IKEA was founded in Sweden in 1943 by Ingvar Kamprad. IKEA is a home furnishings retailer unlike any other. It was founded on the basis of low cost and it offers modern and stylish furniture for all types of people at affordable prices. IKEA’s unique way of shopping, store layout, and do-it-yourself approach continues to help maintain their popularity. 1)Given the SWOT analysis presented in the case, what are IKEA’s key competitive advantages? What strategic focus should the company take as it looks to further expand into the U.S. market? Given the SWOT analysis presented in the case, IKEA definitely has some key competitive advantages. All of the strengths mentioned in the case are very beneficial but the strongest I feel are the …show more content…
The philosophy states “ Our vision is to create a better everyday life for the many people. Our business idea is to offer a wide range of well-designed, functional, home furnishing products at prices so low that as many people as possible can afford them.” IKEA needs to create products following this motto but have these products molded to the tastes and styles of the U.S. population. The prices must still be low but IKEA must force the message that even though the price is low that does not mean the quality of the product is poor. This message will be key for expansion in the U.S. to be a success. IKEA must maintain their shopping experience as that is a strong competitive advantage, and tweak their philosophy so it fits the American lifestyle. If they do this then they will have success in expansion. 2) What factor is the biggest reason for IKEA’s growth and popularity: value or image? What can IKEA do to sustain growth after it loses some cache? Value and image are equally important for being the biggest reasons for IKEA’s growth and popularity. Value is important because for the majority of people this is their main criteria. The value the people receive from IKEA are portrayed through the cost, quality, and style of the product. These three terms if done correctly will continually help IKEA’s growth and popularity. The image of IKEA is what helps IKEA stick out amongst its competitors. The image is one of a
* 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
IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international
Also known for product innovation, use of renewable materials (75%) and “smart” use of raw materials (90% recycled/reclaimed waste products in energy production) IKEA has promoted its growth and popularity primarily related to branded image. (http://businesscasestudies.co.uk)
Established in Sweden in 1943, by a 17-year-old Ingvar Kamprad, IKEA is a multinational group of companies that focus on ready-to-assemble furniture, appliances, and home accessories. The very first IKEA store named Möbel-IKÉA, opened in Almhult, Smaland(Möbel means “furniture” in Swedish), to currently, September 2016, have 389 stores in 48 different countries. With the 389 stores, IKEA successfully creating over €30 billion and over €3.5 billion net profit with the continuous development and expansion.
IKEA is the world’s largest retailer of home furnishings. It strives to provide simple, functional, modern, and useful products at affordable prices to as many people as possible in as many places regardless of their geographical location. IKEA concept is implemented from the start of idea, implemented into the design, manufacture, logistics, sales and final assembly of each product. IKEA was developed by Ingvar Kamprad from southern Sweden, where people are known for surviving and making the most from limited resources.
IKEA has achieved success by offering customer value for functional designer products. The cost conscience attitude has worked in favor for IKEA amongst its target market.
IKEA founded by 17 year old Ingvar Kamprad, in Sweden. The company's name is drawn from the initials of Ingvar Kamprad, Elmtaryd (the farm where he grew up), and Agunnaryd (his hometown in Småland, southern Sweden).
IKEA’s vision is to design a better life at home. Making it affordable as possible so that many people could have admirable furnishing. IKEA use function, quality, design and value to obtain their customer needs. IKEA learn to synchronise the contingency of the supplier and needs of the customers. Using that strategy to sustain the low prices. In order to gain a good condition of a product, IKEA go in for highly automated production. Together with mass producing and keeping long-term relationship with the supplier, IKEA is able to prolong their vision and aim to serve their customers. (Ikea.com/sg)
IKEAs brand image is built on their long term strategic focus to produce products from sustainable materials in an aim to care for the environment and earth’s natural resources. This aligns with IKEAs vales to promote social, environmental and economic development. IKEAs concept of customers shopping for mass produced, standardised products in a ‘self-service’ environment allows for cost efficiency
A different approach about Ikea’s success is given by Sara Kristofferson in her book Designed by Ikea, London 2014. In the first chapter, Kristofferson refers to the relationship between the swedish goverment and Ikea.
IKEA’s clear vision is to offer well designed and useful home furnishings at low prices so many customers will be able and capable to afford them. IKEA designs exclusive products that meets firm requirements for task, well-organized delivery, excellence and has a good impact on the environment.
As pointed out in Ikea's mission statement, the company is in business to produce high quality products at a low cost. This would support a
Ikea is a renowned global furniture retail shop that was established by Kampard Ingvar in 1943(Bartlett, 2006). The business began as a grocery and stationery of mail order and later turned into furniture as its main business. Currently, it has over 292 branches in 34 countries globally. Ikea has been operating on the motto “better life for everyone”. Ikea focuses basically on good quality of household furniture and low prices of goods. Ikea strives to build a good social benefits structure and good customer care.
Ikea’s low cost pricing strategy was a key to their rise to success. It started in 1951 when Ikea abandoned all its other catalog products to focus solely on low priced furniture. In the beginning, Ikea’s furniture was produced by local manufactures. The pivotal point in Ikea’s history came in
“The IKEA vision is to create a better everyday life for many people. We make this possible by offering 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”