Ikea
Economical factors
Created in 1943 by Ingvar Kamprad Turn over : 21,5 billion €uros (+1,4% in 2008) 16,3% market share in France Staff : 128.000 persons 267 stores in 25 countries Visitors in stores: 590 millions 561 millions/year visitors on the website Ikea.fr
Graphs
PESTEL IKEA
Economical factors
Better purchasing power of emerging countries Pricing different according to the country Low price strategy in general
Technological & Legal
Technological factors Creation and innovation of new products Better stock management Legal factors Strengthening of international importation regulation Norms
Environmental & Social
Environmental factors Create products with a minimum of impact on the environment IWAY Partnerships with many environmental organisations Social factors Decent work condition to its suppliers IWAY Partneships with many social organisations
Structure & Organisation IKEA
Structure and organization IKEA
In charge of the development of the assortment of IKEA (10000 products) IKEA has 43 offices of purchase distributed in 33 countries Suppliers distribute in 55 countries
Structure and organization Swedwood
The industrial group of IKEA is specialized in the production of furniture and wooden components 32 factories in 9 countries Swedwood is specialized first and foremost in the sectors where IKEA has difficulties The IKEA’s Group is supported by 9 departments
The watchword at IKEA
Decentralization
To have economies of scale To maintain low prices
But certain fields of expertise keys are centralized (IKEA IT, IKEA Food Services…)
Almost 300 stores in more than 35 countries
The concept ?
« IKEA offers a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them »
IKEA corporate web page
Standardised approach
To keep the prices low and attractive To create one single image everywhere The target group ? « Many people »
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Created in 1943 by Ingvar Kamprad Turn over : 21,5 billion €uros (+1,4% in 2008) 16,3% market share in France Staff : 128.000 persons 267 stores in 25 countries Visitors in stores: 590 millions 561 millions/year visitors on the website Ikea.fr
Graphs
PESTEL IKEA
Economical factors
Better purchasing power of emerging countries Pricing different according to the country Low price strategy in general
Technological & Legal
Technological factors Creation and innovation of new products Better stock management Legal factors Strengthening of international importation regulation Norms
Environmental & Social
Environmental factors Create products with a minimum of impact on the environment IWAY Partnerships with many environmental organisations Social factors Decent work condition to its suppliers IWAY Partneships with many social organisations
Structure & Organisation IKEA
Structure and organization IKEA
In charge of the development of the assortment of IKEA (10000 products) IKEA has 43 offices of purchase distributed in 33 countries Suppliers distribute in 55 countries
Structure and organization Swedwood
The industrial group of IKEA is specialized in the production of furniture and wooden components 32 factories in 9 countries Swedwood is specialized first and foremost in the sectors where IKEA has difficulties The IKEA’s Group is supported by 9 departments
The watchword at IKEA
Decentralization
To have economies of scale To maintain low prices
But certain fields of expertise keys are centralized (IKEA IT, IKEA Food Services…)
Almost 300 stores in more than 35 countries
The concept ?
« IKEA offers a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them »
IKEA corporate web page
Standardised approach
To keep the prices low and attractive To create one single image everywhere The target group ? « Many people »
6