IB Final.pptx

7/27/2019 IB Final.pptx

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To create a better everyday life for

the many.

Girish Kamble-63 Nilesh Khadkikar-72 Nilesh Nahate-100

Ganesh Navale-104 Priyanka Pengonda-112


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I-Ingvar(Name)

K-Kampard(Surname)

E-Elmtaryd(Farm where he grew up)

A-Agunnaryd(hometown in Smland, South

Sweden)


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Founded in 1943, Ingvar Kamprad(17), Sweden

Inexpensive Styling

Products

No Pre-Assembled just Self-Assembled


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30Billion Euro

1st Flagship Store 1958

332Stores

470Million Visits Online

776Million Visits Offline

1018Suppliers

38Countries


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The world's five largest IKEA stores are:

Stockholm Kungens Kurva, Sweden: 5,94,000 sq. ft.

Shanghai, China: 5,32,000 sq. ft.

Shenyang, China: 5,10,000 sq. ft.

Tianjin, China: 4,92,300 sq. ft.

Berlin Lichtenberg, Germany: 4,80,000 sq. ft.


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IKEA originally started by selling picture frames, wallets,

pens, watches, table runners, jewellery, and nylon stockings

etc.

Furniture was first added in the year 1948 and IKEA started

manufacturing its own furniture since 1955


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Part of Expansion

Strategy

Emerging in about

1-2 years

25 Stores

Total Investment-

1.5 billion EUR


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No Do-it-Yourself Culture

Low Home & Garden Expenditure

Scandinavian design too plain

No Brand Awareness


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Low

Current market is saturated

Financial investments & expertise are required

High

Competition is intense

Customers have alternative options offered by global

furniture retailers, as well as, local furniture producers

Low

Not too many products and services as substitutes

Low

Suppliers Competing to maintain relationship

Large no. of Suppliers

Potential Entrants

Buyers

Substitutes

Suppliers


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Unstable Government

Ruling & Opposition party lock horns over FDI

Centre and State/UT not on same page

Ease of doing business India ranks 132

nd

Internal Security


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Exchange Rates


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GDP Growth

4.4 in Q2


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Interest Rates

Last recorded as 7.5%


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Inflation Rate

- Aug 2013: 6.10%


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Unemployment Rate

- 2011: 3.8%


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Overall and industry-specific economicgrowth in markets

Globalisation

Market trends

Labour costs in each individual markets


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Poor infrastructure

4, 320, 000 kms of road network, 4 kms of road for every

1000 people

National highways: 40% of traffic, 1.7% of network, 24% 4-

lanes

29.8% living below national poverty line

5th largest consumer economy by 2025 (McKinsey report)

Middle class households: 31.4 million, 53.3 million by 2016, 113.8million by 2026 (NCAER report)

Love foreign-label brands: e.g. Munich Polo, Da Milano, Franco

Leone


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Small homes (National Sample Survey Organization)

32% of urban homes 258 sq. ft. or less

39% of rural homes 312 sq. ft. or less

Office space rental

2004: Mumbai 15th most expensive city in theworld, Delhi 32nd

2013: Slow real estate market, companiesmoving to bigger headquarters

Piracy and knockoffsNot just movies and music, but Ikea furniture as

well


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Sizes of homes make it difficult for people to visualize and buy more

than one piece of furniture

Buying any type of furniture without knowing if it fits is a

cumbersome commitment

Aesthetics & Ergonomics innovation:Ikea Flat Displays

Tie-up with builders, furnish sample flats

Offer discounts if customers buy a flat on that property


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R&D investments: good current growth, but low overall

Only 14 Indian companies in top 1500 in terms of annual R&D

However, Indian companies reported largest increase in R&D

investment (35.1%)

2013 investment: India$45 billion, China - $220 billion Energy issues

Power supply meets only 90% demand

Rolling power cuts across the nation bring cities to a standstill and

affect businesses

25% of population with no electricity

Electricity costs forever rising


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Increasing connectivity

350 million internet users by 2015

More than half will access the net via cell phones

Online shoppingConsumers use the internet to research, then buy

offline

To counter, several businesses offer home delivery and

cash on delivery options Social media

Number of users to hit 66 million by June 2013

74% of urban internet users use social media


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Bad infrastructure makes traveling a nightmare

Coupled with the fact that the number of internet users is on the rise,

it is safe to say that online shopping is only going to increase

Emotion and Product Identity innovation: I kea L ive Design

Same process as before

Offer online 3-D modeling as an alternative to live mock-up

Once design is finalized, offer free delivery and installation


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Inbound Logistic

- Well structured

-25% Job share in each store

Operation

-Franchised and company owned stores-Out-sourced manufacturing

Outbound logistic

-Customer pay for transportation

Marketing and sale

-Use stores as advertising unit

-Relatively less reliance on commercialadvertisement

Service

-Limited customer services

-Information is given via catalogue

Documents

IB Final.pptx