Value Chain-Ikea

This assignment had to be written for the class of Management and Organizations at Stenden University, course IBMS, first year. We had a group of 6 and had to work it out together. We were enjoying getting into the world of IKEA, the world’s most furniture store on the market.

Wal-Mart 's third phase of its marketing plan to market and sell furniture in the new Wal-Mart furniture stores will describe the attributes of its product and services in greater detail than in the first two phases presented by Team B. Furthermore, the third phase will describe the pace at which Wal-Mart 's newly proposed product line will move through the product life cycle as well as the factors that will likely impact its movement. Team B will be laying out the product life cycle and the impact it has on the marketing of the product. This paper will identify the positioning and differentiation strategies for Wal-Mart furniture stores. Additionally, the paper will identify the appropriate

IKEA pays much attention to its IHRM management, applies innovative HR practices and tries to benefit from development of each individual within the company. The company is regarded as an attractive employer and has gained several prestigious awards in different countries (e.g. UK's Best Workplaces - Large Category, 2012).

Nevertheless, the vertical value chain created by Aldi benefits the company’s corporate strategy. To be a local supplier,

The product life cycle concept derives from the phases through which a product undergoes, from its introduction, to its growth in the market, to the maturity it attains in that market, to the very last stage of declination. The

Strategic alliances could reduce the complexity of logistics if IKEA is able to find a reliable partner in this field.

Product life cycle refers to the stages that a product. Changes in demand for the product is the factor that delineates the changes from one cycle to another (Daft & Sanders, 2012). The typical product life cycle has four identifiable stages;

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

IKEA is considered to be a low cost, high quality producer in the furniture industry, therefore it is important to

IKEA is a worldwide expanded company. They enlarge their showrooms to North America, Europe, Australia and Asia. Customers can check out IKEA’s product in the show rooms and also by checking out IKEA’s websites to get their selected products to be home delivered. This is an effective way of selling their products as customers who are busy with their own work can purchase their preferred

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)

Based in Denmark, IKEA International A/S is one of the world 's top retailers of furniture, home furnishings, and housewares. The company designs its own items, and sells them in the more than 140 IKEA stores that are spread throughout approximately 30 different countries worldwide. The company also peddles its merchandise through mail-order, distributing its thick catalogs once a year in the areas surrounding its store locations. IKEA is characterized by its efforts to offer high-quality items at low prices. To save money for itself and its customers, the company buys items in bulk, ships and stores items unassembled using flat packaging, and has customers assemble many items on their own at home. The company is owned by

Both of them are important to operate a business. The next one will be the process. The first process is the shop floor set up which is extremely important for IKEA. It can show the customers the advantage of the products and to let customer enjoy the process of buying furniture. Another process is the staff training. IKEA have to train the staff to have some professional skill and knowledge because the staffs are representing the company. Then, we can go to another action – outbound logistics. It means the good and service that IKEA provide. They provide the goods delivery service and installation service. This is important for customers because most customers do not know how to install the furniture. Sales and marketing is another primary action. For IKEA, it will be the TV advertisement, annual catalog, internet and the showroom with live demonstration. In fact, this marketing channel is the reason why IKEA is so successful in selling furniture. The last action is the service. They are now providing hotline service. They also have design consultant to help the customers. And disposal of old furniture is also a very important service.

IKEA is a manufacturer of home and business furnishings who offer interior furnishing products to consumers in several countries across the globe. Before IKEA plans on expanding and entering any new market, they are required to obtain a clear understanding of what consumer behaviour and requirements are in that particular market. There are basically two types of Markets which include Consumer Market and Business Market.

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,