3. IKEA’s history
• 1943 : established in Sweden
• 1974 : entered into Japan
• 1986 : left from Japan
(DIY model wasn’t accepted in Japan)
• 2002 : re-entered into Japan
• 2006 : opened first store in Chiba
• Now : has 7 stores
(in Chiba, Kanagawa, Hyogo, Osaka, Saitama,
Sendai and Fukuoka)
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4. 5Cs Analysis -Context-
Furniture retail industry’s situation
• Northern european design furniture became popular
all over the world (Opportunity)
• This industry’s revenue peaked at 1991
and kept shrinking due to the recession (Threat)
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5. Company
IKEA’s Features
• Strong Points
✓ Low price with high quality
✓ Stylish northern European design
✓ Wide range items in huge inventory
Low price restaurant with nice swedish food
• Weak Points
✓ Bad Location designed for car users
✓ DIY model (or high cost assembly service)
✓ No Web Store (even pick up service offered)
✓ Poor delivery service (it takes 1 - 2 weeks)
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6. Competitor
Positioning Map
Stylish
•IKEA •Franc Franc
•Loft
•Nitori •Tokyu Hands
•Otsuka •Muji
Traditional
Furniture Interior goods
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8. Customer & Collaborator
Japanese Customers
• Price conscious due to the 20-year-recession
(Threat & Opportunity)
• Young people prefer North european furniture
(Opportunity)
IKEA’s Collaborator
• Bus agencies
Delivery & assembly servicers
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10. Target user
Who are IKEA’s users?
• Young single women
✓ Fashion sensitive
✓ Unable to assemble furnitures alone
• Young families
✓ Cost conscious
Want to be free from children
✓ Children are potential customers
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11. my Proposals (1 of 2)
Do “Showrooming”, buy at Web Store
• Problems
✓ Too big to bring
‣ from inventory to register
‣ from register to home
✓ Wait long time to purchase
Want to see items before purchase
• My Proposal
➡Launch Web Store & App!
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13. my Proposals (1 of 2)
What is the Web Store & App?
• How to use
1. Find items in a real store
2. Scan barcodes using the app
3. List items
4. Purchase them on the app
5. Receive them at home
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14. my Proposals (2 of 2)
Enabling people to have fun at real store!
• Problems
✓ Most of customers don’t come often
✓ Kids room and Restaurant aren’t enough
• My Proposal
➡Collaborate with other company!
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15. my Proposals (2 of 2)
What company?
• Fashionable & reasonable Companies
✓ H&M (Swedish company)
✓ ZARA
✓ GAP
➡ Model room with these companies
Collaborate in advertising in fashion magazine
➡ Synergy effects b/w IKEA and H&M
(Compared with Bicqlo’s Case)
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17. 4Ps analysis
What can IKEA do?
• Place
✓ Change place where IKEA sell their product?
• Product
✓ Change product? Change services?
• Price
✓ Keep prices? Launch new line/brand?
• Promote
How can IKEA promote their products?
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First, IKEA’s History IKEA was established in Sweden and launch many subsidiaries all over the wold. IKEA once entered into Japanese market. but
1. you can see and touch items on the real store 2. you don’t have to bring items 3. you can purchase items without waiting, making a line 4. you don’t have to bring items to your home, IKEA bring them to your home
Kids room and Restaurant aren’t enough to spend a whole day
Kids room and Restaurant aren’t enough to spend a whole day
