Enterprise Information Systems- Quiz 1

QUESTION 1

Ikea is a great company that has built their success on the foundation of simplicity and low costs. The whole process of creating a product to sell in an Ikea store keeps the customer’s cost in mind from the initial idea of the product to the showroom to the customer loading it into their car themselves.

This process begins with the initial concept of the product; the manufacturing is delegated to multiple factories that compete on price. The product is quasi assembled, allowing for flat packaging reducing shipping and manufacturing costs. The staff and leadership with Ikea also keep this cost-conscious culture in mind as they travel, opting for value in coach air travel and mass transit. All these costs are then pushed down to the consumer who is able to purchase a product at a significantly lower product than if he/she were to go to a big-box furniture retailer.

The other factor for Ikea’s success is the experience of shopping in an Ikea store. It’s an event. People prepare for shopping at Ikea by making a list of what they want, measuring walls and rooms, clearing out their car and preparing for a day at Ikea. The store is set up like no other with a circular pattern, childcare centers, and restaurants in every store. For furniture buyers, they can even leave the same day with their furniture versus if they were to purchase at a traditional furniture store and wait weeks for delivery.

Above all, Ikea has listened to their customers. They have researched their needs and wants and found ways to provide these at a lower cost with a better quality. Today’s Americans are looking for value; this is one of Ikea’s biggest selling points in the US.

QUESTION 2

The matrix in Figure B is an interesting concept. It allows for leaders to ensure all segments of the market are captured through their products. If there is a segment that is not captured then it allows for a product to be created that would satisfy their wants and needs. The idea of...