Ikea Case

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Category: Business and Industry

Date Submitted: 04/23/2012 10:11 AM

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Some of the issues that IKEA face is not all consumers are going to like the products they produce even if they offer low prices. Some people don’t want to transport and assemble furniture. They also have to look at the fact that some might prefer to pay higher cost to avoid these issues. And maybe even find a better quality piece of furniture, and have it delivered and assembled. Sometime it’s just better to pay a higher price than settle for less. When you think of the time you invest in putting the furniture together.

Strengths- IKEA has a strong position in the market by having low prices. They have a competitive advantage because of the unique furniture they sell. IKEA has a good strategy when it comes to setting up their store. They go through great lengths to satisfy their customers shopping accommodations. They give their customers great shopping advantages and it’s also in a comfortable setting.

******IKEA has a market structure that no other furniture store has. Customers are able to make purchases and take them home that day. IKEA caters to those who have children that wish to shop, by offering a child care center in most stores. Another feature is their restaurants…

Weakness- They use cheap and high quality parts for their furniture and this could be part of the cause for their products not lasting. The outsourcing of their furniture they have some parts made in China and other parts made in Poland so IKEA have two different manufacturing costs. The furniture isn’t made to last, a simple move can cause it to fall apart. This leaves consumers to look for a better brand and this also can be a threat. Making the customer pick up and assemble the products. The customers who want durable furniture, furniture that fits their lifestyle, and the customer that don’t have time to pick up and assemble furniture. ***Having many factories in different countries to get materials from, IKEA often runs low on products. This causes IKEA to miss sales on...