IKEA Group: Profitable growth through diversity

IKEA is one of the world's most renowned and successful retailers, as well as a leader in its field of furniture and homewares. Central to this success has been the company's ability to diversify and expand, both geographically and in terms of its product offering, while maintaining a firm handle on costs.

Scope

  • Outlines IKEA's recent financial performance and explains the reasons for it.
  • Analyzes IKEA's global business model, looking at growth markets and areas of concentration.
  • Assesses IKEA's growth prospects as it looks to expand in existing markets, enter new ones and roll out new, innovative product lines.

Reasons to buy

How has IKEA performed in financial terms in recent years? What are the driving factors behind these numbers?

What is IKEA's vertically integrated business model and how does the company benefit from it?

Where does IKEA operate?

What may the future hold for company?

Companies mentioned

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Table of Contents

OVERVIEW

Catalyst

Summary

VERTICAL INTEGRATION KEY TO BUSINESS MODEL

Ownership structure facilitates vertical integration

Stichting INGKA Foundation is the ultimate head

Stichting IKEA Foundation: The ...

OVERVIEW

Catalyst

Summary

VERTICAL INTEGRATION KEY TO BUSINESS MODEL

Ownership structure facilitates vertical integration

Stichting INGKA Foundation is the ultimate head

Stichting IKEA Foundation: The philanthropic arm

INGKA Holding B.V.: The parent of The IKEA Group of Companies

The IKEA Group of Companies: IKEA's nuts and bolts

IKEA Industry: Major supplier helps control inputs & margins

IKEA Group Retail: Global network, wide-ranging inventory

Large stores, diverse offering

Building an e-commerce presence

Effective inventory cost management

Profitable growth in recent years

IKEA performs well compared to competitors

GLOBAL SUPPLY, GLOBAL SALES

IKEA's global sales footprint spans four continents

Sales concentration in Europe remains

Asia the company's big growth region

IKEA not neglecting core markets

Sourcing from around the globe

NEW MARKETS, PRODUCTS & STORE FORMAT

Continued geographic expansion program

Indian entry a certainty, South America a possibility

New stores in China and South Korea

Continued expansion in established core markets

Technology and energy at forefront of new product lines

Wireless charging furniture now on the market

Renewable energy potential new revenue stream or CSR image booster

Smaller store format to reach new demographics

CONCLUSIONS

Diversification key to success, both past and future

APPENDIX

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