KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER
IKEA’s product design and PROPOSITIONS RELATIONSHIP SEGMENTS
BUSINESS MODEL CANVAS
development creates innovative
and simplistic designs, although IKEA has a self-service
the most important step is their, relationship, there is no direct
IKEA has created value by communication with customer
flat-packed, that makes it easier
and cheaper to transport. improving everyday life with , they walk through alone,
IKEA’s HR, Marketing and affordable products. pickup their products at the
Financials are also key IKEA also offers services such as, end, in the warehouse, and
IKEA has approximately 1,600 activities apart from the room experiences, the store have the chance to get food
suppliers, and about 1,000 of those continuous production. layout gives customers space to or coffee, which is also self IKEA has mass market targeting,
are home furnishing suppliers. The see and walk around before buying service. their low prices, target from low
remaining suppliers operate in it. Augmented reality for planning
income students, to middle income
various industries, including and even a restaurant / cafe.
households, furthermore new
components, food, transport and IKEA has also focused on
sustainability goals attracts eco-
other services (IKEA, 2024) KEY RESOURCES sustainability, an evolving trend, CHANNELS conscious customers.
Franchisees to develop new store IKEA has control over their “IKEA representative expressed it:
in new markets. Sustainability can't only be for the Physical stores, which include
entire supply chain. They
rich or for the thick wallet” their unique store layout
design, manufacture and sell
incorporating it into their existing including the show rooms, and
the products themself.
products. self service of picking up the
IKEA has 476 stores in 63
flat-packed products.
marktes.
Online store, which provides
Swedwood, manufacturing
home delivery and click and
arm focused over their raw
collect services.
materials.
COST STRUCTURE REVENUE STREAM
IKEA has low production costs due to economies of scales and flat-packed products, IKEA’s main revenue stream comes from selling their manufactured products.
reducing transport and storage costs. Other revenues include, the Ikea restaurants/cafe, the planning services, transport
IKEA model focuses on minimising costs, their control over the supply chain allows services, assembly services.
them to control the raw material, production, transportation costs, making them cost- IKEA is also a franchise, Today, all the IKEA stores (except the IKEA Delft store in the
driven. Netherlands, which is owned by Inter IKEA Systems B.V.) operate under franchise
agreements. (IKEA,2024), that makes a 3% annual fee of net sales.
