IKEA

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Recommended: Business practices in ikea

IKEA still operates under the same vision and business idea: “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 will be able to afford them” (IKEA, 2014). Currently, they are focusing on sustainable growth through three growth areas: quality products at low prices, having a positive impact on both people and the planet, and personal growth of their employees (IKEA, 2014). The IKEA Groups total sales in 2013 were EUR 27 billion (IKEA, 2014). They now have 298 stores in 26 countries, including 49 stores in North America (IKEA, 2014). Stichting INGKA Foundation is still the owner of The IKEA Group (IKEA, 2014). The IKEA Group’s current President and CEO is Peter Agnefjäll (IKEA, 2014). The company still has a focus on working towards a more sustainable future (IKEA, 2014).

IKEA’s key competitive advantages are its low-cost structure, corporate culture, DYI approach, added amenities, brand image, and strong focus on sustainability (Ferrell & Hartline, 2011). Because of IKEA’s low-cost structure, IKEA is well positioned in today’s unpredictable economy (Ferrell & Hartline, 2011). The Swedish design of their products has a modern look that remains on trend (Ferrell & Hartline, 2011). In recent years, the company has changed its strategic focus pertaining to customer service. They now offer the ability to purchase their products online (IKEA, 2014). This provides consumers an easy and convenient shopping experience (Ferrell & Hartline, 2011). With that, consumers now have the ability to comparison shop (Ferrell & Hartline, 2011).

I believe both value and image have provided growth ...

... middle of paper ...

...their recent addition of online sales, I do not believe they will be strongly affected by their lack of customer service. IKEA’s consumers expect a low price for a quality good. If IKEA adapted to fit local tastes and offer more customers services in all of their markets, that low price expectation could not be guaranteed.

References

Eckhardt, G. M. (2005). Local Branding in a Foreign Product Category in an Emerging Market. Journal Of International Marketing, 13(4), 57-79. doi:10.1509/jimk.2005.13.4.57

IKEA (2014). Retrieved from http://www.ikea.com/us/en/

Ferrell, O.C. & Hartline, M. (2011). Marketing Strategy. 5th edition. South-Western/Cengage Learning.

Ofir, C., & Simonson, I. (2007). The Effect of Stating Expectations on Customer Satisfaction and Shopping Experience. Journal Of Marketing Research (JMR), 44(1), 164-174. doi:10.1509/jmkr.44.1.164

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