IKEAINNOVATION SINCE 1943

Founded by Ingvar Kamprad in 1943

1951 – first catalogue came out and Ingvar decides to sell only furniture

First store in ALMHULT , Sweden

IKEA's vision - 'To create a better everyday life for the many people.'

Low pricing strategy - 'Low price but not at any price'

BUILDING A SUSTAINABLE SUPPLY CHAIN

Primary sector • 1,300 suppliers in 50 countries. • Long term contracts with suppliers• IKEA creates many design solutions to minimise

the use of materials.• Close watch over suppliers and producers • During manufacturing IKEA specifies to its

producers that waste should be avoided

• Secondary sector • Minimalist design - Put the priority on the design, not the designer

• IWAY code - IKEA Way of Purchasing Home Furnishing Products (IWAY),• The IWAY code of practice expects suppliers to:• follow national and international laws• not use child labor• not use woods and glues from non-sustainable forests• reduce their waste and emissions• contribute to recycling• follow health and safety requirements• care for the environment

Sustainable partnerships- Community programme in Northern India, World Wildlife Fund (WWF)

•Tertiary sector • Tertiary sector provides services• IKEA mantra - “We listen and support each individual to

identify his or her needs, ambitions and capabilities “• The IKEA store is built on a concept of 'you do half, we do

half; together we save money'.In-Store Logistics

Management

High flow and Low Flow

warehouse tactics

Cost-Per-Touch Inventory Tactic

Combined Retail and warehouse

settings

Min/Max System settings

Do-It-Yourself Assembly

• 80 percent of consumers have purchased home furnishings online

• Roughly 73 percent prefer to shop in-store

ONLINE PROGRESS

Augmented Reality

Installations via Instagram

Make Small Spaces Big 360

Wedding Online

Strength &Weakness A strong global brand which attracts key

target groups

Reasonable designs'

Low prices

UpperClass

IKEA need for low cost supply - Quality and

Differentiation.The size and scale of its worldwide

business. Hard to control standards and quality.

• IKEA has purchased a 13 acre land close to the IT hub in Hyderabad’s HITEC city

• India-specific challenges • 1)varying laws in different states ruled by different

political parties.• 2)The delay in policy-making at the state level• 3)Buying behavior of Indian Middle class• 4) Cost is above average• 5) Copy Cats

INDIAN ANGLE

• IKEA's long-term ambition is to become the leading home furnishing company.

• Powerful brand, ranking among Forbes Top 50 World’s Most Valuable Brands – number 45

• Buzz score rankings list of general retailers - First.• All – round Sustainability • IKEA differentiation - educated suppliers to understand

how and why sustainable production is vital. • IKEA = Responsible & trustworthy company.

CONCLUSION