BUSINESS STRATEGY OF IKEA
Category : Business Essay Samples, Business Strategies, Ikea Case Studies
BUSINESS STRATEGY OF IKEA
IKEA Group is a Swedish furniture company founded in 1943 by Ingvar Kamprad who began selling furniture through his own mail order company. The headquarters of IKEA is located in Denmark. The company is a leading multinational operator of home furnishing and furniture and it operates a chain of stores worldwide. In fact, it is considered the world’s largest Scandinavian style furniture retailer that has world-class quality but in very low price. Currently, IKEA Group of Companies has a total of 175 stores in 31 countries. Aside from that, there are 19 IKEA stores owned and operate through franchising. And the major factor that the company stands out from its competitors is its designs and styles are all nature inspired. Likewise, the Swedish are more particular with the beauty of nature, that is the reason that when then they decorating or styling their own home, it is always pattern from the nature’s concept which is full of life, looks fresh on the eyes, simple but elegant. In 1800’s the company’s artists combined the styles of the modern times as well as the functionality aspect of the furniture they have been created for over the years now. In addition, the company has the most dedicated and hardworking employees who really devote their energy and innate craft to create exceptional designs of various furniture. And the most amazing part of all; is the mission, vision and goal of the company which is to serve its worldwide clients with the excellent home products they have as well as to enlighten customers’ hearts with the affordable costs of the service and products that they have been offering to the customers. The founder of the home furniture company had been able to instill in the minds of all people who right now work for the company the value of creating products that will satisfy and meet the varied customers’ home furniture needs. And yet, still manage to control the price scheme in a way that many existing customers as well as new clients would never have a second thought to grab the chance to buy the products. (http://en.wikipedia.org/wiki/IKEA)
As a matter of fact, many competitors can not do the same thing as what IKEA is doing business with its diversified clients in the world. Because the company does not only want to achieve high revenues but its major objective is to serve equally the rich and the ordinary customers with the same high standard quality of products and services. Moreover, it is interested to know that at present IKEA does not manufacture its own products. Otherwise, it works and does partnership with a large number of suppliers all over the globe. However, in the past years, the company used to manufacture its own furniture, in fact, various factories and plants before. But, it is different thing now, because the company decided to help the other businesses to grow along with them. As a result, many suppliers in every part of the world have been given a chance to supply various furnishing materials to IKEA. In fact, the company has launched several partnerships as joint owners or financiers to a number of suppliers in Poland, Slovakia, Russia, Romania and China. Aside from the fact, that the company is still working with almost 1,800 various suppliers around the globe; this is to ensure the continuous flow of manufacturing services for the clients.
Similarly, the globalization of IKEA is extremely vital in the whole
organization because it opened many doors of job opportunities to huge number of
its employees. In the same manner, many managers have broadened their area of
responsibilities in sales as well as it gives them more income and incentives.
Generally, IKEA does a totally different kind of business towards their
customers. They are the most cost conscious business leader in the world when
it comes to putting prices on their products. They always see to it they are
offering cheaper products among the furniture stores across the globe.
Additionally, the company has a wide array of products for their wide range of
customers. Next is their versatility in doing variety of designs and styles that
the clients could choose from. Above all these is their commitment and
dedication to play a major role in helping their customers to find solutions for
their home’s needs in return of a very reasonable price. What else that makes
IKEA different from its competitors? Well, it is for its being so generous to
share its success to other countries; this is a way of helping the other nation
to start doing successful and effective business with the excellent company like