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Business Model IKEA Essay

Business Model (IKEA International Group) 1. Business Model Canvas Key Partners 1. Suppliers 2. Manufacturers 3. Brand Vendors 4. Service Providers Key Activities 1. Design and Develop Furniture and Home Decoration Items 2. Product Planning 3. Inventory Control 4. Marketing and Sales 5. Restaurant 6. Customer Services Value Proposltlon 1 .

Offer Innovative and comprehensive products with affordable price to customers 2. Advocate self-service for mix and match by customers through uninstalled packaging roducts 3. Display key products at Home life style showroom to inspire customers for decoration their home by simple and easy ways Customer Relationships 1 . Self service 2. Customer service upon request 3.

One stop service of Interior design to Home, offices, business organization Customer Segments 1 Mass Market for family, Business organization 2 Creative customers 3 Enjoy DIY customers Key Resources 1 Suppliers 2 Design and Marketing Teams 3 Stores 4 Distribution Centres 5 Customer Services Channels Advertisement on TV 2 On-Line Store 3 Phone App 4 Catalogue at stores Cost Structures Economy of scope 2 Product Manufacturing 3 Marketing and Sales 4 Design Teams and Operational Staff 5 Rents of Stores and Distribution Centres Revenue Streams 1 Asset Sales.

Selling products 2 Usage Fees. Product delivery, Assembly,

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Interior services 2. Success Factors of the Business Key activities Strong international brand recognition (“Best Global Brands,”2013) Establish well co- operative suppliers by products Value Proposition Apply inexpensive raw materials, rational production methods and low cost factors to maintain low product cost Merge designed image into products

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