IKEA is a world famous furnishing company known for selling Scandinavian-style furniture and other home-based goods. The company has over 230 stores, with operations carried out in over 42 countries with well over 70 000 employees. The stores themselves can occupy 410 million shoppers per year. It is a Swedish based company built on the idea of offering a wide range of well-designed, functional home furnishing products such low prices, that a majority of people will be able to afford them. The IKEA group is currently solely owned by the INGKA Foundation through a holding company, unlisted on any stock exchange.
Customer service is the most important factor in every business. With an online service the supplier could provide an improved customer service. As the customer enters the website they could be greeted by a pop-up chat window. Many websites now provide an online chat, where the customers could chat with a customer care executive and clarify all the doubts about the products or any other details. Even the customer could contact the customer service executive through phone which is a 24x7 service. Making customers happy is the important factor for improving the business and to gain benefits. All these customer services could not be provided if the Internet is not being utilized.
According to Katawetawaraks & Wang(2011) online shopping has facilitated the presence of many foreign companies looking to boost their brand visibility . Locally, buyers have easy access on information and products that may not be physically available in their home countries(Oreku, Mtenzi, & Ali, 2013).Unlike conventional stores, online shops are open 24 hours a day throughout the year(Gong, Stump, & Maddox, 2013). Moreover, consumers from the comfort of their homes can log in at any time throughout the world and buy products and services at their convenience. On the other hand, online retailers who do not have physical presence can gain local and international exposure whilst reducing transactional costs(Laohapensang, 2009).
IKEA is a Sweden-based international company that sells ready-to-assemble pieces of furniture. The foundation dates back to 1926. And now IKEA is one of the largest furniture retailers in the world. Deep understanding of leadership is the basis of company’s success.
The internet offers the potential to achieve a global market success for any business. Businesses that go online increase their opportunities to reach their target market and is cost effective when compared with other forms of marketing. It creates opportunities, benefits and challenges for a business but in the long run is worth it for the added publicity and hopefully profits. Going online has benefited many organisations including Tesco PLC. I will be using Tesco as my example of the benefits, opportunities and challenges for a business by using the internet. Tesco has operated on the Internet since 1994 and started an online shopping service named 'Tesco Direct' in 1997 which
Online purchasing is becoming more and more practical thing for contemporary customer. It is explained by high internet penetration in every country, lower cost than in retail network, door to door delivery. Internet plays an important role nowadays; therefore it creates a new market, which sometimes is quite difficult to measure. Online shopping is different from the B&M shopping due to the fact that there is no physical presence of goods, from other standpoint internet is able to sell way more services and motivation and decision making process directly connected to the feedbacks.
According to Turban and King (2003), internet technology renders retailers an additional channel for branding, transactions and customer relationship management, the adaptation of which may drive down retailers’ transaction costs, and ensuring faster and higher quality of customer interactions, resulting in enlarging the existing markets and consumer base. M&S realizes this and have tried to sell clothing via high street stores as well as via internet though they have experienced cost cutting, rationalisation and management changes in order to revive their business in recent years. Internet technology might enable sustainable competitive advantage, but problems remain on how to physically organize their online retail operations.
Many long term businesses are faced with extinction these days. One of the major reasons that some of these businesses are failing is due to little or no internet presence. People are relying more and more on the internet to make their purchases as a more convenient model of shopping which can save time, and often money as well, in the search for their preferred item. A business looking to remain competitive and relevant in today's market will need to integrate internet sales into their current business model. Spear-heading this change can be a daunting task without a clear way to implement the change. This paper will discuss two change models to assist in the process of making the transitional change for both short term and long term success.
Before the start of the internet, all businesses were staged in physical locations with brick-and-mortar buildings. As the World Wide Web grew, many entrepreneurs utilized it to increase profit and effectiveness. Now, many businesses reside solely in digital space, with no corresponding physical location. With the internet’s rise in popularity, many firms are turning towards creating websites as the main interaction between the business and the customers. Unlike traditional brick-and-mortar businesses (BMB), internet-based businesses (IBB) are based in online real estate. This difference in a firm’s location leads to different situations the businesses must face. IBBs behave differently in the economy than BMBs, with differing growth factors, challenges, and advantages, which may make IBBs a better option for many startups and the current trend of startups being towards IBBs.
Advertising is done via online catalogues, social media, email, website and a virtual and physical showroom to reach customers. IKEA establishes their brand presence using a transactional e-commerce website enabling customers to search for products, place orders and make payments via a simplified online checkout process. This has enforced their sales revenue model (Chaffey, D. 2015).
IKEA is a worldwide expanded company. They enlarge their showrooms to North America, Europe, Australia and Asia. Customers can check out IKEA’s product in the show rooms and also by checking out IKEA’s websites to get their selected products to be home delivered. This is an effective way of selling their products as customers who are busy with their own work can purchase their preferred
The vision of the IKEA Company is “To create a better everyday life for the many people”. They have also their business idea which is “to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”.
IKEA is a manufacturer of home and business furnishings who offer interior furnishing products to consumers in several countries across the globe. Before IKEA plans on expanding and entering any new market, they are required to obtain a clear understanding of what consumer behaviour and requirements are in that particular market. There are basically two types of Markets which include Consumer Market and Business Market.
Persistence is a prerequisite to success in online business. There is no way you can make money online if you are not persistent. Training yourself to become persistent, despite all eventualities, is one important factor that you need to learn right from the day you venture into online business. It should be understood right from the start that making money online takes time. Do not be fooled by those scams who promise you heaven and who make you think that you can make thousands of dollars overnight. To benefit from online business, it 's really dependant upon several factors among which include skill, knowledge, effort, time, will-power and persistence.
On internet, it is possible to find the same product but cheaper price. When products and services growth rate increase, the number of online seller increases as well. And for business plan to increase number of store will be changed to do online service following the trends