Submitted by: Submitted by neozero92
Views: 575
Words: 1036
Pages: 5
Category: Business and Industry
Date Submitted: 03/29/2012 11:22 AM
1) To save money on labor and production, IKEA constantly is on the lookout for opportunities to build supplier relationships in developing countries. IKEA also made it so all furniture was designed to ship disassembled, and all of the products were transported flat. The flat packaging not only makes it easier for customers to transport furniture home, it also saves the company on shipping. IKEA also focuses on design or the products it sells.
The atmosphere is always bright and inviting. IKEA stores include childcare centers and restaurants. All of these amenities allow the customer to feel more comfortable and contribute to the success of IKEA.
Also there are other success factors such as combining high- and low- quality of materials, catalogues and so on.
2) I agree with the current product strategy being used by IKEA to evaluate its product lineup. I believe this strategy is the cause of IKEA’S wide product range, thus leading to its success. To evaluate the extent of IKEA’s product range in relation to price categories, IKEA uses the Product/Price Matrix; shown in Figure B. Using the Matrix enables IKEA to explore every possible niche within their market, by not only product type, or price, but both simultaneously. This is a very smart move on IKEA’s part because they offer a product in every category, at every different price range (high, medium, or low). The best feature of the matrix is that IKEA is able to identify any gaps in the company’s lineup. If a gap is noticed in the matrix, the market opportunities available are clearly identified. Overall, I feel this is the best possible strategy for IKEA’s products and evaluating the ranges of these products.
3) Low price is not appealing unless it represents good value for money. This is where IKEA is able to make a real difference. IKEA is committed to having a good relationship with our suppliers and so we are able to purchase good quality, economically produced designs that are bought in bulk to keep...