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Ikea business practices
Ikea business strategies
Marketing plan in ikea
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Introduction According to Chinese officials, the living standards improved steadily during 1980s and 1990s, also, a plenty of families recent years are prone to have their own homes as soon as they can afford. (Zhan, 1998) Under this condition, the competition among the furniture market becomes more and more fierce. In today’s market, some sellers provide more kinds of variable furniture with colorful appearance or high technology. Also, there are some companies provide the commodities with a lower price. However, these are all short-term attractions because all the companies can copy these tricks so it does not have a high distinction degree. Then, how to use innovative methods to stand out from the competition is a big problem. The self-service offered by IKEA solve the problem properly. IKEA is a Swedish furniture mart run by a 17-year-old boy Ingvar Kamprad in 1943 and entered China in 1998. The self-service provided by the firm is very attractive and really helpful for the problem mentioned before. This essay will divided into four parts generally. First, it will give an introduction on self-service and the operation process including distribution channels, position and finance. The second part will elaborate the theories applied in the service. Next paragraph will analyze the advantages and disadvantages of the service. Finally, some advice will be given to the service according to the present and future situation in China. The Operation Process in IKEA The self-service in IKEA is reflected in several ways. When the customer first enters the market, he can take a brochure; a ruler made of paper and a pencil for free so that he can get knowledge of the products and record the length of the furniture. The shopping area is decorated as numbers of model houses; it has children’s rooms, living rooms, bedrooms, washrooms and kitchens. All the products IKEA sales are displayed in the show area. As it shown in the picture 1, the consumer can follow the trace that IKEA provide and he can visit all of the rooms.   Picture 1 Picture 2 Different from the shops in China which set up a signal writes “no touch”, customers are welcomed to sit on those furnishings and feel them which make the “show rooms” exist as “experience rooms”.
Ikea is a Swedish company that provides furnished products throughout the world. Ingvar Kamprad founded it in the year of 1943. Its furniture is self-assembled thus allowing the company to reduce its expenditures and offer customers low prices in return. When segmenting a market, IKEA usually focuses on age, income level, and lifestyle. It aims to attract young, underprivileged individuals who look to buy furniture for the first time. An example of this would be college students; they are often confused, doubtful, and looking for something cheap. IKEA currently operates in twenty-seven countries including Korea, China, Sweden, and Netherlands amongst many others (IKEA.com). Although it is
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
Known as one the largest global home-furnishing retailers, IKEA currently has over 139,000 employees located in 53 countries and generates roughly 39.3 billion US dollars in annual sales (IKEA, 2014). Ingvar Kamprad began selling different types of items and founded the company in Agunnaryd, Sweden in 1943. Kamprad found that his greatest entrepreneurial opportunity was in furniture. Many households at that time were changing from receiving furniture that was handed down to desiring new, inexpensive, and stylish furniture. Kamprad was able to find a business opportunity to change the current social situation since a lot of the furniture was priced high at the time. He wanted to be able to offer his customers a wide selection of functional and well-designed furniture at a price many could afford (Bartlet & Nanda, 1996). Kamprad had a better understanding of what the customer desired and how to go about meeting those desires at prices that were lower than other furniture companies, in turn creating a competitive environment (De Kluyver & Pearce, 2011).
The purpose of this essay is analyze the case of IKEA, which has involved in the HR management. Meanwhile, choose two topics to identify the IKEA current situation, including training and development and cross-cultural management. From those two points, give some forward suggestions on the IKEA HR management practice.
The sources of IKEA’s successful entry into the furniture retail business were IKEA’s low prices and resilience. First, Ingvar Kamprad, the founder of IKEA, began selling furniture in his mail order company. Then he was faced with a social problem and turned it into a business opportunity. Since 1935, furniture prices rose faster than any other retail good at 41%. Kamprad responded by creating a line of furniture priced so that all could afford it. The present furniture cartel attempted to stifle Kamprad’s growth and success. The cartel banned Kamprad from selling directly to the consumer at shows, then managed to persuade the manufacturing cartel to stop supplying Kamprad with furniture. Kamprad responded by supplying elsewhere and now could charge even lower prices. IKEA’s success was due largely to low prices and Kamprad’s ability to capitalize on bad situations.
Bowell states that IKEA is establishing themselves “...as a leader in creating and running innovative sustainable places.” This means that IKEA is taking their job seriously. They want to be the ones to help and inspire their customers into following the methods of sustainability. The “People & Planet Positive Strategy” allows the customers individuals to learn about how they can make a change in their own lives by the implementation of products from the company. IKEA is in the process of adapting to the lifestyle of being environmentally friendly. It is necessary for them to become net-positive. Most appliance retailers do not maintain this type of
Each category will be analyzed using IKEA student info website, IKEA group corporate website, resources from University of Phoenix library and articles from magazines. The key questions that the author will address are
With the intensifying competition in the home appliances market, China’s consumers’ consumption behavior was gradually becoming rational and mature. They would pay more attention to product quality and after-sale service, and the price factor was becoming less influential. To keep pace with the times, only focusing on low price is far from enough to maintain channel leadership.
Years ago Ikea committed to sustainability, its vision “to create a better everyday life for the many people” and its values standing at the base of this primary goal. The company seems to improve itself and make big steps toward this sustainable approach year by year, offering its customers a great value for money spend on all of their furniture products. The concept itself characterizes well its Swedish ruts, where individuals are accustomed to live a life
In advertising its products, the IKEA catalogs played a primary role as they were attractive and easy to use. The efficiency of IKEA products and quality of design were emphasized in the catalogs. Every household in the area surrounding a new store received a copy of the catalog during the busy years of expansion. Although direct mail-order sales usually represented a very small portion of the total sales. The whole IKEA range was not offered by the catalogs. To attract new customers to the stores, they were always a key factor. Throughout the world, IKEA continued to open stores in different locations and attracted various customers. It was interesting to look at a company offering the same basic products at all stores and do well in many different cultures with different tastes. Lastly, the IKEA’s current number of employees in retail and expansion functions is 116,500 as of 2015. Thus, the total sum of employee worldwide in 2015 was 155, 000. Literally, the rate of employee would be increased in terms of business development in the future. (Brammer, Jackson, and Matten,
E-commerce is available on Ikea’s website to selected countries, and they provide an e-mail address to customers who have queries about their business.
According to this situation, we found out the various essential elements of “Your Choice Furniture”.
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reason...
The concept of grocery stores and supermarkets industry is an idea that has been created in order to make easier human`s life. According to the study “The Evolution of the Supermarket Industry From A&P to Wal-Mart” by Ellickson, who explains that a century ago people had to jump from one store to another store in order to get different products such as milk, meat, bread and other products. In addition, in the article “Understanding Groceries Industry” by The Reinvestment Fund, they state that back in a day the concept of grocery stores was created based on the owner`s store needs. Later on, as the development of the society and the standards of customer needs increased, the owners of the grocery stores started to be more focused on their customer needs. Also, the study of “Understanding Groceries Industry” shows that the supermarket and grocery stores industry is in their mature stage as they have developed an extensive and solid customer service.
In a simple way, the retailer needs to create a warm, friendly and an approachable retail space to attract consumers.The visual displays is an imperative element of branding of any store. If the stock is presentable, it is bound to appeal to the shoppers. If the shoppers appreciate the store layout and product, they are likely to spend more time in the store, and in return reward the store with sales. Along with the products for sales, the staff, the décor, the store interiors, the trial rooms arrangement, the lightings and music also form an inclusive elements boosting store sales. (fibre2fashion, 2008)