Diapositiva 1

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ETSITgroup
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Basic Information

• wide range
• well-designed
• functional home furnishing products
• low prices 

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Location

• 44 countries around the world

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Size

• 41 trading service offices in 30 countries
• about 1,380 suppliers in 54 countries

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History

• story begins in 1926 in Sweden
• 1960s-1970s concept starts to take shape
• 1980s IKEA expands dramatically into new markets
  such as USA, Italy, France and the UK
• 1990s Children's IKEA is introduced
• 2000s expand to Japan and Russia, environmental
  products

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Competitors

• Some in each country
• MOBLERONE, MUEBLES LA FÁBRICA, ART MOBEL in Spain

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Business sector

• Wood-based furniture and wooden components

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Furniture

• designed to be assembled by the consumer
• reduce costs (shipped unassembled, )
• flat-pack distribution methods allow for easier
  transport via public transport from the store to
  a customer's home

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Manufacturing

• largely manufactured in developing countries
• little production actually takes place in Sweden
• most of its products, the final assembly is
  performed by the end-user (consumer)

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Product names

• Origen in Sweeden
• DUKTIG (meaning good, well-behaved) is a line of
  children's toys
• BILLY (a Swedish masculine name) is a popular
  shelf
• DINERA (meaning (to) dine) for tableware
• KASSETT (meaning cassette) for media storage.
• SKÄRPT (meaning sharp or clever) is a line of
  kitchen knives

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Good design and function

• good design
• good function
• right quality
• affordable price
• not easy combining
• constantly looking for smart solutions to meet
  our customers needs.

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Pareto Principle

• 80-20 rule or the law of the vital few
• an observation that 80 of the effects come from
  20 of the causes

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Use of Pareto Principle

• sales
• calculating all discretionary expenses
• quality and process improvement projects
• comparing the recourses required to accomplish
  each (time, money) with the benefits gained

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Flowchart

• picture of the separate steps of process in
  sequential order
• the process described can be a manufacturing
  process, an administrative or service process, a
  project plan

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Cause and Effect Diagram

• the fishbone diagram identifies many possible
  causes for an effect or problem
• used to find problem sources or solutions

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Product-focused strategy

• plants producing the products are organized by
  product
• high volumes of Ikea products produced to be sold
  in stores worldwide (large quantities, little
  variety)
• low product flexibility
• high equipment utilization

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Analysis and Design questions

• Is the process designed to achieve competitive
  advantage in terms of differentiation, response,
  or low cost?

• designed to achieve competitive advantage in low
  cost
• saving money in packaging products

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• Does the process eliminate steps that do not add
  value?

• creating a component of the product that has a
  dual purpose
• eliminated a packaging step that did not increase
  the value of the product
• using the lampshade as part of the processing and
  packaging step
• cut out additional costs such as purchasing
  packaging material

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• Will the process win orders?

• possibly new process will be popular among those
  with an environmental concern
• becoming increasingly important in this day and
  age for companies to be socially responsible by
  reducing waste and energy consumption
• new process will potentially increase the social
  value of the company

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Tech side

• a lot of technical tools to design and
  manufacture each product
• Design Technology Computer-Aided Design (CAD)
• Robots perform monotonous and dangerous tasks
  and move wood, what is really heavy
• Automated Storage and Retrieval Systems (ASRSs
  These systems are found in inventory and test
  areas of each store

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Possibilities of Internet

• good channel to show our products
• not possible to carry out a purchase from home
• lot of items whose size is very large and the
  costs of transport could rise a lot
• in the future a lot of little size products
  without post costs

www.ikea.es
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Twitter

• great tool for providing IKEA with ongoing tools,
  resources and tips on IKEAs company of expertise
  
• quickly finding vendors, employees, tech help and
  partners that match IKEA company
• tracking all kinds of shipments with several
  different shipping companies
• asking what products clients like, recommending
  new products, inviting to the company upcoming
  events

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http//ipgo.webs.upv.es/ETSITgroup/index.htm