What Are the Arguments for and Against Making a Distinction Between Leaders and Managers

(a) First factor for success of IKEA. Their characteristic is Scandinavian heritage.This is IKEA features and selling points. When they design products, they always adopted a more distinct design aesthetic. So their product always beautiful and distinctive. Maybeothers competitor want to copy IKEA’s Scandinavian design, but it’s not easy. Copy Scandinavian heritageis difficult.

Second, IKEA has good cost efficiency. They know how to use distribution concept to reduce costs. They has flat-pack that is designed to ship disassembled. So all of their products is transported for not yet assembled state. It can saved the company on shipping. And it is easier for consumer to transport the furniture at home. “Reduce costs” is mean can reduce product’s retail price. In addition, Ikea pay attention what the materials could be used to make their product. For example, they will use high-quality materials in their product surfaces that is need to undergo stress or visible. But Ikea also use lower-quality material to do the same product in. They use less material to less visible way. They say that is not uncommon for there their single wooden product to have more than five different tree. This is an effective way to reduce

costs.

It’s like IKEA’s Vision Statement put it:“The IKEA business is to offer a wide range of home furnishings with good design and function at price so low that as many people as possible will be abletoafford them. And still have money left!”Ikea’s slogan is “Low Price with Meaning” They let customers think price is cheap. But their beautiful designed don’t make customers feel cheap. And Ikea is very smart. They never say their products is durable.

Third, they has the “Product & Price Matrix” This is about IKEA’s product strategy. This is very practical and easy to understand. This matrix include four basic style and three basic price. The matrix is use to find out gaps in product lineup. Then they set their retail price within this matrix price...