International Supply Chain Management
INTERNATIONAL SUPPLY CHAIN MANAGEMENT – BSB20123-7 Written Examination Stimulus Material Case Study – IKEA
About IKEA Since its 1943 founding in Sweden, IKEA has offered home furnishings and accessories of good design and function at low prices so the majority of the people can afford them. IKEA’s vision is to: “Create a better everyday life for the many people” Its business idea is "To offer 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" The IKEA concept is based on their market positioning statement “Your partner in better living. We do our part, you do yours. Together we save money” and focuses on a commitment to product design, consumer value and clever solutions. By using inexpensive materials in a novel way and minimising production, distribution and retail costs, their customers benefit from low prices. IKEA has more than 590 million visitors per year to its stores all over the world. In addition to the visitors in the stores, some 450 million visitors are tracked entering the IKEA website. IKEA’s main marketing channel is its catalogue that is distributed world-wide as 191 million copies (in 56 different editions and 27 different languages) displaying some of IKEA’s 9,500 different products. Sales for the IKEA Group for the financial year 2009 increased by 1.4 per cent to a total of 21.5 billion Euros. At the end of the 2009 financial year, there were 267 IKEA Group stores in 25 countries stocking everything for home furnishing under one roof. In 2007 the European market constituted 82% of sales, followed by North America with 15% and Asia/Australia with 3%. The IKEA Group has 123,000 co-workers spread across functions such as purchasing, distribution, whole-sale, range, retail, support functions and the Swedwood Group (see below for further details).
Today IKEA’s product range consists of 9,500 home furnishing articles, designed to be functional and good
About IKEA Since its 1943 founding in Sweden, IKEA has offered home furnishings and accessories of good design and function at low prices so the majority of the people can afford them. IKEA’s vision is to: “Create a better everyday life for the many people” Its business idea is "To offer 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" The IKEA concept is based on their market positioning statement “Your partner in better living. We do our part, you do yours. Together we save money” and focuses on a commitment to product design, consumer value and clever solutions. By using inexpensive materials in a novel way and minimising production, distribution and retail costs, their customers benefit from low prices. IKEA has more than 590 million visitors per year to its stores all over the world. In addition to the visitors in the stores, some 450 million visitors are tracked entering the IKEA website. IKEA’s main marketing channel is its catalogue that is distributed world-wide as 191 million copies (in 56 different editions and 27 different languages) displaying some of IKEA’s 9,500 different products. Sales for the IKEA Group for the financial year 2009 increased by 1.4 per cent to a total of 21.5 billion Euros. At the end of the 2009 financial year, there were 267 IKEA Group stores in 25 countries stocking everything for home furnishing under one roof. In 2007 the European market constituted 82% of sales, followed by North America with 15% and Asia/Australia with 3%. The IKEA Group has 123,000 co-workers spread across functions such as purchasing, distribution, whole-sale, range, retail, support functions and the Swedwood Group (see below for further details).
Today IKEA’s product range consists of 9,500 home furnishing articles, designed to be functional and good