IKEA Case

Study
Presentation
 TABLE OF CONTENTS

Introduction Competitive Strategy

1 About IKEA
2 Competitors, Resources,
Objectives and Feedback
Decisions

Supply Chain of Customer

4 IKEA
Supply chain processes and
its operations
3 Fulfillment
Creating value for Customer
through Supply chain

SWOT Analysis Conclusion

5 SWOT, Strategies and Order
Fulfillment
6 Summarize and conclude the
entire case
 1

INTRODUCTION
 ABOUT IKEA
● IKEA is a Swedish-origin Dutch-headquartered company
● Headquarters: Delft, Netherlands
● Founded in Sweden in 1943
● Industry type: Retail
● Revenue: € 41.3 billion

● Case Study: the case intends to analyze supply chain management and
competitive strategy applicable to IKEA through discussion of IKEA’s
strategic business purpose.
 2

COMPETITIVE STRATEGY
Competitors Objectives

Feedback
Resources Decisions
 COMPETITORS

RETAIL STORES ONLINE FURNITURE

The One
STORES

Amazon
Home Depot

Alibaba Group
Pottery Barn
 RESOURCES
Training to
Employees
Intense training to ensure
Industry Competent
quality is maintained
Production Professional
Units Employed to ensures
43 industry production that resources are
units in 11 countries used efficiently

Trading Offices
& Distribution Partners &
Centers Franchisees
27 trading service offices Directed to
in 23 countries, 33 conform to a set of
distribution centres and 15 international
Customer distribution established
centres in 17 countries
standards
 OBJECTIVES

Increase Development of
Customer Sustainable
Attraction Stakeholder
Relationships
High Efficiency in
Resource Accomplishing
Management & the Quarterly and
Service Providing Annual Financial
Goals
High Quality
Products & Improving the
Operations Brand Image
 FEEDBACK DECISIONS

Customer centric strategy entails

obtaining feedback from customers Customers
continuously

Obtain perceptions to identify the

areas that for improvement in R&D
operations

Adapt to dynamic market External

environments by implementing
innovative measures Stakeholders
Ensure employee satisfaction and
fulfil gaps in processes within the Employees
company
 3

SUPPLY CHAIN OF IKEA

IKEA’S GLOBAL SUPPLY CHAIN PLANNING PROCESS
 4

CUSTOMER FULFILMENT
 CREATING VALUE FOR CUSTOMERS THROUGH THE SUPPLY
CHAIN

Easy Services Wide Range &

Services that help the Sections
customers to easily Stores are designed to
identify, purchase, enable customers to easily
transport, and use the browse the products & are
products placed in different sections

Immense Established
Experience Facilities
Ensuring customer satisfaction Parking, food court,
through immense convince and supervised children’s play
value during the overall area, the mini cinema, etc.
shopping experience to add value
 5

SWOT ANALYSIS
Order
Fulfillment

SWOT
 SWOT ANALYSIS IN IKEA’S SCM STRATEGY

STRENGTH OPPORTUNITIE
WEAKNESS THREATS
• Large and diverse product
S
portfolio.
• International operations. • Annual price reducing • Expand operations in the
• Globally recognized brand strategy impacting existing markets.
• Ability to generate high profitability. • Emerging markets in • High level of competition
levels of customer • Differences in quality Asia and South America in the global markets.
satisfaction. standards in different could be tapped into. • Growth in competitive
• Continuous innovation markets. • Expand the use of online substitutes.
• Strategies of low wastage, • Customization of markets. • Global economic
low cost, minimal products is low – due to • Enhance the presence in downturns.
environment pollution, and standardization of the food industry. • Increased regulatory
attractive pricing. • Focus on entering new
products. barriers in different
• Highly integrated supply
• The low cost strategy industries which markets.
chain.
• Long term relationships could affect product competent the current
with suppliers and quality in the long term. product portfolio.
partners.
 ORDER FULFILLMENT PROCESS BY IKEA

PLAN ENABLE

SOURCE MAKE DELIVER RETURN

 6

CONCLUSION
CONCLUSION

Item 1 Wide range & quality products & operations

Item 2 Strong brand image & global presence

Efficient financial management, customer-

Item 3 centric policies, innovation

Strong relationships with partners, suppliers &

Item 4 stakeholders

Prudent policies in SCM process leads to enhance

Item 5 competitive capabilities & derive financial benefits

Augments its position in the market as well as

Item 6 achieving its organizational objectives
THANK YOU!