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IKEA Case Study
The successes of the company came primarily from the fact that the organization stores were self-service (customers could put the furniture together themselves) and were equipped with playrooms for the consumers’ children to lounge while their parents shopped. The stores came with Swedish cafes that were occupied with an assortment of food and furniture at best it was unusual. The furniture had a Scandinavian design with a moderate price point which was a part of the company’ product approach. Ikea’s product strategy and product range was genius. The company would benchmark other company’s products and price point to determine a customer’s need as it relates to price. I totally agree with the Matrix approach in Figure B. The matrix was very simple and displayed four different designs styles and the company’s price range. The matrix promotes IKEA’s value and represents the company’s style. The downside to shopping at IKEA in today’s realm is the company’s self-service feature and lack of customer service representatives. Customers prefer expert help on product knowledge. Customers also prefer to have their merchandise delivered and assembled for them. This is a disadvantage to shopping at IKEA. The company’s vision statement is appropriate and direct. The statement informs the consumer that furniture is made for every person based on style and moderate pricing. The United States has an extreme consumer base for any company to exceed. That being said, I believe that IKEA optimism about opening 50 stores is a dream that can be achieved. It’s all about location and the need of the people. IKEA can improve the company’s value plan by providing class merchandise. By adding a luxury line of furniture IKEA would capture that market and increase the business profit and productivity.
There is no opportunity without risk; IKEA should change its product strategy by implementing a new matrix that includes different styles...