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Freddy Skarbø Petter Haugarvoll Bjørn G. Bergem. The Beginning. Founded by Ingvar Kamprad in 1943 First store opened in 1953 Begins testing flat packages First store outside Sweden opened in 1963 (Norway, Oslo) 186 stores in 43 countries. IKEA Value Chain. Suppliers and Purchasing.

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Freddy skarb petter haugarvoll bj rn g bergem l.jpg

Freddy Skarbø

Petter Haugarvoll

Bjørn G. Bergem


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The Beginning

  • Founded by Ingvar Kamprad in 1943

  • First store opened in 1953

  • Begins testing flat packages

  • First store outside Sweden opened in 1963 (Norway, Oslo)

  • 186 stores in 43 countries



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Suppliers and Purchasing

  • 1.800 suppliers in 55 countries

  • Purchase most products from Europe, but also from Asia

  • Manufactures many of its products through IKEAs industrial group Swedwood

  • Swedwood was founded in 1991 and consists of sawmills and factories


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Products/Range

  • 76.000 employees in 43 countries

  • Turnover for the financial year 2002 was 11,3 billion euro

  • Sells more than 10.000 articles

  • Product Development Company consist of 760 employees.


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Children’s IKEA

  • The launch of Children’s IKEA in 1997


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IKEA Catalog

  • Worlds largest printed publication

  • Main task is to lure customers to their stores for a whole year

  • 131 million copies

  • 23 languages and 45 different editions

  • Also ’Kitchen brochure’, ’Office brochure’, ’Bedrom brochure’ etc.


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Evans & Wurster

Businesses compete on the elements

  • Reach – how buyers and sellers most effectively can find each other

  • Richness – ability to emphasize product attributes and/or reinforce branding

  • Affiliation – whose interests in the value chain the business represents


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Richness and Reach

RICHNESS

  • The quality of the information

  • Bandwidth

  • Customization

  • Interactivity

  • Reliability

  • Security

  • Currency

REACH

The number of people exchanging information


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The trade-off blown up

RICHNESS

New levels of richness and reach attainable

  • Enablers

  • Connectivity

  • Dissemination of standards

REACH


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Deconstruction

  • Competitive advantage “de-averaged”

  • Intensified competition

  • Information businesses inherit new value

  • New opportunities for physical businesses

  • Disintermediation

  • Navigators emerge


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Disintermediation

RICHNESS

New approach

Traditional

approach

REACH


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Navigators

Competition is to aid customers to navigate towards your company’s products.

The navigator will compete on

  • Reach – the size of the universe across which it can navigate

  • Richness – the quality and customization of the information delivered

  • Affiliation – the closeness with which the navigator identifies with the interests of its client, and serve as agent for the client’s interests


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IKEA – new business model

RICHNESS

Segment-of-one

Alliances

Virtual design

Online ordering

Web catalogue

REACH


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IKEA versus Stordal Møbler

RICHNESS

Stordal

IKEA

REACH


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