Freddy SkarbøPetter HaugarvollBjørn 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 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

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.

Children’s IKEA

The launch of Children’s IKEA in 1997

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.

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

Richness and Reach

RICHNESS

REACHThe number of people exchanging information

The quality of the information

1. Bandwidth

2. Customization

3. Interactivity

4. Reliability

5. Security

6. Currency

The trade-off blown up

RICHNESS

REACH

Enablers•Connectivity•Dissemination of

standards

New levels of richness and reach attainable

Deconstruction Competitive advantage “de-averaged” Intensified competition Information businesses inherit new

value New opportunities for physical

businesses Disintermediation Navigators emerge

Disintermediation

RICHNESS

REACH

Traditionalapproach

New approach

Navigators

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

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

IKEA – new business model

RICHNESS

REACH

Web catalogue

Online ordering

Virtual design

Alliances

Segment-of-one

IKEA versus Stordal Møbler

RICHNESS

REACH

Stordal IKEA