Ingvar Kamprad Elmtaryd Agunnaryd (IKEA) refers to a worldwide home products retailer that focuses on selling furniture as well as other related accessories around the world. The company initiated flat pack design furniture at considerable prices and is now perceived to be the largest furniture retailer. It reaches a large group of people. It has 114 stores in the world which have existed for about 25 years. There are two businesses that make IKEA; INGKA Holding B.V as the centre of all company groups and Swedwood industry that specializes in making furniture. All the stores of IKEA are franchised and ran by franchisee. The company originated in Smaland, Sweden and shares out its products through its retail openings (Berggren, 56).
Information Technology application
Information Technology is dynamically being used throughout the entire IKEA Company, giving help and developing the systems that are required to adequately match the companies’ ways of working. A current IT network promotes the sharing of information effectively within the IKEA Company, process the required orders and facilitate smooth communication with dealers as well as customers. Through the availability of the network, the distribution of the designed products done easily and a large group of people are reached.
Through communication, IKEA makes catalogues that are made available to 250 million homes. ICOM as a department is responsible for catalogue designing and is well Staffed by creative designers, art directors, copywriters and photographers. The department produces variety of publicity and information reaching many consumers and co-workers.
The presence of the website has also propelled the company to move to great heights in terms of operation. Some of the products are ordered online by the customers. This, to a larger extent has ensured that the products reach every corner of the world (Ogolla 66).
I.T. has also been applied in trademark and the brands of the IKEA company. There is a unique trademark which clearly defines that products manufactured by the company. The trademark logo which bears the name that is designed geometrically in yellow oval shape and is specifically placed in a blue shaded rectangular shape. This helps in hastening identification of the available retail stores together with catalogues for customers.
The products that are manufactured by the IKEA company have a unique design. They are designed in such a way that it is easy for the customer to put or assemble the various parts together. This enables the company to minimize the costs and packaging if not for shipping air. The flat-pack kind of distribution mode makes it easy for transport by public means to the customer’s place and for assembly. IKEA has strengthened the product base to connect flat-pack houses. This is aimed at reducing the prices for first-time buyer taken home.
IKEA has managed to initiate family mobile which is practically enabled kind of mobile network phone. This phone is facilitated by T-mobile network in operation. The products of the company have been given a unique naming formula which is specifically of the Swedish origin. These names are based on unique naming system that was designed by IKEA with an international expert in naming with furniture enthusiast (Berggren 45-7).
The unique identification of the company with the branding and logos, makes the design of its products so unique and this makes the customers to rely on the products because of their maintained identity. The strong production origin of IKEA in Sweden and with stable supply of wood origin, makes its production continuous and with advanced technology of mobile network and calogue communication implemented by the IKEA and seveal outlets,this because the shared objectives throughtout the business with the technology of franchising and reaching a large population.
The corporate structure
The arrangement is composed of two key parts which are operations and franchising. A good number of operations entail store management, design and manufacture of the products. Supplies as well as purchasing of functions are carried out by INGKA holding, which is a private and profit oriented company. The stores are located in over 66 nations and only two hundred and thirty five are taken care of by INGKA holding. The remaining stores which are around thirty are effectively and efficiently controlled by franchisees that are outside INGKA holding. The use of a managed network enhances sharing of information within the various stores. As a result, the services are managed in the most effective way (Ogolla 78).
The introduction of GIS as a system for wood sourcing has really helped in determining the region of wood origin, resource forest data availability in regional level. The developed database by use of ArcView 9.2 software helps in tracing the origin of wood and for decision support management. There is information tracking about the territorial divisions for defining the wood origin. This has made it possible for IKEA to have a good and a well informed database which contains all the information about its suppliers because it deals in large retailing of home products.
In conclusion, it is important to note that the use of Information Technology has pIayed a major role in ensuring that IKEA attains its set objectives. The company should therefore explore other possible channels that will ensure that the level of I.T. is fully attained and embraced. This will act as a way of ensuring that the company remains one of the top suppliers of furniture products.
Berggren, Christopher. Work organization in the Swedish auto industry. Cornell: Cornell University press, 1993.
Ogolla, George. Introduction to Marketing. Pennsylvania: Prentice Hall, 2009.