IKEA Group Report

Price: $9.75

IKEA Group owned by Stichting INGKA Foundation is the largest furniture and home appliances manufacturer and retailer in the world. Founded seven decades ago in Småland, southern Sweden by Ingvar Kamprad, today IKEA Group has 340 stores in 28 markets around the world. Moreover, the global furniture retailer has 22 Pick-up and Order Points in 11 countries, 41 Shopping Centres in 15 countries and 38 Distribution sites in 18 countries. IKEA employs about 163,600 people globally and its portfolio comprises 9500 products (Group Yearly Summary, 2016).

In financial year of 2016, IKEA Group generated sales of EUR 34.2 billion. Together with the rental income from the shopping centre business (IKEA Centres), total revenue increased by 7.4 per cent to EUR 35.1 billion. The company’s net profit for the same period amounted to EUR 4.2 billion. In FY2016, IKEA attracted 783 million store visits and 425 million shopping centre visitors (Group Yearly Summary, 2016).

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 founder of the business Ingvar Kamprad.

The furniture giant has a unique organizational structure integrating a large number of companies operating under the IKEA trademarks. All IKEA franchisees are independent of Inter IKEA Group. A large group of franchisees are owned and operated by INGKA Group. Inter IKEA Group and INGKA Group have the same founder, and a common history and heritage, but have operated under different owners and management since the 1980s (Our Business in Brief, 2017, online).

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 Russia, 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 and McKinsey 7S Model on IKEA. Moreover, the report contains analyses of IKEA’s business strategy, leadership and organizational structure and its marketing strategy. The report also discusses the issues of corporate social responsibility.


1. Executive Summary
2. Business Strategy
3. Leadership
4. Organizational Structure
5. Organizational Culture
6. SWOT Analysis
6.1 Strengths
6.2 Weaknesses
6.3 Opportunities
6.4 Threats
7. PESTEL Analysis
7.1 Political Factors
7.2 Economic Factors
7.3 Social Factors
7.4 Technological Factors
7.5 Environmental Factors
7.6 Legal Factors
8. Marketing Strategy
8.1 7Ps of Marketing
8.2 Segmentation, Targeting & Positioning
8.3 Marketing Communication Mix
8.3.1 Advertising
8.3.2 Sales Promotion
8.3.3 Events & Experiences
8.3.4 Public Relations
8.3.5 Direct Marketing
8.3.6 Personal Selling
9. Porter’s Five Forces Analysis
10. Value-Chain Analysis
10.1 Primary Activities
10.1.1 Inbound Logistics
10.1.2 Operations
10.1.3 Outbound Logistics
10.1.4 Marketing and Sales
10.1.5 Service
10.2 Support Activities
10.2.1 Infrastructure
10.2.2 Human Resource Management
10.2.3 Technology Development
10.2.4 Procurement
11. McKinsey 7S Framework
12. Corporate Social Responsibility (CSR)
12.1 CSR Programs and Initiatives
12.2 CSR Criticism

List of Figures

Figure 1 IKEA organizational structure
Figure 2 IKEA Group sales per region
Figure 3 IKEA Porter’s Five Forces
Figure 4 IKEA value chain analysis
Figure 5 IKEA procurement strategy
Figure 6 McKinsey 7S Framework

List of Tables

Table 1 IKEA SWOT analysis
Table 2 IKEA segmentation, targeting and positioning





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  • Published: August 2017
  • 10465 Words
  • 38 Pages
IKEA Group Report

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