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UNIVERSITI TEKNOLOGI MARACAWANGAN SELANGORKAMPUS SHAH ALAM54000 KUALA LUMPURFACULTY OF COMPUTER AND MATHEMATICAL SCIENCESFakulti Sains Komputer dan MatematikISP 530INTRODUCTION TO DIGITAL BUSINESSCASE STUDYFORIKEA’S COMPANYNAMEMATRICS CARDUSAID BUKHARI BIN SULAIMAN2020976867UMMI BALQIS BINTI MUSA2020975443MUHAMMAD ZULKIFLI BIN ZAINI2020982339RYSHMANOVA KARINA2020747325GROUP : CS2643AFOR : PROFESSOR MADYA KALSOM BINTI NASIR1 | P a g e
CONTENTS 1.Chapter 1: Organization Profile3-72.Chapter 2: Digital Business Implementation 2.1: Brief description of history and establishment of the digital business2.2: Major operations involved with digital business2.3: Benefits from digital business implementation 2.4: Challenged experienced 8-103.Chapter 3: Digital Business Analysis3.1: Description of the Business Models for the digital business3.2: Description of the Revenue Models for the digital business3.3: Description of digital business strategy analysis3.4: Description of digital business supply chain management and e-procurement11-194. Conclusion 205.References / Appendix212 | P a g e
CHAPTER 1ORGANIZATION PROFILE1.1IKEA1.1.1History and establishment IKEA is a European multinational group that designs and sells ready-to-assemblefurniture kitchen such as beds and desks, appliances and home accessories. The company is theworld’s largest furniture retailer. Founded in 1943 by 17-year-old Ingvar Kamprad in Sweden.He took the first letters of his name and his hometown to make the name of IKEA. As of June2019, there are 433 IKEA stores opening in 52 countries. By 1958, the first IKEA store becamean expanded establishment at the Almhult. The initial concept behind the store was to have a spotwhere customers could come to see furniture set up by IKEA. Kamprad experimented withadding restaurant to the store so that when shopping, customers could relax and refresh. Therestaurant was successful and all IKEA stores became an important feature. IKEA opened theirfirst store in Sweden in 1965. Most of IKEA’s stores and factories are owned by INGKA.INGKA is a holding company controlled by the Stitching INGKA Foundation, one of the 40wealthiest foundations in the world. The INGKA Foundation is controlled by five-memberexecutive committee that is chaired by Kamprad and includes his wife and attorney. Althoughmost IKEA stores operate under the direct control of INGKA Holding and the INGKAFoundation, the brand and idea of IKEA is held by a completely different Netherlands company,Inter IKEA Systems. Growing IKEA shop, including those owned by INGKA Holding, chargesInter IKEA Systems a franchise fee of 3% of sales. Nearly 70% of the stores located in Europe.INGKA received 90% of IKEA’s revenue in 2018. The best countries for IKEA are Germanywith 15% of sales and the United States with 14% of sales. The retailer added 19 stores last year,including its first store in India in Hyderabad. Ikea received 957 million store visits in 2018 and2.5 billion to Ikea.com. It offers roughly 9,500 products. IKEA’s supply chain management isone its solid sources of competitive advantage. IKEA has 1046 suppliers in 52 countries and 323 | P a g e
distribution centres in 16 countries. These resources are important to ensure capability to meet