Ikea-Value Chain - 1221 Words

1. Introduction IKEA is one of the most successful manufacturing and retail furniture companies operating in today’s global marketplace. IKEA manufacture from the bottom up, top down furniture that offers environmentally friendly, state of the art designed furniture that is both affordable and attractive to its customers via their online, catalogue and worldwide distribution channels, with a logistics network that are low cost footprints with the enforces on cost efficiencies couple with technology, product design, excellence and customer satisfaction. IKEA was founded by Ingvar Kamprad in a small village in Sweden. Its Scandinavian–style home furniture offer attractive designs at affordable prices. And IKEA is obtainable from 275 stores†¦show more content†¦Moreover, IKEA wants its wide range of customers to choose products at an affordable price that are durable, as well as safe and environmental friendly (IKEA sustainable report, 2011). 4.3 Outbound Logistics IKEA’s products are manufactured all over the world and they have been committed from their outset to offer furniture to its customers at affordable price. This has been possible because of the efficient outbound logistics. Smaller packaging allows customers to transport the purchased products in their own vehicles. By supplying products to their clients and customers in this form, this smaller packaging of products allows the company to maximize space in warehouses and at store level thus enabling IKEA to store considerable amount of products (IKEA sustainable report, 2011). 4.4 Marketing and Sales IKEA’s products meet the needs of all customers by providing well- designed and safe furniture at low price, opening up their products to customers from the moderate income group offering them the opportunity to buy this furniture. IKEA aims to lower the prices of its products by decreasing the cost involved in the transportations logistics and storing. IKEA offers catalogues as well as their online webpages to its customers to choose from their wide range of products, these catalogues are the daily innovations of IKEA’s efforts and creativities. The catalogue is valid for 12 months period offering new andShow MoreRelatedValue Chain Analysis: Literature Review and Application on Ikea2782 Words   |  12 Pages2012 Aisling Lynch C09687271 Aisling Lynch C09687271 Stratgic management the value chain concept: literature review and application analysis on IKEA Stratgic management the value chain concept: literature review and application analysis on IKEA Contents * Introduction * Origination * Porter’s Value Chain Concept * Linking of the Value Chain * Focus on External Sources * The Future - Conclusion * Ikea Example * References Declaration I, the undersigned, declare that thisRead MoreValue Chain-Ikea2677 Words   |  11 PagesAccording to Echeat (2006), the IKEA had more than 175 stores spread over 31 countries at the end of 2002 and worldwide sales of about 12.8 billion euros in 2004. During the IKEA financial year 2001-2002, a total of 60,000 people are employed by IKEA worldwide and there are 323 million people visited IKEA stores around the world (Kronos, 2006). IKEAîâ€" ¸ mission is to offer consumers good value for their money. The typical IKEA customer is young low to middle income family. IKEAîâ€" ¸ success in the retail industryRead MoreIkea Value Chain Analysis1530 Words   |  7 PagesIKEA is a strong, competitive leader in the global furniture market, providing low-cost home good products and other services to its consumers. It has developed strategies that empower and increase value to shareholders, provide affordable products to consumers of all demographics and continues to seek ways to reduce costs and be environmentally sustainable while maintaining the quality and affordability of its services. An overview of the Value Chain and its most influential components demonstratesRead MoreValue Chain Management of Ikea4524 Words   |  19 PagesIKEA Purchasing Strategy Jerry, Yeung Siu Hang TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2. INTRODUCTION †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 1. Company Background History 2. Company overview 3. Vision and Mission 4. Key Objective to build an efficient purchasing system to maximize the profit margin 3. Related Background†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 1. What is the definition of purchasing Management 2. What is the definition of Purchasing Management inRead MoreValue Chain : Competitive Advantage1300 Words   |  6 PagesValue Chain as Competitive Advantage If a firm sustain profits that exceed the industry average, said firm is said to have a competitive advantage. The goal of any given business strategy is to achieve a competitive advantage. Moreover, the goal of a successful business strategy is a sustainable competitive advantage. The question is how does a firm create that competitive advantage? According to Michael Porter, to achieve a competitive advantage, a firm must perform one or more value creating activitiesRead MoreValue Chain : Competitive Advantage1444 Words   |  6 PagesValue Chain as Competitive Advantage If a firm sustain profits that exceed the industry average, said firm is said to have a competitive advantage. The goal of any given business strategy is to achieve a competitive advantage. Moreover, the goal of a successful business strategy is a sustainable competitive advantage. The question is how does a firm create that competitive advantage? According to Michael Porter, to achieve a competitive advantage, a firm must perform one or more value creating activitiesRead MoreIkea Case Study Questions1745 Words   |  7 PagesMKT 4001 CONTEMPORARY MARKETING STRATEGY Ikea CASE STUDY Lecturer: Dr. Ian Michael BY SALMAN MAQSOOD SHEIKH M00122796 Word count - approx. 1700 WORDS Question 1 Develop a profile of the typical ikea customer. To what extent does this profile vary across countries? Ikea has managed to create an unbeatable atmosphere throughout each and every store they have opened world-wide. 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We can’t have the right goals with the wrong strategy. There is no value or competitive advantage to the improper planning of a strategy. Many people rely on Senior Management, rather than spawning a proper strategy themselves. Porter doesn’t believe that we need to be so passive at the lower levels of a company. The voicesRead MoreAnalyzing Porter s Five Forces And Value Chain Analysis Essay1809 Word s   |  8 PagesIngvar Kamprad, IKEA is a multinational group of companies that focus on ready-to-assemble furniture, appliances, and home accessories. The very first IKEA store named Mà ¶bel-IKÉA, opened in Almhult, Smaland(Mà ¶bel means â€Å"furniture† in Swedish), to currently, September 2016, have 389 stores in 48 different countries. With the 389 stores, IKEA successfully creating over â‚ ¬30 billion and over â‚ ¬3.5 billion net profit with the continuous development and expansion. In a very competitive market, IKEA remains industry