J 2005). The logistical system. is reputed as one of the most refined in the world (Kippenberger. and they want everything integrated into a single. currently rolling out in 24 countries worldwide. and promotions. Where other retailers are delivering basic data on products.oppapers." says Gene Liebel." The new site architecture is based on the rooms of the house: Bedroom.Values at the core of IKEA IKEA integrates distribution with sales (Kapferer. but what's even more interesting. such as Europe and Asia (Klevås. while their customers provide self service. Living Room. Basement. and we are very content with the work HUGE has done for us in this area. Attic. T 1997). flat packaging (Klevås. they keep us focused on the evolving goals and habits of the online customer. The new website features an increased focus on the sharing of IKEA furnishing knowledge with consumers. Children's Room. "Research shows that IKEA customers have very high expectations for the IKEA website — they expect an experience that is about much more than just the presentation of basic product information. prices. Their design feels very much like IKEA. reducing support costs. and providing functional products at a very affordable price. and production for the furniture retailer's retail and corporate websites in over 20 markets worldwide. located in several continents. as it saves both the company. engineering support. Says Allan Lidforsen. Workspace. Garage.. Laundry Room.
to create mass brand buzz. Think about it. Shipping costs are probably one of the most difficult things for online retailers to deal with. I just visited the store yesterday to buy some storage bins. However this will definitely have to be addressed if the website becomes fully transactional and things are not in stock etc (i.000 lids for bins. charge too much and people will think twice before buying from you.g.your $100 bookcase might end up being double the cost now because of shipping. and to date it’s still missing. Only some customers know that these characteristics are communicated through IKEA’s digital offering – for example. have devised a world-class creative strategy for IKEA by leveraging the cost-free Facebook platform. advertising agency. if the items were not in a client would have to keep coming back to check. One of the services home shopping offered was to maintain backorders and call clients when the items came in. We do very well considering the size and scope of our [worldwide] logisitics. There are reasons why an online retail channel hasn’t been pursued just yet– all unknown to me. Recommendations There are three words I often associate with the IKEA brand: cheap. Perhaps it’s that they don’t have any serious competitors in the online market. Every customer knows that these characteristics are deeply etched into IKEA’s product design and development philosophy.e. However. buy the other half and pay shipping again? As to ecommerce/home shopping specifically: I believe the shipping network will have to be looked at (many clients think our shipping rates are exorbitant) and then they can come up with more reasonable shipping rates. the photo tagging and comments functionality. they launched the Facebook Showroom Campaign. how exactly will you handle backorders online?). however things could be improved as IKEA is known for having issues with stock levels (e. pay shipping. Perhaps it’s that their current distribution model can’t handle a multi-channel offering without significant process re-engineering. specifically. As a corollary. In stores. Charge too little and you WILL lose money. not specific to ecommerce.I always felt logistics was one of our biggest problems. Forsman & Bodenfors. you’re better off buying it locally. or e-commerce. In my opinion. Here are some reasons why: . social media is only one piece of the digital channel puzzle. they have received 1. I believe e-commerce should be part of IKEA’s digital strategy and should be the next big offering from IKEA. engaging brand. innovative & stylish. Will it be the same procedure online? Will the customer buy half their stuff. This is an overall issue with IKEA. last year. Another piece is online retail.odds are. IKEA is now positioned as being more mature in social media as well as a conversational. Either way. Or perhaps their research shows that customers don’t need it (which I highly doubt). but the bins themselves are only arriving in a month!).
YouTube). having said this. to develop this new web application (once again. However. let alone anymore painful.1. 2. IKEA wouldn’t be isolating the Apple-using market (which by consumer behaviour shares similar characteristics to IKEA customers – innovative & stylish). visual.com forum and being able to directly purchase that product within the forum itself. personalised shopping lists as well as the downloadable CAD 3D-modelling application. Everything is available at the tips of your fingertips…literally. For example. E-commerce can act as the common glue between these touch points. other than Flash. in real time. Imagine being recommended a product by a friend on the IKEAFANs. resembling a hub-and-spoke framework. express checkout once you’ve modelled your dream home or office. Install a cabinet…move a heavy shelf…that’s just two clicks.com/] There’s a real cult following for IKEA products (not as disturbing as Apple. I do realise that the user experience should not be dictated by the technology stack. In the digital world. traffic can be driven from a tweet to a particular product page. The current digital customer touch points need to be interlinked A quick scan of IKEA’s customer touch points in their digital channel indicates social media presence (Facebook. Twitter. The current in-store customer experience is painful I’ve commonly heard that the in-store experience quickly degrades from being fun and exciting to long and boring. The digital channel empowers the customer One characteristic the digital space has over the in-store experience is the ability to tangibly model. which is uni-directional. but subtly displayed to the user as recommendations. And it’s all blown away. IKEA shoppers are cult-like IKEA shoppers love IKEA products. An e-commerce solution would assist in diluting this negative customer experience by offering customers with a new channel (that’s flexible and multi-directional) that they can peruse around. I would also consider other technologies. 3. The path to cross-sell/ up-sell couldn’t be any more obvious. This way.com [http://www. tangible and somewhat realistic experience cannot be provided to customers in the real world currently. Only some of these digital assets are interlinked. This highly immersive. Cross-selling/upselling would also be present.ikeafans. . your dream home or office. They love to talk about what they’ve purchased and recommend their favourite items to their friends. I would tap straight into this cult energy. customer should be able to purchase a product they’ve found from the online product brochure. The only change I’d make to the downloadable 3D-modelling application is to remove it and replace it with a web application. Likewise. so as not to isolate the Apple market). online accounts. 4. but still somewhat formidable). Imagine being able to buy all of your furniture in a hassle-free. All customers are funnelled down one path and have to pass through all showrooms before they can exit. IKEA provides a downloadable CAD 3D-modelling application (PC’s only – sorry Mac fans) which gives customers full expression to DIY. the customer is empowered. Don’t like it? Click. With an e-commerce capability. All you have to do is look at IKEAFANS. You’re improving customer experience by eliminating the hassle of having to travel to your closest store and then search in-store for that particular product. an online and downloadable product brochure. Why? Because of the physical store layout.
and we're awaiting further details of how it was carried out. Conclusion IKEA focus on off line but little on online Compared to traditional furniture store. On the Visual. telephone numbers and e-mail information belonging to customers who had ordered a catalogue from IKEA. just one Internet customer actually gained access to the information." This is the latest in an increasingly long line of blunders to blight big name companies that have entered into e-commerce. exposing the private details of hundreds of customers online. IKEA there is a big breakthrough in furniture design and innovation. The glitch revealed the names. IKEA Do not mean to use bright colors. Advantages and risks at security issues Swedish furniture firm IKEA experienced a security blunder at its online store this week. "To our understanding it was an isolated incident on the North American Web site. Business Models for improvements Andrew Ranger and the Taboo Group have just recently launched a campaign for Where Is called Whereis the party. A Web server configuration error left a database file containing the customer information temporarily unprotected and accessible to any visitor to IKEA's Web site. The company is carrying out an investigation into the incident.With the Australian Online Retail market ramping up. with different colours . For the opening of the new IKEA Malmö store. Ikea used this same type of viral spreading but instead of them tagging they asked the punters to tag themselves in photos in the Ikea Furniture competition. she said." said the spokeswoman. and the store plugged the hole shortly after it was alerted. their products. we created a Facebook campaign. Without messing around. "The site closed it down pending an inquiry. Consumer groups are also more concerned about the impact this could be having on customer confidence. But at the same time staying relevant and focusing on IKEA's offer. they got the word out there by tagging influential Melbournites in the promotional advertisement for the event. addresses. let’s hope IKEA can get on board and offer customers with an ecommerce channel. According to an IKEA spokeswoman. The mission was to create something engaging that would have the potential of spreading by itself beyond the borders of the Malmö region.
can increase some of the move vintage goods. it is recommended that IKEA Commodity prices. in the hope that IKEA can improved.htm Appendix 1 . consumers still feel that there is room for Bargaining. let the consumer’s right to lear The price is more popular: on the product price. even intimate provides little boy games.com/ http://www. introducing native Swdedn. Most consumers think IKEA indoor fixed line not clear at some area. IKEA Advertising a bit inadequate.to attract different consumer. If you want the IKEA specialization. it is recommended that IKEA you can push Out of food for seniors. so that consumers put more with kids shop of the heart. IKEA in the catering industry. More interested in after design products. Food commodities and varied: IKEA Most of the consumer group towards younger. more comfortable shopping space.asp?swfId=facts0 http://www.ikea. More funds and buman resources. He sells. evoked memories seniors.ikea. I certainly can have on sales Obvious results. IKEA Shopping. but “ad is absolutely not less” To increase the brand image and brand service to the consumer through e-Commerce References http://franchisor. relative to its. so that the consumer has a better. but ignore the needs of seniors.html http://images. so if IKEA can have more price policy can provide to the consumer.com/ss/06/07/top_brands/source/41. Get more profit. Durability. people. and to attract consumers. IKA “Should increase creativity and practicality on the commodities.businessweek. opening more branches will inevitably need to be more. In addition. IKEA consumer group most of them are college students over intellectuals.ikeafans. But most of the consumers because promotions and to IKEA shopping.com/showContent. Advertising and marketing to increase: because IKEA advertising and sales promotion programme of less branch distribution only to the crowd of more local. against the IKEA food commodities “should be need for a more detailed description of contents and introduction. more emphasis on furniture.com/ms/en_HK/about_ikea/local_project/local_involvement.
The display room of the site is almost exactly the same when you visit an IKEA store in your locality. These + (plus) signs describe the furniture on display and its function as well as give the buyer more options such as color and style. You can easily compare styles and prices while trying to imagine how it feels to sit and lie down on your desired bed and sofa. an array of living room furnishings appear and one can notice that there are + (plus) signs on the different parts of the furnishings. When the buyer decides to buy the product. The store’s online display center shows virtual rooms where shoppers can see the different parts of the house in a real life setting. is one of the biggest home furnishing stores in the United States and has branches in many parts of the world and their ecommerce template is one of the best. which can also be seen on any IKEA showrooms. Ikea’s ecommerce design makes their virtual store customer friendly. This Swedish store has been selling ingenious designs and high quality furniture for bedroom.Ikea’s Virtual Display Center IKEA. Website Navigation . Upon visiting the site. Indeed. living room. They are then invited to relax and feel comfortable while doing their online shopping in such a way as they are shopping in their local IKEA store. All it takes is just a little of your imagination. When you enter their virtual living room for example. the guests are asked what place or country they are in so as to give them the exact and available products in their area. IKEA’s online shop makes almost no difference in shopping at any IKEA branches. which originated from Sweden. s/he may simply add it to his/her shopping cart. kitchen as well as textiles and children furniture at affordable prices. And it is just so nice to see that their online store is fully functioning.
IKEA Singapore aims to pull the plug on all incandescent lights by 2012 [Press Releases] April 1. 2011 by Eugene Tay Filed under News Leave a Comment .
Small Steps with Lighting Lighting is a basic necessity and it commonly accounts for almost 25 percent of electricity consumption in a typical household. to encourage Singaporeans to live a more sustainable life at home. Earth Hour. climate and cotton. This improvement is a never-ending job at IKEA. it is also committed to integrating sustainability into its business practices and product range. In line with the global IKEA initiative. the goals of sustainability and environmental design have been integral to the IKEA business strategy and IKEA is constantly doing what it can to help create a world where it can take better care of the environment. IKEA Singapore decides to take ownership of the . One of IKEA’s global efforts includes the collaboration with World Wide Fund for Nature (WWF) to decrease carbon footprint by promoting responsible and sustainable use of resources. The partnership includes projects on forestry. IKEA Singapore will begin to phase out all incandescent light bulbs in its stores and targets to completely eliminate them by 2012. IKEA also offers many environmentally friendly products such as the RATIONELL waste system and IKEA 365+ foodsavers. In Singapore. Not only does IKEA offer affordable and quality home furnishing solutions.Leading home specialist IKEA is dedicated to creating a better everyday life for the many people. the earth’s resources. IKEA’s Responsibility Beyond Home Furnishing Since the beginning. the solar-energy SUNNAN lamp campaign and providing green parking lots for bicycles and charging stations for electric motorcycles. IKEA has proactively embarked on many green initiatives like Say “No” to Plastic Bags. and each other. In its continuous bid to help Singapore move towards a greener and more sustainable environment.
LED lights use 70% less energy and burn at least 20 times longer than a conventional incandescent light bulb. . It’s a little step with a big impact on the environment. IKEA offers lighting solutions that will enable Singaporeans to live a more sustainable live at home. IKEA hopes to support Singaporeans in making informed choices on energy-efficient lightings. With over 7 million visitors from September 2009 to August 2010. and helps them save money. Make An Easy Switch To Low-Energy Lightings As a leading home furnishing retailer in Singapore. Did You Know? IKEA offers lighting solutions that are more efficient and have less negative impact on the environment. Halogen light bulbs use 30% less energy and last 2-4 times longer than a conventional incandescent light bulb.15 GW. Over 112.environment and make a stand by pledging to pull the plug on all incandescent lights by 2012. halogen and LED (light-emitting-diode).000 hours versus 1. Singaporeans can take pride in creating a home that contributes to a healthier planet. • • • CFL bulbs are a great alternative to traditional incandescent light bulbs. Thereby helping to speed up the market transition to energy-saving lights.000 low-energy light bulbs have been purchased at IKEA Singapore from September 2009 to August 2010. IKEA customers have saved energy up to 5. One 20-watt light bulb provides as much light as a 100-watt incandescent light bulb. By replacing their incandescent light bulbs. eliminating incandescent lighting is the simplest way for IKEA Singapore to lead the charge for IKEA customers (and Singaporeans) to enact small changes at home and reduce environmental footprint in Singapore.730 households in Singapore. enough to power up about 5. By encouraging Singaporeans to adopt energy-saving lighting solutions. IKEA range of energy-saving light bulbs is based on three main energy-saving techniques: CFL (compact fluorescent lighting).000 hours) and use 80% less energy than a conventional incandescent light bulb. without getting anywhere near as hot. They last up to ten times longer (10.
900 Singaporean household replaces one 25-watt incandescent light bulb with a 7-watt energy-saving CFL bulb. *Assumption: the light is on for 6 hours a day for 365 days) Energy-saving light bulbs may cost more to purchase initially. Singapore would reduce her energy consumption by 45. Together they will also save up to $66. due to their lower energy use.58 million kg reduction in CO2 emissions. (An average Singaporean household living in a five room flat consumes approximately 450 kWh and spends $108. enough energy to power up 50.• • • • • A small effort in changing a light bulb can translate to a significant amount of energy and monetary savings and helps contribute towards a more sustainable Singapore.145. one can save about $9.17 GW. but they are more affordable in the long run. you will save 0. IKEA Singapore attracted over 7 million visitors in its stores from September 2009 to August 2010.45 on electricity bills from August 2010 to January 2011. . If every of the 1. it will help Singapore reduce her energy consumption by 276 GW in a year* and CO2 emissions by 138 million kg. However. The cost of electricity in Singapore is $0. It would also greatly reduce carbon footprint in Singapore. An IKEA SPARSAM 7-watt energy-saving light bulb costs $3.241 per kWh.5 million in electricity bills. they can save up to $10.190 households for a year*. If every IKEA visitor purchases and switches to an energy-saving CFL bulb.89 million in electricity bills.80 per year in the total average cost of purchasing the light bulbs and electricity.75 more than an incandescent light bulb giving off a similar level of brightness.018kw of energy and 4g of carbon emissions per hour. If you replace a 25-watt incandescent light bulb with a 7-watt energy-saving CFL bulb. with about 22. And together.
IKEA is Planning to Sell Solar Panels and Clean Tech Products August 12. Strategy and Leaders . 2008 by Eugene Tay Filed under Design and Tech.
That’s the only thing we look at. Johan Stenebo. For other big local retailers. In the near future. what are you waiting for? . According to the Cleantech Group. IKEA is able to shift consumer behaviour towards green products through its low prices and quality design. you might even find solar panels and green tech products at IKEA.1 Comment It’s always interesting to visit an IKEA store and discover the wide range of furniture and home solutions. product materials. said that the clean tech products will be similar to other IKEA products: Really low prices. we would never look at anything else. IKEA plans to invest €50 million in clean tech startups over the next five years and develop clean tech products in the following areas: solar panels. alternative light sources. For companies that provide green products in Singapore. remember to shop for solar panels. The inspirational design and low prices of the products is amazing. energy efficiency. we would discard anything else that doesn’t fall into those boundaries The next time you’re at IKEA. and water saving and purification. better watch out for the Swedish giant and get ready. clean and green products for your home. Managing Director of IKEA GreenTech. and they should be of very good quality.
the presentation of our range and the information we provide our customers all contribute to our image. business idea and market positioning statement provide a framework for all IKEA marketing communication worldwide. functional home furnishing products at prices so low that as many people as possible will be able to afford them. The IKEA vision is "To create a better everyday life for the many people." By communicating the content of this framework and encouraging customers to experience the IKEA concept. Together we save money. These are briefly described below. what we say. the price we offer them at. The overall task of IKEA marketing communication is to build the IKEA brand and inspire people to come to the stores." Our market positioning statement is "Your partner in better living. you do yours. ." Our business idea is "To offer a wide range of well designed. What we do. we are building the IKEA brand. the products we offer. The IKEA concept builds on a relationship with the consumer. The brand image is the result of over 50 years work by IKEA coworkers at all levels all over the world. The IKEA brand is the sum total of the emotional and rational values that consumers associate with the IKEA tradesmark and the reputation of our company.IKEA marketing strategy The IKEA vision. Nine key messages are used within the IKEA marketing communication to build this relationship and give an understanding of how we can fulfil our customers needs. We do our part.
we have raised awareness of our brand. let people know we are different to other home furnishing companies and most importantly increased sales. the store is the IKEA retailers primary medium for presenting and communicating the range. our customers benefit from low prices. its low price and the IKEA concept. It is produced in 38 different editions. All other marketing communication is used to amplify the product range. the UK marketing department IKEA advertising in the UK is intended to raise awareness of the IKEA brand and drive traffic to the stores. and internet based communication. 110 million catalogues were circulated last year . radio. Some people love our unique style of retail advertising. Advertising is used to support many different areas of the business including brand awareness. catalogue drops and store openings. in 17 languages for 28 countries. distribution and retail costs. but everyone who sees our advertising has a strong opinion and subsequently it provokes conversation and debate. the IKEA advertising. consumer value and clever solutions. Despite having some of the most controvertial television advertising campaigns in the UK. store themes.three times higher than that of the Bible. some hate it. PR and other types of communication are complements to the IKEA range. brand research . By using inexpensive materials in a novel way and minimising production. The IKEA marketing mix consists of 4 different areas of focus. Other media now being used to an increasing degree include TV. "We do our part" focuses on our commitment to product design. the IKEA product range is our starting point. the IKEA catalogue is the main marketing tool with around 70% of of the annual marketing budget being spent on this alone. with 13 million of these being available in the UK. the IKEA marketing mix IKEA has a long tradition in marketing communication focusing primarily on printed media which has proven its values and success to the company over the years. store and catalogue are used to spearhead the penetration of our target market. The advertising department includes all aspects of advertising and brand communication from television advertising and sponsorship to magazine and radio promotions.click here to go back to main menu the IKEA concept is based on the market positioning statement.
The IKEA Swedish food markets are also in every store and encourage customers to take home a taste of Sweden. The wide range of traditional Swedish foods helps customers understand our Swedish origins and also lives up to our low price promise. baguettes in France. this is produced centrally. as possible. IKEA food services The IKEA restaurants are important in providing our customers a place to eat and relax while shopping. Similarly to the catalogue. and are responsible for the presentation or our product offers using all current range presentation medias and techniques. From the global site it is possible to access all local sites. product news. The main restaurant serves meals based on our Swedish heritage. and tips and ideas for the home. communication and interior design Com-in is a "unique" resource who work actively to secure our competitive advantage through the development of the IKEA retail concept and the store as a media. One of the main tasks of the internet is to display product information and availability which is updated constantly. public relations The primary concern of this function is to protect the IKEA corporate identity but also to communicate our vision. room magazine This is a European IKEA magazine that is available in all stores in Europe.com is the global site where you have an overview of IKEA as a company. There are also bistro areas which sell localised snacks such as. the home furnishing sector and our competitors.To remain at the forefront of a changing market we need as much research on customers. reports and statistics both internal and external are taken into consideration when planning any communication or marketing campaign. special offers and local information. All Com-in specialists are from either an interior design background or visual merchandising. hot dogs in the UK. with traditional dishes such as Gravadlax and meatballs with Lingonberry relish. There are 3 different concepts offering food in IKEA stores in the UK currently. Background information about the company and store information is also crucial. business idea. It contains lifestyle features on IKEA customers and how they live. Each store also has their own space with contact details and directions. and want to come back again and again. events. The Com-in department gives the store inspiration and vitality and works closely with the store sales and logictics teams to ensure our customers always see something new and exciting. but each country has control of a number of pages to communicate their country specific messages.000 IKEA Home Card holders in the UK. Many different areas of market research. It is also mailed out to 150. and pizza in Italy. brand . internet IKEA.
. we are able to communicate with a huge audience through their readers. catalogue distribution and product launches. 2011 Retail giant IKEA is establishing itself in the mobile space via an integrated campaign that not only drives consumers to its locations." fact sheets IKEA increases summer sales via mobile initiative By Rimma Kats July 18. All areas of the IKEA marketing department work together to give consistent messages to our customers and strengthen our brand identity. The overall identity of IKEA is based in Småland. By informing journalists of news and information within IKEA through press releases. All IKEA policies live up to this standard from the products we sell to our internal travel and recruitment procedures. concept and trademarks. our vision.values. but also helps build the company’s email and SMS database. website information. The company is running mobile banner ads within Pandora’s iPhone app. By focusing on communicating the key messages of the IKEA concept. and business idea we can work together to create our vision of " a better everyday life for the many people. Consumers can get offers and discounts and find the nearest location via the ad. historical and thrift are strong characteristics of the region and its people.
Database The company is using the mobile banner ads as a way to increase email and SMS signups.” When consumers tap on the banner. with more than 275 stores in 36 countries. New York. CEO of Usablenet. Via the ad. including 35 in the United States. they are redirected to a mobile landing page where they can save up to 20 percent on a kitchen right now. Consumers also have the option of signing up to get IKEA’s catalog and participate in this month’s poll. emails or text messages from the company. .“As businesses continue to focus resources on mobile advertisements in an effort to drive traffic and attract new customers. consumers can either choose yes or no on whether they would like to get a catalog. This is not IKEA’s first foray into mobile. browse new lower prices. it is essential that the pages consumers are directed to are fully optimized for mobile.” said Nick Taylor. IKEA is one of the largest home furnishings retailers worldwide. The mobile ad also gives users the option to find the nearest store location where they can go and buy the products they want. Consumers can also find their back to college style. share their opinion on this month’s topic and sign up for IKEA text messages and email. Let’s shop The mobile banner ad reads “Find your back-to-school style – see your local IKEA store.
The company is equally well-integrated back up the value chain. who has both a trader's mentality and is at the same time a communityperson. Taylor said. Huge cost-savings.the company is tightly integrates its sales. IKEA's country of origin. which is very frugal and part of the company-culture. manufacturing. 2: Sales & service . and has—since the 90s—been expanding its operations in that direction.In 2008. design . which somewhat surprised me. manufacturing. the company launched a mobile loyalty program to build a database of consumers interested in receiving discounts from the home furnishings retailer. . together with what I've written before. whose restrictive tax policies actually resulted in pushing the business to become a global company. The text-to-enter loyalty program is a means for IKEA to start a dialogue with interested consumers. The more rational. and more flexibility in manufacturing.and service-operations with customers. Some problems retaining top-employees as wages are not competitive. It's also in line with the business's rapid global expansion and its drive to push down costs. “If businesses direct users to a non-optimized site after clicking on a mobile ad. This both saves costs and minimises international risks. and also transmitted to the supply side and to customers. Some costsavings by introducing savings up the logistics-chain. You can draw your own conclusions from that. BCode is powering the texted discounts (see story). Final Take 1: Stores : . IKEA's cost-philosophy. 4: Management structure . the "easier" (a relative term) to replicate. Things that stuck out from the book included: • • • • Ingvar Kamprad. it will lead to a poor user experience and can alienate many potential customers. can be explained by the scientific way in which IKEA's operations has been built up.The way the company expands horizontally. the latter taking over 80% of the work (and loving it). with suppliers. and design. the founder.non-public virtual entity that licenses the IKEA brand and is able to offset international tax-differences by being located in Belgium/the Netherlands and changing the terms of licensing-agreement as needed. is through a tightly controlled franchising system. 3: Supply. also benefiting customers.” Mr. Its franchising-system. Sweden.
” . The IKEA Concept relies on customers to choose. transport and assemble IKEA products themselves. That is the idea behind: “You do your part. Its vertical integration with suppliers and customers. functional home furnishing products. 2010 Susan Lyle Leave a comment Go to comments THE ACADEMY OF BUSINESS STRATEGY BUSINESS PROCESS IMPROVEMENT (FINANCE) BLOG IKEA executes strategy AUTHOR Maxine Attong (CBS) BSc CMA I visited the IKEA store in New Jersey. We do our part. as well as introduce higher cost-savings than its competition. the commitment to price reduction is evidenced in the physical layout of the store and the concept of an independent shopper.” At the store. enabling it to quickly respond to new trends and problems. IKEA executes strategy July 23. last Saturday and witnessed a company that is demonstrably executing its vision. which makes it less visible and (relatively) less accountable to the public. Together we save money. The IKEA vision is to “create a better everyday life for people. collect. USA. at prices so low that as many people as possible can afford them. This company has asked and answered the question “How can we reduce the cost of servicing clients at the retail outlet without compromising on the quality of our product and service?” As explained on the IKEA website “IKEA customers are actively involved in the shopping experience.• • It's a private company. We make this possible by offering a wide range of well designed. Customer involvement contributes to IKEA low prices.
Very often Business Process Improvement Projects struggle with making the Process Improvement results tangible and part of the daily fabric of . There are no “Do not touch” warnings or “Break and pay” threats. so that the shopper can note the item description. There are white items. Each item is tagged.This company has reduced its retail cost by adequately equipping the shopper with the relevant tools and information to make him/ her a complicit and critical element of its cost savings strategy. The IKEA catalog and warehouse attendants also assist with the location of items. fragile items. bedroom. a small diagram and colours identified. with the identical description. The shopper is viewed as having a vested interest in keeping the prices low. who chooses to self check. its serial and stock number. bathroom etc. IKEA executes its Vision of having “prices so low” by adopting cost reduction strategies that are a tangible part of the shopping experience. (At the in-house IKEA eatery. kitchen. Computers can be used to locate items that the shopper may not have properly written down. operates an automated machine that scans the items. in the display room. and accepts cash or debit/credit card payment. The shopper selects his/ her products from the well lit and accurately labeled warehouse. The shopper. Each item in the warehouse is labeled as tagged. The shopper packs his/her purchases and exits the building. Sales associates are stationed throughout the store ready to serve. An entire room can be literally purchased. The showroom comprises different rooms of a typical house – living room. delicate items. Pencils and shopping lists are strategically located throughout the store with concise and clear instructions on how to complete and use the list. Each beautifully and completely decorated room illustrates how the products can be used to create different settings. The store is a treasure trove of a wide range of items at a wide range of prices. small items on display. complete with accessories and decorations. signs remind the shopper of the contribution they make to low food prices when they clear their tables). the bin and aisle numbers (warehouse location) or the general areas at which it is housed. and be reassembled and recreated at the shopper’s home.
It is obvious that IKEA is not done yet. Teams have great ideas and wonderful plans of how to improve service levels or curtail cost and better satisfy the customer. Process Plant . Trinidad Insurance Brokers. IKEA’s alignment of strategies undoubtedly took years and will continue to evolve as the company keeps ahead of competitors and changing environments. Just think about it. It is the same with the Business Process Improvement.the business lives. is a Certified Management Accountant at the Society of Management Accountants in Ontario and is a Certified Quality Manager at the American Society of Quality. Strategy execution and delivery is not an overnight process since the ultimate vision may be limited by the existing technology and the state of the organization. Her clients or employers have included Guardian Life Co. A company has to keep working towards its strategy on a daily basis. Readymix Ltd. It may take years for the total Vision for the improved process to be implemented but the Team needs to stick to the Vision and keep incorporating ideas that will make it tangible. five years ago those self check out machines were probably prototypes. I have a good feeling that when I visit that store next year I will be able to identify several new ways in which the customer is engaged as an active part of the cost reduction strategy. The point is that the execution of strategy is a daily struggle. financial services. She has achieved a BSc in Accounting at the University of West Indies Cahill. IKEA has incorporated the use of them as a way of furthering its cost reduction strategies. NAMDEVCO. Execution is difficult and it is not an immediate process. insurance and credit unions industries. She has been employed as a Certified Management Accountant and Financial Consultant for 14 years and has experience within the oil and gas. Ltd. Now that the machines work. but very often the intention gets lost in translation. National Union of Government and Federated Workers. First National Credit Union. For the strategy to work it must be made tangible to the stakeholders and be aligned to the Vision of the company. ABOUT THE AUTHOR Maxine Attong (CBS) BSc CMA is an approved Certified Business Specialist (CBS) with the Academy of Business Strategy and her specialist subject is business process improvement (finance).
typepad. She has geographical working experience in Trinidad. Carilec Grenada. business process improvement and accounting and general management. please contact the Academy of Business Strategy by forwarding an email. the thesis intends to define the change management procedures that the organizations involved in e-business are using. it is a concept that is vulnerable to changes as it is associated with technology. Her service skills incorporate facilitation and meeting management. which is developing rapidly day by day.cdeclips. A semi-structured interview method was chosen for the collection of qualitative data with the aim of acquiring in-depth information from our respondents. Categories: Maxine Attong (CBS) Tags: IKEA executes strategy http://ivythesis.php?t=27564 http://www.com/essay. and 2) if there are any compo-nent(s) of e-business model(s) that has more importance than the others for the competi-tiveness of the company.com/2008/04/competitive-strategies.echeat. or alternatively visit Maxine’s CBS blog. NIPDEC.com/term_paper_topics/2009/02/ikeas-transformation-process. We conducted the research through a combination of qualitative and quantitative methods.pdf http://www.wordpress. . She speaks English. and to compare the components of the e-business models in order to find out if there is any component that is more important than the others for the competitiveness of the organization.html E-Business Modeling : A Case Study with IKEA ABSTRACT: E-business modeling is a concept that has several components and can be designed based on different combinations of them. Guyana Sugar Corporation. By con-ducting this research on 1) how the companies are managing changes in a competitive envi-ronment by means of adjusting their e-business models. St Maarten and Guyana.html http://realresults.com/en/business/Ikea_aims_for_15_stores_in_China_by_2015/fullstory_ 67815. HOPE. Furthermore.Services Limited.net/sanil/ikea-global-success-strategy http://www. Ministry of Finance Trinidad and the Arthur Lok Jack School of Business. St Lucia. To contact Maxine Attong. Ministry of Education.files.slideshare.
ristoranti e bar. Each component has three elements. Furthermore. Gli hot spot azzurri attivano pop-up. which we gathered via questionnaire. oppure a “portrait”. this thesis aims to compare the degree of importance of each component via statistical measures.On the other hand. provided us with the opportunity to make statistical inferences about the data.diva-portal. According to our report. there are four components of e-business models. and early commitment of the stakeholders were found to be important issues for the change management in an e-business environment. quan-titative data. by combining the statistical inferences with the qualitative data and theories related to the components of the e-business model. negozi . In comparing those theories with the answers gathered from the respondents. L’applicazione per iPhone e iPad mette a disposizione degli utenti diverse funzionalità: -Zoom.jsf?pid=diva2:4169 Developer's Notes for: IKEA BUSINESS Developer's Notes IKEA Business Brochure – GRATIS per iPhone e iPad.Bookmark e post it.Web. organizations could successfully design their ebusiness models and experience competitive advantage. Besides. a “rivista” o “landscape”: posizionando orizzontalmente il proprio dispositivo si ha una visuale delle pagine in sequenza. applying changes without modifying the basic strategy of the organization. http://hj. per visionare i dettagli della brochure in alta definizione. and successfully manage changes that could take place in their ebusiness environment. we found out that being proactive towards the changes. and financials. this report uses several change management models and procedures from books and articles from the library and the Internet. By considering the conclusion that has been derived. the utilization of external parties in the areas where organizations lack expertise concerning change was found to be important for a successful change in an ebusiness environment. . When we reviewed the research questions. orientando il proprio dispositivo in posizione verticale per visionare le pagine singolarmente. stress-ing on the training and involvement of the users. product innova-tion. By asking the respondents to state the degree of importance of each element in each component. -Inviare tramite e-mail contenuti specifici della brochure . we observed that the purpose has been fulfilled and the research questions have been properly answered. Additionally. communication with users and stake-holders. che permettono di salvare le pagine preferite e aggiungere le proprie note -Doppia modalità di visualizzazione. financials component is found to be more important than the other components for the competitiveness of the organization. infrastructure management. video normali. animazioni. accesso diretto alle novità riguardanti i prodotti IKEA . in 3D e testi a comparsa con approfondimenti. customer relationship.org/smash/record. bed & breakfast. IKEA Business Brochure: 135 pagine interattive con idee e soluzioni per uffici.
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