Future Objectives Of The Future Objectives Of IKEA

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Future objectives

IKEA to maintain their leading position will keep diversifying their products offerings always based on the “democratic aesthetic”. They will continue offering aesthetic, quality and low-priced products. Moreover, they will expand IKEA concept by opening new to stores to make their furniture available for everyone. For instance, from now to two years IKEA planned to make available to 80% of French population a store at less one hour of road. They will focus at developing its online activities to compete with the pure players. Now, most of their products are available on the IKEA website. The group has developed the “click and collect”, which is available in mostly stores. To accelerate the e-commerce transition IKEA planned to integrate external operators
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Vertical integration that managed IKEA is to have 30%-50% lower prices than traditional distributors and strengthen their differentiation advantage.
The firm’s forward integration is about integrating the supply chain downstream. Therefore, many IKEA distributors have IKEA as their unique or principal customer.
Yet, the most important form of integration of Ikea is the backward integration in order to expand their businesses and increase profits. Indeed, the firm has purchased a forest to have better control over their supply chain. Owning this forest twill help them enhance the product quality in its core business and avoid pauses in the supply chain. In addition, it will help them overcome environmental issues.
Moreover, the vertical integration helps them improving their scheduling as it ensures constant supply of inputs, and allow them to obtain more bargaining power over suppliers.
In addition, the vertical integration allows Ikea to produce in Poland and other low-priced countries which make them reduce their production costs and lower their
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