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Founded in 1943 by Ingvar Kamprad, IKEA generated the sales of 23.1 billion Euros in 2010 through its operations in more than 38 different countries with 27 distribution centres. The IKEA Group has 280 stores in 26 countries and the remaining of the stores are run by franchisees (Berger, 2011).
The business concept of IKEA involves selling high volume of mostly furniture products in low prices. Moreover, “with an aim of lowering prices across its entire offering by an average of 2% to 3% each year, its signature feature is the flat packed product that customers assemble at home, thus reducing transportation costs”
The vision of the company reflects this strategy in an effective manner. “The IKEA vision is to create a better everyday life for many people. We make this possible by 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”
As one of the leading retailers in a global scale IKEA is engaged in systematic environmental monitoring and analysis which serves to be an effective source of information for decision-making. Internal benchmarking is one of the main methods of environmental monitoring and analysis engaged in by IKEA. Benchmarking is “method of improving business performance by learning from other companies how to do things better in order to be the ‘best in the class’.
The Internal benchmarking practice engaged in by IKEA involves comparing different divisions and subsidiaries of the company and thus establishing the best practice and aspiring to it for the remaining divisions and subsidiaries of the company.
Moreover, IKEA is engaged in extensive market research both in global and local levels that is conducted by marketers employed by the company, as well as, independent market research companies.
IKEA Financial Analysis
During the financial year of 2009 15 new IKEA stores have been opened and the total revenue of the group has grown to
The business concept of IKEA involves selling high volume of mostly furniture products in low prices. Moreover, “with an aim of lowering prices across its entire offering by an average of 2% to 3% each year, its signature feature is the flat packed product that customers assemble at home, thus reducing transportation costs”
The vision of the company reflects this strategy in an effective manner. “The IKEA vision is to create a better everyday life for many people. We make this possible by 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”
As one of the leading retailers in a global scale IKEA is engaged in systematic environmental monitoring and analysis which serves to be an effective source of information for decision-making. Internal benchmarking is one of the main methods of environmental monitoring and analysis engaged in by IKEA. Benchmarking is “method of improving business performance by learning from other companies how to do things better in order to be the ‘best in the class’.
The Internal benchmarking practice engaged in by IKEA involves comparing different divisions and subsidiaries of the company and thus establishing the best practice and aspiring to it for the remaining divisions and subsidiaries of the company.
Moreover, IKEA is engaged in extensive market research both in global and local levels that is conducted by marketers employed by the company, as well as, independent market research companies.
IKEA Financial Analysis
During the financial year of 2009 15 new IKEA stores have been opened and the total revenue of the group has grown to
References: * Berger, A, 2011, Operations Management: IKEA, Grin Verla * Inter IKEA Systems B.V., 2011, Available at: http://franchisor.ikea.com, Accessed July 1, 2011 * Janakiraman, B & Gopal, RK, 2007, Total Quality Management: Texts and Cases, John Wiley & Sons * Kishel, GF & Kishel, PG, 2005, How to Start, Run, and Stay in Business: The Nuts-and-Bolts Guide to Turning Your Business Dream Into a Reality, 4th edition, John Wiley & Sons * Martins, T, 2010, Ingvar Kamprad Quotes: Business Leadership Advice from IKEA’s Founder, Available at: http://www.strategicbusinessteam.com/famous-small-business-quotes/famous-business-and-leadership-quotes-from-ingvar-kamprad-founder-of-ikea/ Accessed July 10, 2011 * Mullins, LJ, 2005, Management and Organisational Behaviour, Prentice Hall * Pride, WM & Ferrell, OC, 2008, Foundations of Marketing, Cengage Learning * Profile: IKEA, 2011, Innovation Leaders, Available at: http://fp05-527.web.dircon.net/ikea_company_profile.htmL Accessed, July 1, 2011 * Rothacher, A, 2004, Corporate Cultures and Global Brands, World Scientific * Welcome Inside, 2010, IKEA Group, Available at: http://www.ikea.com/ms/en_CN/about_ikea/press/press_releases/Welcome_inside_2010.pdf Accessed July 10, 2011