Operation Management

2196 Words9 Pages
How might IKEA’s operations design is different from that of most conventional furniture retail operations? Discuss the operations design while analyzing the positive contributions towards customer satisfaction and company’s growth. 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. Unlike other convention furniture retail, IKEA stores are located at the most strategic location in…show more content…
Therefore IKEA operation design is relatively different from other conventional furniture retail store in term of the design of its store, buying process, products, services and facilities provide. IKEA’s cost leadership strategy has set the company apart from other conventional furniture retail stores making it one of the world largest furniture manufacturers. Critically analyze the possible key problems in running an operation like IKEA. IKEA’s operation design may also face possible key problems although the current operation design seems to work well for the company. One of the key problems in running an operation like IKEA will be the nature of the operation design that based on self-service concept. The problem arises when customers describes the store layout resembles a “rat maze“ (Zed,2012). It would be troublesome for some customers to follow the instructions on signboards, brochures and catalogues. Moreover customers may feel frustrated and disappointed when they when the shopping experience is not up to their expectation and worst when customers were unable to assemble the furniture at home. Secondly IKEA’s ‘cost conscious’ concept offering furniture at a price lower than expected may create faults thought by customers that the quality of furniture offered by IKEA may be inferior compared to other higher priced furniture offered by other furniture

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