Based on our findings, the IKEAS’s vision, mission, objectives and its taglines are as follows:
Vision: ‘’To create a better everyday life for the many people.’’ To meet this vision IKEA provides many well-designed, functional products for the home. Its prices its product low so that as many people as possible can afford to buy them.
However, in creating low prices IKEA is not willing to sacrifice its principle, ‘Low price but not at any price’ is what IKEA says. This means it wants its business to be sustainable. IKEAS supplies goods and services to individuals in a way that has an overall beneficial effect on people and the environment. Customer all over the whole has responded positively to IKEA’s approach.
Mission: ‘’To offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.’’
Objectives: To produce the reasonable and affordable household objects at prices much lower than competitors by using simple cost-cutting solutions that did not affect the quality of products.
Tagline: ‘’affordable solutions for better living.’’
Q2 DESCRIBE AND EVALUATE IKEA INTERNATIONAL AND BUSINESS STRATEGIES.
1. Product Range
The IKEA product range focuses on good design and function at a low/reasonable price. It offers home furnishing solution for every room in the home. It has something for the romantic at heart, the minimalist and everyone in between. It is co-ordinate so that no matter which style customers prefers and product developers work to ensure that their products meet the needs and eliminates the unnecessary.
Anybody can make a good-quality product for a high price, or a poor-quality product for a low price. But to make good products at low prices, it needs to develop methods that are both cost-efficient and innovative. That is why at IKEA, they approach things a little differently.
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• Design the price tag first
The LAMPAN was created from the fundamental idea that it is possible to combine an extremely reasonable price with beautiful design and high quality. With the low price in mind, IKEA designers began by reviewing the whole production process, including materials used, logistics and labour and transportation cost. The outcome was a successful new packing method where the lampshade could be used as a bucket for the lamp base.
• See things differently
One IKEA product developer decided to use a door as a tabletop when he toured a door factory that used board-on-frame construction – layering of sheets of wood over a honeycomb core that gives a strong, lightweight structure with a minimal wood content.
This type of construction is cost-effective and environmentally friendly, and is used today in IKEA products such as the LACK table from 1980.
• Flat packing saves shipping cost
IKEA flat-packs and customer willingness to assemble products themselves enable us it reduce labour, shipping and storage cost. IKEA designs furniture so that it can be packed unassembled. Ultimately, this means that IKEA are able to offer their customers products at reasonable prices.
• Responsibility for people and the environment
At the IKEA Group, they believe that taking responsibility for people and the environment is a prerequisite for doing good business. IKEA works actively to reduce its impact on climate change and IKEA products must be produced under acceptable working conditions by suppliers that take responsibility for the environment.
• Good design and function
It’s not easy combining good design and good function with the right quality, at an affordable price. But,...