Detailed analysis report of IKEA business model

In the past six years, the total sales of IKEA have been increasing. The fundamental reason is that IKEA has always adhered to the cost leadership strategy, that is, modular furniture design method and IKEA effect. What kind of business model does IKEA have today? The following is the business model of IKEA that I have compiled for you. I hope you like it.

Ikea's business model

The business model consists of five elements: customer orientation, value proposition, value chain extension, dynamic capability and income model. Among them, customer orientation and value proposition are related to the characteristics of enterprises, which are relatively fixed and determine the nature of enterprises; The other three elements change with the change of business activities, which embodies the individuality and diversity of business model. Different types of home retail enterprises need to integrate social resources, dynamic capabilities and the ability to obtain cash flow due to different positioning and value propositions, which reflects different control over network resources and forms different business models. Based on customer orientation and value proposition, this paper defines four typical business models of home retail enterprises.

1. Simple hometown city model

Retail shopping malls mainly provide housing rental and property for home manufacturers, with simple management consulting and government relations services, such as coordinating industrial and commercial tax relations. There is no need or little need to serve the settled enterprises through social service institutions. The competitiveness of retail malls is only reflected in low rents or preferential tax policies.

2. Multi-brand+supermarket management mode

Retailers purchase the required products from suppliers, and the products are divided into different areas according to building materials, household appliances and furniture, and each area is displayed centrally according to categories. Retailers operate independently without franchisees to share the risks. Its biggest advantage is that customer orientation has made it clear that it implements unified procurement, unified marketing and unified settlement; The weakness lies in dynamic capability and weak value chain. In addition to selling household products, it brings less other services to consumers, relatively few network resources and a single income model.

3. Brand centralized display+mall management mode

This kind of retailer rents booths to higher-grade brand manufacturers, and there is a cooperative relationship between merchants and shops, and shops and brands share the costs and risks. Home products are first-line varieties at home and abroad, mostly in the middle range, attracting consumers in the form of products. In addition, in order to bring extra profits to enterprises, this business model introduces financial capital into the household industry, and stores and well-known manufacturers become key investment targets. At the same time, the store itself has complete facilities, and the business circle includes after-sales service, catering and leisure.

4. Private brand+shopping mall management mode

By collecting, sorting out and analyzing consumers' demand information and requirements for a certain kind of goods, retailers put forward the development and design requirements of new products in terms of function, price and shape. , and choose a suitable production enterprise or design and produce it by itself, and put its own trademark or label on the goods it sells for sale.

Analysis of IKEA business model

1. Market positioning

? Create a better daily life for most people? It is the direction that IKEA has been striving for since its establishment. The IKEA brand has always been associated with improving people's quality of life? Provide affordable, well-designed, fully functional and low-priced household items for as many customers as possible? The commercial purpose of. IKEA's target customers are mainly between the ages of 20 and 45. The target consumers are young people, who want high style and can't afford high prices. They are very willing to sacrifice service in exchange for cost reduction.

2. Control of independent brands

Simple brand logo symbolizes the credibility, willfulness, durability and simplicity of home products. IKEA emphasizes simplicity, naturalness, freshness, unique style and well-designed products. Does IKEA skillfully use geometric figures to create? Ikea? Unique and meaningful brand image. The brand logo recombined from these old elements will naturally be associated with it? Ikea? The characteristics of the industry also give people a sense of stability and simplicity. Also, IKEA has always insisted on designing all its products and owning its own patents. Every year, more than 65,438+000 designers work around the clock to ensure that? All products, all patents? . This not only occupies an advantage in the procurement process, but also truly integrates products and channels.

3. Pre-research and development pricing

IKEA adopts the method of pricing first and then developing, which breaks through the traditional thinking of considering cost-based pricing after delivery. In the design process, the designer first obtains the sales price of the product, and then on this basis, the designer starts with the design style and structure. Finally, the designer cooperates with the manufacturers who can provide the price system to complete the whole process of material selection, proofing, finalization and packaging, which ensures the low-cost advantage of IKEA products. Once launched, it will definitely have a strong competitive position in the city. Secondly, the information source of R&D is from the outside to the inside, which abandons the traditional survey methods of a large number of consumers. All information is provided by consumers in their inquiry, procurement, design, service, transportation and other links, which strengthens the interaction between R&D personnel and consumers and grasps the real needs of target groups.

4. Modular design

Invented by IKEA? Module? Design method of style furniture. IKEA furniture is assembled in pieces, and the products are divided into different modules and designed in blocks. Modularization means mass production and mass logistics. Different modules can be produced in different regions according to the cost. At the same time, some modules can also be used for different furniture. This not only reduces the design cost, but also reduces the total cost of the product, realizes the organic unity of satisfying basic functions and personalization, and finally maximizes cost-effectiveness.

5. Optimize the design strategy

The so-called optimal design is to find a design scheme that can meet all the design requirements and needs the least expenditure. For example, IKEA pioneered the technology of spraying fiberboard. This practice has always been applied to low-tensile surface materials of relatively low-priced products. However, IKEA not only uses this technology in its kitchen ware Varde, but also combines five materials to reduce the cost of producing materials. Varde's most expensive materials are used for external carving, and the cheapest materials are used for the interior of drawers. The saved cost is used for high-quality hinges and handles, which not only ensures the low price requirements of the products, but also makes the products have noble quality.

6. Technological material innovation

IKEA constantly adopts new materials and technologies to improve product performance and reduce prices. At first, with the change of the market, the price of chair wood in Ogras became too high, so flat packaging was adopted to reduce the cost. When flat packaging can't meet the requirements of low cost, IKEA designers use composite plastics instead of wood. Later, in order to further reduce costs, IKEA introduced a new technology into the furniture industry, saving materials and reducing weight by injecting gas into composite plastics, and producing products faster. The purpose of this repeated revision is very simple, that is, to reduce resource consumption and packaging and transportation costs while ensuring quality, so that innovation can serve costs.

The founder of IKEA

Ikea founder Ingvar? Kamprad was born in Smaran, southern Sweden on 1926.

He grew up on Elmtaryd farm near the small village of Agunnaryd. Ingvar was determined to start his own company when he was young. At first, he sold matches to his neighbors by bike. He found that buying matches in bulk from Stockholm can get very cheap prices, and then retailing at very low prices, and he can still make a lot of profits from it. Later, his business scope continued to expand and he began to sell fish, Christmas tree decorations, seeds, ballpoint pens and pencils.