IKEA Group Report
- Published: August 2022
- 14443 Words
- 56 Pages
IKEA Group owned by Stichting INGKA Foundation is the largest furniture and home appliances manufacturer and retailer in the world. Founded almost eight decades ago in Småland, southern Sweden by Ingvar Kamprad, today IKEA Group has 11 franchisees operating in more than 500 locations in 63 countries (Annual Report, FY21).
By the end of FY21 IKEA employed 225000 people worldwide, an increase of 8000 people compared to the previous year. The world’s largest furniture retailer offers nearly 12000 products and develops approximately 2000 new products each year. In FY21 the company generated total operated income of EUR 25.6 billion, an increase of 8.5% compared to the previous year. Net profit for the year amounted to EUR 1.4 billion (Annual Report, FY21).
IKEA’s vision is “to create a better everyday life for the many people” and the company follows an extreme cost leadership business strategy along with new product development strategy to realize this vision. International market expansion strategy also represents an important element of IKEA business strategy. Leadership style exercised to manage the home improvement and furnishing chain can be branded as leading by example, as set by the late founder of the business Ingvar Kamprad. Furthermore, the company has integrated the principles of frugality and intangible employee motivation into its leadership practices.
The Swedish furniture chain has devised a unique and complicated organizational structure designed to pay minimum taxes. IKEA possesses a number of noteworthy strengths such as market leadership, ownership and efficient application of democratic design concept and solid financial position of the business. At the same time, the global furniture retailer has serious weaknesses as well. These include weak presence in Asia, difficulty to sustain the competitive advantage and the lack of flexibility of the business due to its large size.
IKEA Group Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on IKEA. Moreover, the report contains analyses of IKEA’s business strategy, leadership and organizational structure and ecosystem. The report also analysis marketing strategy, ecosystem and discusses the issues of corporate social responsibility.
1. Executive Summary
2. Business Strategy
3. Leadership
4. Organisational Structure
5. Organizational Culture
6. IKEA and Ansoff Matrix
7. SWOT Analysis
7.1 Strengths
7.2 Weaknesses
7.3 Opportunities
7.4 Threats
8. PESTEL Analysis
8.1 Political Factors
8.2 Economic Factors
8.3 Social Factors
8.4 Technological Factors
8.5 Environmental Factors
8.6 Legal Factors
9. Marketing Strategy
9.1 7Ps of Marketing
9.2 Segmentation, Targeting & Positioning
9.3 Marketing Communication Mix
9.3.1 Print and Media Advertising
9.3.2 Sales Promotions
9.3.3 Events & Experiences
9.3.4 Public Relations
9.3.5 Direct Marketing
9.3.6 Personal Selling
10. Porter’s Five Forces Analysis
10.1 Threat of new entrants
10.2 Bargaining power of buyers
10.3 Bargaining power of suppliers
10.4 Threat of substitute products or services
10.5 Rivalry among existing firms
11. IKEA Value-Chain Analysis
11.1 Primary Activities
11.1.1 Inbound logistics
11.1.2 Operations
11.1.3 Outbound logistics
11.1.4 Marketing and Sales
11.1.5 Service
11.2 Support Activities
11.2.1 Infrastructure.
11.2.2 Human Resource Management
11.2.3 Technology Development
11.2.4 Procurement
12. McKinsey 7S Model
12.1 Hard Elements
12.2 Soft Elements
13. IKEA Ecosystem
14. Corporate Social Responsibility
14.1 CSR Programs and Initiatives
14.2 CSR Criticism
List of Figures
Figure 1 IKEA organizational structure
Figure 2 Overview of the IKEA franchise system
Figure 3 IKEA Ansoff Growth Matrix
Figure 4 IKEA sales per region in FY21
Figure 5 Annual Lobbying by IKEA
Figure 6 Changes in lumber prices in United States (USD per thousand board feet)
Figure 7 Porter’s Five Forces
Figure 8 Numbers of visits to IKEA website (in millions)
Figure 9 Value chain analysis
Figure 10 IKEA procurement strategy
Figure 11 McKinsey 7S model
Figure 12 Water usage across IKEA value chain
List of Tables
Table 1 IKEA employee gender diversity in FY21
Table 2 IKEA SWOT Analysis
Table 3 IKEA segmentation, targeting and positioning
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- Published: August 2022
- 14443 Words
- 56 Pages
