Businesses Management -- Case Study -- Ikea

 Essay on Operations Managing - Example - Ikea


This paper evaluates the case article entitled " IKEA: Style and Pricing”. It should analyze IKEA's business strategy of introducing its " good quality for low price” products in North America and identify the factors and strategies that IKEA need to consider and apply to make sure its success.

IKEA's Challenge: Products Success in North America

IKEA is well know for its product strategy of providing affordable household items. This is authorized through IKEA's constant process of driving costs by having successful supply chain and business processes including finding inexpensive suppliers, customizing design of products and minimizing syndication and logistics costs. With its success in 32 countries, IKEA's current business technique is to broaden its marketplace by bringing out its products in North America. The primary concern that IKEA faces with its actions is whether the product technique of rendering good quality household items for low price can succeed in the North American marketplace.

IKEA's Plan and Strategies for the North American Industry

Immediate Plan of action and Tactics

Understand Consumers' Requirements: Product Re-design and New In-store Experience IKEA must conduct an extensive market research to determine perhaps the North American industry will be open to their existing item designs or not. For example , in furniture products operation is a necessary feature; nevertheless , it is craftsmanship or style that provides them. By conducting the marketplace research prior to product advantages in United states, IKEA can already detect such trouble and alter its item design to fulfil consumer requirements. This kind of shows that IKEA understands the customers' requirements. Also, these kinds of product style modifications can even be reviewed and tested in existing industry to determine in the event there will be demand on these products. This will allow IKEA to synergize its merchandise design ideas coming from the several market needs.

Apart from conducting market...

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