Case Study Ikea and Acme

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  • Topic: IKEA, Whistle, J Hudson & Co
  • Pages : 21 (6081 words )
  • Download(s) : 185
  • Published : December 28, 2012
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TABLE OF CONTENT

INTRODUCTION……………………………………………………………………...….2

BACKGROUND …………………………………………………………………………...3

FIFTEEN OPERATIONAL DIFFERENCES…………………………………………....8

POLAR DIAGRAM ANALSIS……………………………………………………………16

FOUR V’s………………………………………………………………………………...…19

BIBILOGRAPHY AND REFERENCES…………………………………………………23

INTRODUCTION

In this case study I am discussing how the functions of the operation are carried out in IKEA and ACME. It was interesting to know how the two extremely different company’s one a very large firm with big brand name I.e. IKEA and another one ACME very old historic British company caring the values and culture till date. I have also explain how IKEA and ACME carry out their supply chain what are the major differences operation wise within the company. It was very interesting to do the case study and it points out how the operation differences in the company actually is and how both the companies operationally are different from each other. I am also thankful to Prof Adrian G for his continuous support and guidance which was a great help in this case study.

Background of IKEA and ACME

IKEA

Background in brief

IKEA is a franchise-based chain of household furnishings' stores, first opened in Sweden. The owner and franchiser of the IKEA system is based in the Netherlands, and there are stores in 25 countries The IKEA Group has 154 stores in 25 countries (as of August 2002). Last year 286 million people visited the IKEA Group’s stores around the world. The IKEA catalogue was printed in 118 million copies in 45 editions (23 languages). The IKEA Group is the largest franchisee of Inter IKEA Systems B.V. which owns the IKEA Concept. IKEA has since expanded to worldwide sales of more than $3 billion from 119 outlets in 24 countries (see Table 1). In fact, the second store that IKEA built was in Oslo, Norway. Today, IKEA operates large warehouse showrooms in Sweden, Norway, Denmark, Holland, France, Belgium, Germany, Switzerland, Austria, Canada, the United States, Saudi Arabia, and the United Kingdom. It has smaller stores in Kuwait, Australia, Hong Kong, Singapore, the Canary Islands, and Iceland. A store near Budapest opened in 1990. Organization Operational Strategy

The company’s Strategy is mainly to increase their retail outlets and expand its operations in as much countries as they can in order to increase their market share and profits. The strategy of the company also is to lower its operational cost and expenditure of the company. IKEA also works on to increase the profit for the shareholder and investors. Their strategy is also to give cost effective and quality products to the customer's.

Products Strategy

IKEA product range is developed to be extensive enough to have something that appeals to everyone and to cover all functions in the home. The products are modern not trendy so they are practical enough for everyday use. The products are also designed to be assembled by the customer's rather than being sold pre- assembled. Since IKEA is a Swedish company and in Sweden the culture of the people staying is basically to use light colored furniture. IKEA has also adopted the same style and has introduced light colored furniture’s in the market.

Pricing Strategy

Even though IKEA household products and furniture are designed in Sweden, they are largely manufactured in developing countries to keep down costs. Price is the most crucial factor for IKEA who seek to make a better everyday life available to the many not just to the few. IKEA believe a low price is linked to the happiness of finding just what you need for your home. In addition, the joy of being able to own it without having to forsake everything else.

Marketing and Communications Strategy

Marketing and communication of IKEA plays a vital role in company’s success. The statements which are used by IKEA for its Vision, business idea and market position provides an idea of how...
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