Corperate Strategy Of Ikea Malaysia Essay

2269 words - 9 pages

Introduction 2.0 Background of IKEAIkea concept in 1943, from the founder ingvar kamprad initials, coupled with the acronym Elmtaryd and Argentina, farms and villages where he grew up. In 1951, ingvar on furniture. So ikea began to think about graphic packaging design furniture. In 1956, ikea began testing flat the concept of packaging to reduce costs, by reducing transport costs, reduce the storage space requirements, reducing the loss of transportation, reduce labor costs. (IKEA Fans 2009).First full in Almhult ikea store opened in 1958, it is displayed in all Scandinavia's largest furniture. In 1973, opened the first store near the Scandinavian peninsula in Zurich, Switzerland, the second is from ikea began to rapid growth in Munich, Germany in 1974. In 1985, ikea opened its first store, we ikea UK is opening to the outside world in 1987 for the first time. In 2008, ikea has 285 stores in 36 countries, an additional 26 store opened in 2009, is one of the world's largest furniture manufacturer (Kippenberger 1997).3.0 Corporate Strategy3.1 Company Vision"To create a better everyday life for many people", includes a lot more than just providing a great home furnishing offer. IKEA business idea is support this vison by offering a wide range of well-designed, functional home furnishing products at prices so that as many as possible will be able to afford them. It is also about taking social and environmental responsibility towards IKEA customers, co-workers and the people who produce our products. (IKEA 2013).3.2 Organization StructureInter IKEA Systems B.V. was established in 1983 in the Netherlands. It was founded to conceptualize the IKEA business model into what today has become the IKEA Concept. Inter IKEA Systems B.V is the owner of the IKEA Concept and the worldwide IKEA franchisor. The CEO is Torbjörn Lööf.Inter IKEA Systems B.V. is a company within the Franchise Division of Inter IKEA Group. The Franchise Division also includes service companies and companies selling IKEA products to franchisees on cert​ain markets.3.2.2 Group Structure3.2.1 Organization ChartSWOT Analysis of IKEAPORTER's 5 FORCE AnalysisPorter's 5 forces an analytical tool that analyses industrial structures in accordance with 5 competitive forces. This model is commonly used to analyses the drawing power of a specific industry where corporation operates, consequently determining the profitability of a corporation's making in the industry.Threat of Buyers growing bargaining powerThere is a little power because of the existing low-price options.IKEA ensure that their customers in all aspects will be satisfied for quality service they provide. Besides that, IKEA more focused their marketing approach on demands and needs of the buyer.IKEA uses their corporate responsibility as a good public image to their customers.3.1 Competitive rivalry among firmsIkea in a very competitive industry, is composed of a number of other low price, good quality furniture...

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