Ikea As A Manufacturer And Retailer

* 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

Low prices are one of the cornerstones of the IKEA concept which attrack their customers to but their products. This low price strategy is coupled with

IKEA is a privately held, international home products company that designs and sells ready to assemble furniture such as beds and desks, appliances and home accessories. The company is the world's largest furniture retailer. Founded in 1943 by 17 year old Ingvar Kamprad in Sweden, the company is named as an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home parish. IKEA has 300 home furnishing superstores in 35 Countries and was visited by some 583 million shoppers. IKEA’s low priced elegantly designed merchandise displayed in large warehouse stores, generated sales of $21.2 billion in 2008, up from 4.4 billion in 1994. The fledgling company sold fish,

IKEA’s strategy mainly depends on its wide range of products that followed clear and detailed guidelines on range, quality, profile and price. The IKEA catalogue, which is distributed to homes in the area of IKEA stores all over the world at the end of August each year, is the main marketing tool in order to educate customers about the product line and help marketing communication to build relationship and inspire people to come to the stores. (UK essays, 2013)

The company is known for modern designs, in various appliances and furniture, and its interior design work with eco-friendly simplicity. Furthermore, the firm is known for its cost control, operational details, and continuous product development. These corporate attributes allowed IKEA to lower its prices, during a period of expansion.

IKEA’s vision is “to create a better everyday life for the many people” and its business ideas support the vision by “offering a wide range of well-designed, functional home furnishing products at prices so low

IKEA was founded in 1943 by a 17-year-old Ingvar Kamprad in Smaland, south of Sweden. IKEA formed its name from the founder 's initials (I.K.) plus the first letters of Elmtaryd and Agunnaryd, the farm and village where he grew up from a farmer to a businessman. Ingvar sold whatever he found could fill with a product at a reduced price under the brand name of IKEA

The IKEA group sells quality furniture at a low price, to maintain a strong competitor. For that, the company has to try to cut cost without losing quality in the products that it sells.

IKEA focuses on the low-cost leadership strategy due to the beliefs and vision of the creator of the company, Ingvar Kamprad. IKEA puts into action this low cost strategy by buying in bulk and selling it back to the consumer at a low profit, so that the savings is passed on to the customers who purchase their goods. Now, we must also remember that the low-cost leader strategy has two different areas in which it can emphasize; broad and narrow, the narrow scope has a limited product range whereas a broad scope has many different items. IKEA has a broad scope in which allows it to reach a larger target

IKEA has the radical innovation and groundbreaking core concept of the firm. They offer the disassembled furniture which enables much large stock and inventory at every retailer, which means customers can actually possess the product immediately at the day of purchasing. Beyond that, the IKEA 's sales clerks at the stores can pay more attention on in-store displays and efficient- processing line but not assemble and reassemble the large furniture and products inventory.

Even though there have been many changes in the economy Ikea has been able to regulate the changes with their success in obtaining the lowest production prices. The company continues to provide high quality furniture that goes with their original concept of stylish furniture for a low price. Ikea offers all kinds of products that cater to most any lifestyle and budget. Ikea still mostly operates their business in the European market. Consequently, they are able to reach more customers in different countries based on the location of their production and distribution centers. Even with the many changes to the economy Ikea has managed to stay in business with their low pricing by developing different products that is in demand by

IKEA’s strategy towards its suppliers is that of a low production costs strategy. IKEA wants to sell its products at the lowest possible price therefore their

Being one of the famous brands for furniture, IKEA has its own operations design that had been proven successful based on the growth of the company throughout the years of business. IKEA’s vision is clear which is ‘to create a better everyday life for the many people’ and aims to offer well-designed and functional furniture at a very low price that as many people as possible will be able to afford them.

IKEA was founded in Sweden by Ingvar Kamprad in 1943. IKEA has been established around the world in 26 different countries. Within these countries IKEA has a total of 303 stores. This business is effective in adapting to change through the use of the four key business functions; operations, finance, marketing, and human resources.

Although the company does not deliberately use demographic and psychographic variables to segment its customer base, IKEA products seem to appeal particularly to people in their twenties and thirties. In order to expand the product line further into other life cycle stages, the company is trying to grow with its customers by adopting a policy of offering products that cater for families with teenage