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Freddy Skarbø Petter Haugarvoll Bjørn G. Bergem

Freddy Skarbø Petter Haugarvoll Bjørn G. Bergem. The Beginning. Founded by Ingvar Kamprad in 1943 First store opened in 1953 Begins testing flat packages First store outside Sweden opened in 1963 (Norway, Oslo) 186 stores in 43 countries. IKEA Value Chain. Suppliers and Purchasing.

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Freddy Skarbø Petter Haugarvoll Bjørn G. Bergem

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  1. Freddy Skarbø Petter Haugarvoll Bjørn G. Bergem

  2. The Beginning • Founded by Ingvar Kamprad in 1943 • First store opened in 1953 • Begins testing flat packages • First store outside Sweden opened in 1963 (Norway, Oslo) • 186 stores in 43 countries

  3. IKEA Value Chain

  4. Suppliers and Purchasing • 1.800 suppliers in 55 countries • Purchase most products from Europe, but also from Asia • Manufactures many of its products through IKEAs industrial group Swedwood • Swedwood was founded in 1991 and consists of sawmills and factories

  5. Products/Range • 76.000 employees in 43 countries • Turnover for the financial year 2002 was 11,3 billion euro • Sells more than 10.000 articles • Product Development Company consist of 760 employees.

  6. Children’s IKEA • The launch of Children’s IKEA in 1997

  7. IKEA Catalog • Worlds largest printed publication • Main task is to lure customers to their stores for a whole year • 131 million copies • 23 languages and 45 different editions • Also ’Kitchen brochure’, ’Office brochure’, ’Bedrom brochure’ etc.

  8. Evans & Wurster Businesses compete on the elements • Reach – how buyers and sellers most effectively can find each other • Richness – ability to emphasize product attributes and/or reinforce branding • Affiliation – whose interests in the value chain the business represents

  9. Richness and Reach RICHNESS • The quality of the information • Bandwidth • Customization • Interactivity • Reliability • Security • Currency REACH The number of people exchanging information

  10. The trade-off blown up RICHNESS New levels of richness and reach attainable • Enablers • Connectivity • Dissemination of standards REACH

  11. Deconstruction • Competitive advantage “de-averaged” • Intensified competition • Information businesses inherit new value • New opportunities for physical businesses • Disintermediation • Navigators emerge

  12. Disintermediation RICHNESS New approach Traditional approach REACH

  13. Navigators Competition is to aid customers to navigate towards your company’s products. The navigator will compete on • Reach – the size of the universe across which it can navigate • Richness – the quality and customization of the information delivered • Affiliation – the closeness with which the navigator identifies with the interests of its client, and serve as agent for the client’s interests

  14. IKEA – new business model RICHNESS Segment-of-one Alliances Virtual design Online ordering Web catalogue REACH

  15. IKEA versus Stordal Møbler RICHNESS Stordal IKEA REACH

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