Presentation Transcript
Slide 1:Freddy Skarbø
Petter Haugarvoll
Bjørn G. Bergem
The Beginning :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 :IKEA Value Chain
Suppliers and Purchasing :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
Products/Range :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.
Children’s IKEA :Children’s IKEA The launch of Children’s IKEA in 1997
IKEA Catalog :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.
Evans & Wurster :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
Richness and Reach :Richness and Reach RICHNESS REACH The number of people exchanging information The quality of the information
Bandwidth
Customization
Interactivity
Reliability
Security
Currency
The trade-off blown up :The trade-off blown up RICHNESS REACH Enablers
Connectivity
Dissemination of standards New levels of richness and reach attainable
Deconstruction :Deconstruction Competitive advantage “de-averaged”
Intensified competition
Information businesses inherit new value
New opportunities for physical businesses
Disintermediation
Navigators emerge
Disintermediation :Disintermediation RICHNESS REACH Traditional
approach New approach
Navigators :Navigators 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 Competition is to aid customers to navigate towards your company’s products.
IKEA – new business model :IKEA – new business model RICHNESS REACH Web catalogue Online ordering Virtual design Alliances Segment-of-one
IKEA versus Stordal Møbler :IKEA versus Stordal Møbler RICHNESS REACH Stordal IKEA