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Lasa

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IKEA: Ecommerce Expansion/ IT Capacity Management Information System Initiative
LASA 1

Organizational Structure
IKEA currently holds the position as the world’s largest furniture retail chain, with 332 locations, in 32 countries worldwide. IKEA is operated and owned by an array of no-for-profit corporations. The Organizational Structure is divided into two main entities: Franchising and operations. Many of IKEA’s operations, including the manufacturing and design of products, the managerial operations, and the supply-chain processes, are overseen by INGHKA Holding, which is private, for-profit Dutch Corporation. INGHKA Holding currently runs 235 of the IKEA stores, the remaining are operated and ran by franchises that are outside of INGHKA Holding. IKEA has differentiate themselves from their competitors, by satisfying the needs and wants of their consumers, with upholding a value proposition that is center on providing, high-quality products (furniture), at affordable prices. IKEA’s value proposition differentiated them from their competitors, secured competitive advantage and positioned themselves as the leader in furniture retailer, on a global level, by their value-based services, and marketing mix that emphasizes on areas such as: Location, Merchandise, Store Format, Market Communications, and Service and Selling Environment, which produced a remarkable “brand image”; “The essential role of brands is to differentiate a product or service from others in satisfying a given customer need.” Marketing, 2010)
IKEA’s powerful brand image and conveying there core values throughout the marketing platforms, and operational processes, in its self-have erected barriers in terms of competitors within their industry. Branding is where IKEA thrives. IKEA‘s marketing platform consists of four primary areas: Product Design, Catalogs, Public Relations/Communications, and…...

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