Ikea

IKEA

Ikea, with the vision of creating a better everyday life for the majority of people, has successfully managed to develop its special way to operate. Even though Ikea has already turned into the most successful furniture retailer,it still concentrate on its business idea to offer a wide range of well-designed,functional home furniture products at low price so that as many people as possible will be able to access to home furnishing of high design and good quality.

When it comes to the operation management of the companies today, the aspects below play a critical role in their business. First of all, a clear vision bases on their long-term developmental ambition as well as value chain is greatly needed. Secondly, an effective model cover the product range and market distribution exerts a beneficial influence. Last but not the least, the company requires a committed leader to control the whole operation and maintain stable growth.

There goes without doubt that Ikea does make us a good example on the above aspects of operation management. To be exact, it focus mainly on the following areas:

Profit source. Ikea makes low price strategy in order to develop top line revenues instead of improving gross margin.

Besides, Ikea pays a lot of attention on the cost. Ikea will decide the price even early in the design process.They simply decide how much the things should cost so as many as possible can afford it. Then they will concentrate on looking for right materials and the smartest way to produce the products so that they can be good in quality and at the same time environmentally friendly. The furniture,which belongs to bulk cargo, takes a large amount money for shipment. As a result, Ikea creates flat-packed furniture that can successfully reduce transport damage and logistics costs. What’s more, Ikea has the sourcing globally and satisfy a variety of basic customer needs.

Customer Involvement. Customers are seen as part of Ikea, which provides...