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  • Essay / IKEA - 1024

    IKEA still operates according to the same vision and business idea: “Creating a better everyday life for as many people as possible.” Our business idea is to offer a wide range of functional and well-designed furniture products at prices so low that as many people as possible can afford them” (IKEA, 2014). Currently, they are focused on sustainable growth through three growth areas: quality products at low prices, having a positive impact on both people and the planet, and the personal growth of their employees (IKEA, 2014 ). The total sales of the IKEA group in 2013 amounted to 27 billion euros (IKEA, 2014). They now have 298 stores in 26 countries, including 49 stores in North America (IKEA, 2014). The Stichting INGKA Foundation still owns the IKEA Group (IKEA, 2014). The current CEO of the IKEA Group is Peter Agnefjäll (IKEA, 2014). The company always focuses on building a more sustainable future (IKEA, 2014). IKEA's main competitive advantages are its low-cost structure, corporate culture, DYI approach, additional amenities, brand image, and strong focus on sustainability (Ferrell & Hartline, 2011). With its 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 trendy (Ferrell & Hartline, 2011). In recent years, the company has shifted its strategic focus on customer service. They now offer the possibility of purchasing their products online (IKEA, 2014). This provides consumers with a simple and convenient shopping experience (Ferrell & Hartline, 2011). Thanks to this, consumers now have the opportunity to compare (Ferrell & Hartline, 2011). I believe value and image have driven growth...... middle of paper ...... their recent addition to online sales, I don't think they will be greatly affected by their lack customer service. IKEA consumers expect a low price for a quality product. If IKEA adapted to local tastes and offered more services to its customers in all its markets, these low price expectations could not be guaranteed. References Eckhardt, GM (2005). Local branding in a foreign product category in an emerging market. Journal of International Marketing, 13(4), 57-79. doi:10.1509/jimk.2005.13.4.57IKEA (2014). Retrieved from http://www.ikea.com/us/en/Ferrell, O.C. and Hartline, M. (2011). Marketing strategy. 5th edition. South-Western/Cengage Learning. Ofir, C. and Simonson, I. (2007). The Effect of Expectation Statement on Customer Satisfaction and Purchasing Experience. Journal of Marketing Research (JMR), 44(1), 164-174. doi:10.1509/jmkr.44.1.164