Preview

Ikea Chengdu

Powerful Essays
Open Document
Open Document
4597 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ikea Chengdu
Guide to Invest in the Furniture Industry of Chengdu

August 2008

·23·

·24·

CONTENTS
1. THE INDUSTRY STATUS QUO………………………………1 1.1 THE INDUSTRY PROFILE ……………………………1 1.1.1 The current industry profile ………………………1 1.1.2 The industry volume and growth……………………1 1.2 THE INDUSTRY CHAIN…………………………………2 1.3 MARKET OVERVIEW……………………………………4 2. INVESTMENT ENVIRONMENT………………………………5 2.1 LABOR RESOURCE………………………………………5 2.2 INFRASTRUCTURE………………………………………6 2.3 LOGISTICS ………………………………………………7 2.3.1 Railway transportation……………………………7 2.3.2 Highway transporation……………………………9 2.3.3 Waterway transportation……………………………10 2.3.4 Customs clearance procedures for waterway transportation………………………………………11 2.4 ENVIRONMENTAL REQUIRMENTS……………………11 2.4.1 Environmental quality standards……………………11 2.4.2 Wastes discharge standards…………………………12 3. INDUSTRY GROWTH PLANNING…………………………13

·25·

3.1 INDUSTRY PLANNING…………………………………13 3.1.1 Planning for the manufacturing of furniture and asssociated products………………………………14 3.1.2 Planning for the furniture commerce and distribution…………………………………………16 3.2 INDUSTRY POSITIONING:1 District by 1 Industry……16 3.2.1 About the furniture industry hosting parks/zones…18 4. IMPACT OF WENCHUAN EARTHQUAKE ON THE INDUSTRY GROWTH OF cHENGDU………………………20 4.1 IMPACT OF WENCHUAN EARTHQUAKE ON CHENGDU………………………………………………20 4.2 IMPACT OF WENCHUAN EARTHQUAKE ON THE FURNITURE INDUSTRY OF CHENGDU………………21

·26·

1. The industry status quo
1.1 The industry profile 1.1.1 The current industry profile Based on decades of growth, the local furniture industry of Chengdu has become one of the 5 leading in China in terms of manufacturing, and one of the 4 leading in terms of distribution. At present, there are over 3 000 furniture manufacturing and associated businesses employing over 500 000 people. And with production and sales accounting for over 80% of the whole province of Sichuan, the local industry is the largest in China in the production of panel-made/style

You May Also Find These Documents Helpful

  • Powerful Essays

    As was mentioned in the issue identification part, furniture industry is going through the shift in production locations, stressing its…

    • 2809 Words
    • 12 Pages
    Powerful Essays
  • Powerful Essays

    1. The household wood furniture industry is a very cyclical and tough business to get into. The industry is broken down into 3 categories: upholstered, wood, and other furniture. The other category includes “ready to assemble furniture and causal furniture”. Many of the wood manufactures today are very focused on quality of the product that they sell to retailers. Manufactures provide brochures with the quality of the material that they make their furniture with and how each piece is assembled, so they can better sell to retailers.…

    • 1164 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    • Global commerce trade is primarly dependent on trans-ocean shipping; roughly 90% of general cargo is shipped via container Based on the container shipping value chain, there are several segments to expand and integrate the business and enter the market. This would provide benefit of business diversification hence decreasing risks According to the volume of growth of shipping lanes (Exhibit 6), every lane has steadily increased during the last years and is expected to grow further in the future…

    • 975 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    For IKEA the step into the Chinese market was a big step, maybe as big at the first…

    • 6997 Words
    • 27 Pages
    Good Essays
  • Satisfactory Essays

    Ikea China Swot

    • 332 Words
    • 2 Pages

    The booming furniture industry and dramatically increased domestic consumption give foreign firms like IKEA a great opportunity in China. Moreover, the less developed market also provides mature companies with bright prospects. This is because the entry barrier will be lower and firm’s mature strategies can be well operated.…

    • 332 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Forefront Manufacturing

    • 4107 Words
    • 17 Pages

    4.How would you describe the operating environment of the industry, company, customers, decision makers, and other aspects of the general operating environment? So what?In conformity with China’s National Bureau of Statistics the GDP rise by 9.9% from 2003 to 2004 and the construction industry increased by 20% in the same period. Please see Appendix No.1So What?This indicates high growth opportunities for Forefront Manufacturing. This is also a main strength for Forefront Manufacturing, their product being always in demand as “other features and fixtures in a building may vary – the floors may be wood or marble or carpet, for example…But every single building in the world need doors.”As described in the case the door manufacturing in China is characterized by complications such as relationship issues, resources…

    • 4107 Words
    • 17 Pages
    Good Essays
  • Powerful Essays

    Hrm Ikea China

    • 4135 Words
    • 17 Pages

    “It is instrumental (…) to harness the productive potential of their employees in order to achieve superior performance”…

    • 4135 Words
    • 17 Pages
    Powerful Essays
  • Good Essays

    Chinese Demographics

    • 1118 Words
    • 5 Pages

    Political and legal environment in China make it very volatile for business outside of the country. China is undergoing massive urbanisation with millions (160m) of people moving from rural to urban environments. However the mass industrialisation comes with a lot of pollution costs. The urbanisation is pushing up consumption per person but also increasing income per person. Population in China is suspected to reach 1 billion by 2030. The scale and pace of China's urbanization continues at an unprecedented rate. If current trends hold, China's urban population will hit the one billion mark by 2030. In 20 years, China's cities will have added 350 million people more than the entire population of the United States today. By 2025, China will have 221 cities with one million–plus inhabitants—compared with 35 cities of this size in Europe today—and 23 cities with more than five million. For companies in China and around the world, the scale of China’s urbanization promises substantial new markets and investment opportunities. Yet the expansion of China's cities will represent a huge challenge for local and national leaders. Of the slightly more than 350 million people that China will add to its urban population by 2025, more than 240 million will be migrants. This growth will imply major pressure points for many cities including the challenge of managing these expanding populations, securing sufficient public funding for the provision of social services, and dealing with demand and supply pressures on land, energy, water, and the environment.…

    • 1118 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Because IKEA is not a public company, I cannot get too much data. I browsed the official website of IKEA to get much information about the introduction of IKEA’ corporate culture, strategies, copartner, history and the data of IKEA financial and work group. I find some English and Chinese books, thesis and reports try to find more data and more good ideas of Chinese scholars. Visit and observe the IKEA store and note my questions. I tried to have an interview with IKEA store in china, but failed. Fortunately, I got an interview with Hans Karlsson which is the logics manager of IKEA store in Gavle. He explained the competitive strategy of logistics, the competitive advantage about IKEA and the next step IKEA may do in china. Try to analysis the different culture and other problem that IKEA have to face. Analyze all the data and the idea I have got and use the theory of Michael Porter to finish this thesis. IKEA should have many innovations to adapt to the China market. “At IKEA our vision is to create a better everyday life for the many people. Our business idea supports this…

    • 9726 Words
    • 39 Pages
    Powerful Essays
  • Powerful Essays

    Ikeain China

    • 6138 Words
    • 25 Pages

    In mid-2003, the president of IKEA China, Ian Duffy, and some executives were discussing the market strategies of IKEA China in their Beijing office. After a review of IKEA China’s market development, the executives brainstormed about possible solutions for the difficulties experienced in the Chinese market. In the end, Duffy announced a plan to open another store in Beijing, one in Guangzhou and possibly another one in a southwestern city, Chengdu, over the next five years. More significantly, the board unveiled a long-term plan to open ten more stores in mid-sized cities, such as Dalian and Qingdao, by the end of 2010. This plan would require a US$600 million investment. IKEA’s expansion plans underscored its confidence in China. However, over the past eight years, none of IKEA’s retail stores in China turned a profit, making them the only loss-making stores in the entire IKEA group. Although IKEA strived to implement its differentiation and cost leadership strategies that had brought tremendous success in the market worldwide, the company’s performance in China had not progressed much yet. Could IKEA adopt its usual strategies and repeat its market success in this distinctive developing country? Were IKEA’s furnishing and decoration concepts and retail strategies appropriate for the Chinese market? Could IKEA’s business strategies eventually enhance its competitive advantage in China?…

    • 6138 Words
    • 25 Pages
    Powerful Essays
  • Satisfactory Essays

    Ikea

    • 7208 Words
    • 25 Pages

    Career MBA Program BUS 575 Operation management 05/21/2012 IKEA Supply Chain Analysis Submitted in partial fulfillment of the requirements for the degree of Master of Business Administration Yanjing Ge Youyou Zhang Yi Xie Pengfei Zhao College of Business and Public Management Catalogue Abstract ...3 Introduction.3-4 IKEA Supply Chain Strategy..4-6 Supply Chain Management of IKEA..6-9 3.1. Supplier Management..6-7 3.2. Store Design.7-8 3.3. Warehouse Management..8-9 4. IKEA Supply Chain9-13 4.1. IKEA Supply Chain System.9-11 4.2. IKEA Supply Chain Planning...11-13 4.2.1. Planning concept overview..11-12 4.2.2. Sales planning..12-13 4.2.3. Demand planning.13 5. Problems.....14-15 5.1. Lack of Central Coordination.14 5.2. Lack of Accurate Sale Forecasts.14-15 5.3. Inventory Costs are too high...15 6. Recommendations.15-16 7. References.17-18 Abstract This article is an analysis of the IKEAs supply chain. IKEAs supply chain is globally with sales in more than 250 own stores in 24 countries and 32 external franchisees in 16 countries. It has special supplier management, store design, and warehouse management. IKEA Supply Chain system includes IOS, TSO, material and suppliers, DC and IKEA store. IKEA global planning has seven processes. Sale planning and demand planning are in this article. IKEAs supply chain was operated really successful, however, it still exist some problems, like lack of central coordination, inaccurate sale forecasts, and high inventory costs. In the end, this article will provide some recommendations to solve those problems. Introduction IKEA, founded in 1943, is one of the best home furniture company in the world whose, and its vision is To provide better life for everyone. IKEA provides modern and fashionable low cost furniture for over 38 countries with 301 stores. It is the largest furniture retail chain in the world and boasts a range of 12000 products, including home furniture, accessories and…

    • 7208 Words
    • 25 Pages
    Satisfactory Essays
  • Powerful Essays

    As proposed by the Government decades ago, there are four ‘pillar’ industries in Hong Kong, namely, financial services, trading and logistics, tourism and producer and professional services. They account for about 60% of GDP and nearly half of the total workforce, in which construction industry is counted in the producer and professional services. In the 21st century, the Government wants to look forward and follow the trend of technological and advanced world, they proposed another six new ‘pillar’ industries, concerning testing and certification, medical services, innovation technology, culture and creative industries, environmental industry and education services, in which construction industry is not counted in any ‘pillar’ industry and no longer treated as important by the Government.…

    • 1426 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    improved. At present, the top 50 manufacturers in this industry only take about 50% of…

    • 427 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Hong Kong industries and facilities were moved to mainland on 1990s. It makes Hong Kong lost the aim focus on engineering industry. According to large number of workers and low production cost advantages in China. Besides Hong Kong, China also attracts another country and develops their industry. It makes china industry growth up fast.…

    • 969 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    ikea

    • 529 Words
    • 3 Pages

    For Wal-Mart customers, it is divided into three main segments: “value-price shoppers” (New Venture Lab, 2012). (It means customers prefer to low price). “Brand aspirations” (New Venture Lab, 2012). (People who are infatuated with goods have the same name with brands), and “price-sensitive affluent” (New Venture Lab, 2012). (Customers who like deals). This…

    • 529 Words
    • 3 Pages
    Satisfactory Essays