Ikea Case Study

728 Words3 Pages
A lot of people always give a second thought on changing their furniture. Often times, those second thoughts made a lot of people ended up not replacing their furniture. Given this fact, a lot of furniture retailers still succeed on their industry. By employing several strategies, a lot of furniture retailers successfully persuaded people to overcome the purchase obstacles and purchase new furniture. One of the purchase obstacles of replacing a living room sofa is probably a tight budget. A lot of people would not be willing to use their savings on a brand new living room sofa. They would probably think that the current sofa is still good for several years. As a matter of fact, a lot of Americans would hang onto their furniture longer than their car. Having that kind of thought would be another purchase obstacle of replacing the sofa. Some people would also think that changing a living room sofa would be expensive, since they would buy a high quality sofa that would be good for a long time. In some cases there are also people who are simply unaware that…show more content…
IKEA sells its ready-to-assemble low priced products 30-50% lower than its competitors. It also saves on assembling and transportation cost, since both of them were done by the consumers. IKEA focuses on creating the surface of its products with high quality materials while using lower quality materials for the less visible part of the product. IKEA offers an exceptional shopping experience by having the store layout carefully designed. IKEA stores offer childcare services and also restaurants which further delight the consumers. Furthermore, IKEA stores are built on the basis of Scandinavian design which made it be able to differentiate itself from other furniture retailers. It does not seem like there is any company that operates similarly to IKEA considering its Scandinavian design and cost

More about Ikea Case Study

Open Document