Book Review: Great Ikea! A Brand for All the People

* IKEA’s low cost structure has been the very core of its success. It’s low-cost and high-quality strategy fits with the current state of the economy. Offering convenience factors within IKEA’s stores would fit well with IKEA’s low cost structure. It maintains its low-cost business model by creating a different furniture shopping experience. IKEA supplies customers with all possible materials needed to complete their shopping when they enter the store (that are, measuring

As explained in the “bargaining power of consumers”, it is hard to substitute the products that are offered by IKEA. This is further intensified by the fact that IKEA has formed a brand perception that makes it stand out amongst its

In IKEA, the Unsolicited Proposal came from many directions. Firstly, in 1952 the boycott by Swedish retailers to IKEA, obliged to IKEA to seek new sources of furniture. Second, the Swedish furniture market demand fall by the early 1970s. Third, IKEA had identified as we said before two big markets to

The services and products offered by IKEA provide value to its customers in various ways. For one, the products and services are very affordable. The products and services are not priced highly and therefore, the average customer can enjoy them. At the same time, the products are of high quality. From IKEA’s slogan “low prices but not at any price”, it is clear that the company prices its products lowly but that does not mean that the quality is compromised. IKEA satisfying its customer’s needs through providing them value for their money as they provide quality products that will last for a long time, and at affordable costs. The fact that the company has set the minimum acceptable standards for its wood, implies that it is also keen on quality and on the environmental impact of its action of making furniture ( Edvardsson, Enquist & Hay, 2006).

In 1951, to reduce product returns, he opened a display store in nearby Älmhult village to allow customers to inspect products before buying. It was an immediate success, with customers traveling seven hours from the capital Stockholm by train to visit. Based on the store’s success, IKEA stopped accepting mail orders. Later Kamprad reflected, “The basis of the modern IKEA concept was created [at this time] and in principle it still applies. First and foremost, we use a catalog to tempt people to visit an exhibition, which today is our store. . . . Then, catalog in hand, customers can see simple interiors for themselves, touch the furniture they want to buy and then write out an order.”2 As Kamprad developed and refined his furniture retailing business model he became increasingly frustrated with the way a tightly knit cartel of furniture manufacturers controlled the Swedish industry to keep prices high. He began to view the situation not just as a business opportunity but also as an unacceptable social problem that he wanted to correct. Foreshadowing a vision for IKEA that would later be articulated as “creating a better life for the many people,” he wrote: “A disproportionately large part of all resources is used to satisfy a small part of the population. . . . IKEA’s aim is to change this situation. We shall offer a wide range of home furnishing items of good design and function at prices so low that the majority of

IKEA is one of the most successful furniture retailer who dedicated to sell flat pack of furniture, accessories, and bathroom and kitchen items around the world. It is well-known as a global phenomenon and its famous statement that “Our vision is to create a better everyday life for the many people”. IKEA has a clear and consistent concept in providing low price, value for money furnishings with a full range of choice. Its philosophy in the core value of cost efficiency along with IKEA's competitive strategy, which influences the performance objectives of operations in company. IKEA shows an excellent performance in achieving cost competitive advantages

In this business report on the global retail business IKEA, it will cover the nature of business, influences on operations, operation processes, operation strategies and how the business can sustain competitive advantage. IKEA was founded in 1943 by Ingvar Kamprad in Älmhult, Sweden. The business established after and with the money his father awarded him for succeeding in his studies, Kamprad sustained a cash inflow by selling pens, wallets, watches, picture frames, table runners, jewellery and nylon stockings at reduced prices to customers. Although, later on in 1958, IKEA was introduced as a leader of Swedish Furniture Company as they started to produce local furniture by the Swedish local manufacturers, which gained positive attention from their customers. Eventually, developing flat packs of furniture for storage and self assembly, making their signature style of IKEA and turning the small business into a global sensation.

IKEA serves a huge product range to the customers. The products of IKEA are well designed and structured, functional products. The company serves its products globally. IKEA’s customers can find the same products in any IKEA store and they can trust their quality. With the vision of creating an everyday life for people, IKEA finds the balance between function, quality, design and price. With merchandising the cost efficient products to the customers, IKEA does not compromise from the profit margins. Having a well structured business model, IKEA can decrease the costs of the products and can serve a competitive price to the customer. While doing that, IKEA creates long term partnerships with its suppliers. The long term partnerships makes lowering costs easier for IKEA since they can easily negotiate about prices. Another advantage about lowering costs is cheaper unit costs. IKEA makes huge amount of purchases so they can decrease the unit costs through the economies of scale principle. Creating better business relationships helps IKEA to make their businesses

IKEA furnitures, privately held, international, low-cost home products are an inevitable part of interior furnishings at many houses in the world. IKEA furnitures are marked for its modern utilitarian design. The company has 260 retail outlets around the world and more new stores are on the line to be opened in 2008 (Dhanyasree, 2007).

IKEA is the largest furniture chain in the world, and in 2011 the Swedish company operated over 270 stores in 25 countries. In 2011 IKEA sales soared to over $35 billion, or over 20% of the global furniture market. Most of its stuffs believed IKEA will massive growth throughout the world in the coming decade because IKEA could provide what customer wanted: good design, and good made contemporary furniture with an affordable price. In one word, IKEA’s global approach focuses on simplicity, attention to detail, cost consciousness, and responsiveness in every aspect of its operations and behavior. (Jones, 2013)

IKEA aims to deliver all five of its brand attributes including low price, sustainability, form, function, and quality. However, Sykes acknowledged that low price is the first driver in product development. Unlike the most companies’ product development process that starts with consumer trends or competitive whitespace, IKEA starts with a target price point. Doing so keeps IKEA true to their commitment to providing better everyday life for the many people. Sykes said: “True innovation comes when you design quality furniture that’s affordable by

Ikea’s approach to ‘DIY’ has been a massive success and they’ve built a strong based on this unique experience, and best of all, its affordable! Due to their approach to business Ikea is “The world 's largest furniture retailer by sales” (Mollnos). Ikea’s furniture allows room for creativity within the space being designed. Their affordable prices are ideal for the average consumer. Ikea has a fruitful way to bring in a younger crowd based on the success of their Instagram account. The account shows rooms transformed from dull and cluttered to organized and inviting. Being able to view real average people who have transformed their homes with affordable, modern furniture is an excellent move for Ikea. When shopping at an Ikea store, the products displays are meaningful and products that coordinate are placed together. This proves to be successful when additional furniture is purchased.

IKEA established itself as the largest furniture retailer in Sweden by the early 1970s by reinventing the wheel of furniture manufacturing at that time. Majority of furniture manufacturers in Sweden produced expensive products with designs that were basic or passed down generation to generation, additionally other manufacturers stores where located in downtown congested areas. IKEA’s strategies which consisted of low cost low priced furniture, brave intricate designs, self-assembly,

IKEA is a Swedish multinational group of companies founded by then 17-year-old Ingvar Kamprad in 1943, that design and sell self-assemble furniture like chairs, tables, beds, appliances and home decorations. Since January 2008, IKEA has been ranked as the world’s leading furniture retailer. IKEA has been established by their high quality, well-designed and functional products at affordable prices and they offer great variety of merchandises. Cost conscious approach is followed by employees and managers, which had been started by the founder. Their companies require down-to-earth, straightforward people who want to help accomplish the IKEA vision- “ To create a better everyday life for the many people ”. IKEA’s human resource management

I will write this essay about my experience at the IKEA store in my hometown, Uppsala Sweden. The store is one of the biggest stores in EU and not that old either so it’s a little different from other IKEA store in other cities nearby. Just want to say how I like the costumer strategy IKEA is using, there markets in such a way that everything you have at home could improve their products. Their furniture is adapted simply and quality manner. Their audiences are primarily families, students and newly married couples because their products cheap and they are very easy to put and build together. People around here in Sweden is saying that Ikea family is the “Sweden's best home-loving loyalty club” that is there loyalty program, are you a member of Ikea family gives you more of IKEA and always a better deal. And if you leave your email address to get their newsletter and be the first to take advantage of