Transforming Ikea into Reality

1598 Words4 Pages

The Idea of IKEA (Home Furnishings) The IKEA Idea is based on providing a variety of well developed, efficient house holding items at prices so low that as many individuals as possible will be able to manage them. Rather than selling expensive furniture that only a few can buy, the IKEA Idea makes it possible to provide the many by giving low-priced items that promote helping more individuals live a better life at home. The IKEA Idea books the way IKEA items are developed, produced, transferred, marketed and constructed. All of these factors promote transforming the IKEA Idea into a reality. Few Fundamental Activities Followed by IKEA - Design: while most suppliers use style to rationalize a high price, IKEA developers work exactly in the other way. Instead they use style to protect the smallest possible cost. IKEA developers style every IKEA product starting with an efficient need and a cost. Then they use their wide knowledge of impressive, low-cost production procedures to make efficient items co-ordinate in style. Then large amounts are bought to force prices down even further. Most IKEA items are also designed to be transferred in smooth features and constructed at the client's home. This decreases the cost by reducing transport and storage space costs. In this way, the IKEA Idea uses style to make sure that IKEA items can be bought and experienced by as many people as possible - Function: many people have many needs. Some stay with children some need more storage area or have to make the most out of a little area. Hence, IKEA developers are always looking for new methods to enhance an individual’s lifestyles without clearing out their wallets. But how can excellent style and operations be coupled with top quality, all at a... ... middle of paper ... ...s entice IKEA’S clients especially in challenging economical times. The next issue experienced by IKEA is with regards to market causes; particularly that there are more and more opponents from the same market coming into the low price family and providing similar products. Thus, IKEA needs to strengthen its exclusive features to compete with these newcomers. IKEA also needs to distinguish its items from its opponents as competition between opponents always happens in the corporate world and it is very typical. Besides that, for IKEA to be the globe's innovator in providing family solutions, it needs to come out with concepts on how to place up large entry barriers and restrict access for small organizations coming into the market. IKEA should not under-estimate its opponents, they must continue to put a lot of effort into making sure the company is executing well.

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