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Nature of business
IKEA is a multinational group that was founded in Sweden back in the year 1943 by Ingvar Kamprad who was by then just 17 years old. The main business that the company majors on is the designing and selling of ready-to-assemble furniture, home accessories and kitchen accessories (IKEA Official website 2018). The company has been well known for the modern designs in their appliances as well as in their furniture. Additionally, the interior designs of the company are said to have eco-friendly simplicity. Based on the company’s website IKEA have over 12,000 products and this is a close representation of the complete IKEA range.
IKEA’s earning, competitors, position in the industry
In the year 2017, IKEA was ranked at 365 billion Swedish Krona and when compared to previous revenues the earning of 2017 is the highest that the company have ever experienced since the chain was started in 1943 (Nair 2017). Despite been one the top furniture retailers all the over the globe and with its unique combination of function, form and affordability IKEA also faces a lot of competition from other companies. The competition is stiff and this is further complicated by the fact that they have to deal with different competitors in the various regions in which they have based the company’s operations. Some of the major competitors of IKEA includes but are not limited to Home Centre, Pan Emirates, and Greycork, Ashley Furniture and beddings and pottery Barn. Additionally IKEA faces a lot of competition from the online stores that have cropped up with time and this includes online stores such as Amazon, Zara, H & M, Fashion brands next and Alibaba.com just to mention a few of them (Fortune 2016). These stores are stiff competitors of IKEA due to the ease of accessibility, thus people from all over the globe can view, and order items from such stories with a lot of ease. Additionally to make shopping easier they are adding home furnishes in their product offerings. Over the years, the company has grown to be the globes largest furniture retailer since the year 2008. IKEA is widely known for the close attention on operational details, cost control, corporate attributes and the continuous product development, this enabled IKEA to lower their prices, and this facilitated the company’s global expansion.
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Countries with IKEA presence
Since its inception in Sweden, IKEA presence has been felt in a number of countries all over the globe. In this regard, IKEA have stores that exceed 400 all over the globe. There are a number of countries which IKEA have some double-digit stores and this includes countries such as Canada, Jordan, Australia, France, India, China, Germany, Qatar, Kuwait, Israel, Japan, and Italy, the United States, Netherlands, Saudi Arabia, Russia, Poland, Thailand, Spain, the united kingdom as well as in the United Arab Emirates (IKEA 2018).
The size of its workforce by country or by region or by strategic business unit
The workforce in a company is of great importance since they determine the success or failure of a company. Due to the wide number of stores that IKEA have the company have a large number of workforce all over the globe to manage their stores. The diagram below shows the workforce of IKEA based on the functions. Based on the diagram a total of 124,400 employees details with the retail function, 19,850 are based in the IKEA industry, 9,700 are in the range and supply and others, 7,500 employees handles the distribution function, and 2150 are based in the shopping centers. Thus, in total IKEA have a workforce of approximately 163,600 employees all over the globe (Statista 2018).
- Fortune 2016, ‘IKEA Eyes Higher Quality to Fend off New Rivals’, Fortune, 8 July, viewed 9 March 2018, http://fortune.com/2016/07/08/ikea-quality-improve-competition/
- IKEA 2018, About the IKEA Group,’ IKEA, viewed 9 March 2018, http://www.ikea.com/ms/en_JP/about_ikea/facts_and_figures/ikea_group_stores/index.html
- IKEA Official website 2018, ‘Products’, IKEA Official website, viewed 9 March 2018, http://www.ikea.com/us/en/catalog/allproducts/department/
- Nair, G 2017, ‘Here’s IKEA’s new billion-dollar market’, Business Insider Nordic, 10 October, viewed 9 March 2018, https://nordic.businessinsider.com/ikeas-billionaire-creator-turns-90-today–heres-how-he-built-the-worlds-largest-furniture-store-2017-6/
- Statista 2018, ‘Number of employees of the IKEA Group worldwide in 2016, by function (in thousands)’, Statista, viewed 9 March 2018, https://www.statista.com/statistics/241825/number-of-employees-of-the-ikea-group-worldwide-by-function/