Ikea Business Model

Nowadays it is possible identify IKEA with the idea of providing a range of home furnishing products that are achievable to many people. It’s very important identify the significance of sourcing, packing and distribution in this company.  See video 1, minutes 4.19-5.35.

“The IKEA Concept exists in every part of our company, from design, sourcing, packing and distributing through to our business model. Our aim is to help more people live a better life at home.”

Video 1. Inside Ikea. Source: “How do they do it – Ikea”. Youtube. <>. [Accessed: 03/09/2016].

Vision and business idea

Ikea form long term partnerships with supplier, optimizing highly automated production and producing large orders. They design their products often on the factory floor using creativeness and team building. See video 2, minutes 1.51-3.08.

“To create a better everyday life for the many people.”

Video 2. Ikea: generating value. Source: “Life at home – where our vision begins”. Youtube. <> [Accessed: 03/09/2016].

Decision Support System (DSS): Computer Integrated Manufacture (CIM)

The strategies of Ikea are possible with the Decision Support System (DSS): Computer Integrated Manufacture (CIM):

  • Automated version of the manufacturing process, and
  • Product design and process, planning and control, and the manufacturing process are replaced by automated technologies.

This production methodology allow integrated systems and dynamic flows through the company. For a CIM example see video 3, 0.14-1.00.

Video 3. CIM example Source: “CIM – Computer Integrated Manufacturing training system by Lucas-Nuelle”. Youtube. <> [Accessed: 03/09/2016].


About the IKEA group – IKEA. IKEA /US/EN. Available at: [Accessed March 9, 2016a].

The IKEA Concept – IKEA. IKEA /US/EN. Available at: [Accessed March 9, 2016b].

Arjonilla Domn̕guez, S.J. & Medina Garrido, J. ̌Aurelio, 2010.La gestin̤ de los sistemas de informacin̤ en la empresa: teoría y casos prc̀ticos, Madrid: Pirm̀ide.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s