IKEA Group, a Swedish company founded in 1943 with its headquarters in Denmark, is a multinational operator of a chain of stores for

home furnishing and furniture. It is the worlds largest furniture retailer, which specializes, in stylish but inexpensive Scandinavian designed furniture. The total of employee is about 104,000 and the revenue in 2009 is 28,6B USD. Its expansion into the US market. It adopted an ethnocentric strategy for going international - where it had standardized products and standardized operations. This helped to keep costs low, but ignored the different tastes and preferences of the US market and the way they purchased furniture. IKEA has looked towards emerging markets e.g. China for growth. Further adaptation to products has been necessary - including pricing strategy. IKEA has experienced greater competition from national brands. Since 1997, IKEA has increased its number of stores by 51. The company comprised 165 stores as of August 2003, and there are plans to open a further 16 new stores in both fiscal 2004 and 2005. However, although the company opened 14 new stores in fiscal 2003, sales growth was only 2.7%, largely as a result of the depressed economic conditions across Europe, the companys core business region. Thus, it is clear that, in order to improve performance at a significant level, merely opening new stores is not enough. Industry Analysis More than 300 stores in more than 35 countries, and also more then 600 million visitors around the world from Sweden to 35 countries around the world. -Western furniture history The classical world -->practicability & durability -->Ancient Greece , Roman, Turkey, Egypt The dark ages --> heavy, oak, ornamented with carved design The Baroque and Rococo -->the nineteenth century -->the transitional furniture -Asian furniture history China -->carved wood and bamboo, heavy lacquers Japan -->minimalist style, wood, high-quality craftsmanship Competitive Analysis:

1. Euromarkets Designs Inc. >Company type: Private >Founded: 1962 Chicago, Illinois, USA >Headquarters: Northbrook, Illinois, USA >Industry: Retail >Products: Housewares, Furniture >Sales (mil.):$ 401.3 (2007) >Employees: 6,000 (2007) Compare to IKEA: by revenue and employee, far behind; similar management style, marketing strategy, stores, online sales, catalog Characteristic: >two sister stores: CB2 is for young adults and the Land of Nod is for children. 2. Galiform plc >Company type: Public >Founded: 1964: MFI 2006: Galiform plc >Headquarters: London >Industry: Furniture Trade >Products: Kitchens & Bedrooms; Doors & Joinery >2006 Sales (bil.): $2.5 >2006 Employees: 10,728 Compare to IKEA: >by revenue and employee, far behind; better than Crate & Barrel >focuses on kitchen and bedroom products >in the UK and France markets. Characteristic: >Cuisine Stores 3. Wal-Mart Stores, Inc. Company Type: Discount department store/Public Founded: 1962 Headquarters: Bentonville, Arkansas, USA Products: Discount stores, hypermarkets Slogan: Save Money, Live Better. 2007 Sales (bil.): $348.6 2007 Employees (mil): 1.9 Compare to IKEA:

by revenue and employee number, Wal-Mart, biggest public company; IKEA, private extensive products, furniture is only a small portion not a direct competitor SWOT analysis for strengths, IKEA have a strong internationally known brand attracting key demographic customer groups. IKEA business model is unique in its construction and execution with little direct competition on a like for like basis. Success has been driven from the price architecture offering value to the customer in innovative but functional products. Despite the large shed operations IKEA operate there is a degree of specialist knowledge within key product areas where purchases are more considered and require assistance such as kitchen installations. The weakness, Although the model promotes low prices it has been identified there is an associated low level of customer service which couples this suggesting there is a need to work on service to ensure a complete shopping experience and ensure repeat business within the existing customer base. As a reaction to marketplace movement the development of Ecommerce has been necessary to compete in a modern technological world however there is also a consideration this movement into multi channel retailing moves away from the fundamental vision of the customer being able to see and touch the product. The opportunities, IKEA are moving from International to global status through the development of Asia and Eastern European models. Although there are negative associations within the development of the IKEA Ecommerce site there is an associated opportunity to achieve growth and increase levels of customer service as the additional transactional capability will reduce pressure from stores to a certain degree. The threats, Within growing competitive retail markets mainstream retailers are beginning to mirror the model of low cost value flat packed furniture which will impact on the buoyancy of IKEA. With economic concerns over rising living costs and depleting disposable income there is an overall threat to the performance of the business in UK and American markets specifically. The sales by region in Asia and Australia have 3%, North American has 16% and the Europe has 81%.Ikea top 5 sales countries in Germany, USA, United Kingdom, France and Sweden.

Home is the most important place in the world. It is the place that people go to pressures of life. It is the place that people go to spend time with their families and retreat from the pressures of life. A beautiful , well designed home can be created in a responsible way, by choosing home furnishing products that take all the environmental impact factors into consideration. That is why IKEA have been working hard for decades not only on the design of our product but also the product development, which impacts supplier relationships, raw materials, transportation and packaging. When you think of IKEA, you might think of well-designed chairs, bookcases, or a comfy sofa. But behind our great furnishings, theres a great story that goes into them. Its our social and environmental responsibility program called The IKEA way Our commitment to doing the right thing for our planet. Position IKEA as the leader in the home furnishings market. Deliver 60,000 visitors to the store during the four-day opening period. Deliver a very aggressive sales target ( the number is confidential )Provide a strong sense of connection between IKEA and the local community. Provide a strong sense of connection between IKEA and the local community. Effectively communicate IKEA & apposes personality (fun, empathetic, intelligent) and its product range (quality home furnishings for entire home). IKEA vision is To create a better everyday life for the many people. This type of marketing is used because IKEA products are launched at all sectors. This strategy is expensive and wasteful but it is successful for IKEA because all the product suite all markets segment. For example. , price of IKEA can be RM1 to few thousand Ringgits. IKEA is targeting 20 -35 year old professionals .The people care about where they live, and care about what if fees like at home. IKEA has been made more appreciate design of furniture to consumers. IKEA furniture is combined by Swedish folk styles & tradition design by Carl and Karin. IKEA begin to growth in 1980s and until now in 2000s IKEA is more adult in global market. IKEA core strategy all marketing materials and images must easy and clear. Customer relief Images and advertisements. Consistent logo IKEA logo is combined by blue and yellow in a simple and easy memorize. IKEA marketing mix analysis strategy is based on cost leadership. Products are sold at low prices. Low prices are a result of large

quantity purchasing, low cost logistics, store location in suburban areas and a DIY approach to marketing. IKEAs value chain is unique in that customer are also suppliers and suppliers are also customer .The transactions between the supplier and IKEA and on to the customer have a value adding step in each stage. IKEA stores are located in suburban areas. This fits IKEAs target market if customers willing to transport their own purchases and requiring less assistance in assembly. IKEA advertising has a strong opinion and subsequently it provokes conversation and debate. IKEA also raised awareness of our brand let people know they are different to other home furnishing companies and most importantly increased sales. Home furnishings retailer IKEAs decision to launch a mobile loyalty program should not be an isolated case. A loyalty programmobile, online or offline is a bulwark against shifting consumer allegiance when the times get rough. IKEAs mobile loyalty program is a good model for most marketer and retailer to follow. Enlisting the help of San Francisco firm bCode and Valassis Interactive, IKEA has created a text to enter loyalty program for customer interested in receiving timely discount from the retailer on their mobile phones (see story). This is absolutely the right time to debut such a mobile loyalty program. IKEA also has present customer service and support. They have seven types of free mattress removal, office planning, kitchen planning, home furnishing advice, delivery, assembly and installation and the gift card. The IKEA Every Quality Limited Warranties last for the number of years stated in the specific text for each product, starting from the date purchase. IKEA will examine the product and decide, at its discretion, if its covered under the limited warranty. The limited warranties are valid from the original date of purchase of the product. In order to rely on this limited warranty, the original receipt is required as proof of purchase from the original purchaser. IKEA product design and development, IKEA has been perfecting ways of creating attractive, durable and functional products. Some of the raw materials used in IKEA products are wood, cotton, metal, plastic, glass, and rattan. We try as much as possible to use renewable and recyclable materials. Its also for IKEA co-worker, furniture assemblers, certified installers, interior designers decorators and other professionals. Distribution is

responsible not only for moving products from point A to point B, but al so for maximizing efficiency, analyzing and managing supply chain issues and maintaining quality control throughout the supply chain- from the manufacturer to the customer in the warehouse. There are over 27 distribution centers and 11 customer distribution centers in 16 countries. IKEA maintains 41 Trading Service Offices in 30 countries, and has over 1350 suppliers in over 50 countries . Purchasing is responsible for ensuring reliable production, efficiency and minimal waste in manufacturing process. IKEA provide monitoring advertising campaigns have four types seems viral videos, billboard, printing and internet. Thus, anytime anywhere also can see on network. The IKEA profit and loss statement show the company type is private, their financial year end in august, on 2009 sales (mil) is 19,955.9 pound,1 year sales growth until 4.4%. On 2009, they have total employees are 123,000. IKEA one year can growth up employees are 3.8%.IKEAs long-term ambition is to become the leading home furnishing company. However, for IKEA, getting there is not simply about developing profitability and market share.