Ikea Case

Topics: Design, Design management, Concept Pages: 2 (498 words) Published: February 14, 2011
1) What are IKEA’s competitive priorities?
A low price tag on its products is IKEA’s most prominent competitive priority. Apart from that, other priorities include function, modern design, environmental considerations, and making sure products have been manufactured under acceptable working conditions.

2) Describe IKEA’s process of developing a new product
As conventional practices follow, IKEA too starts with a sketch about the new product’s conceptual design. But, it differs from the other companies in the fact that, this design is accompanied by calculation of what the product cost will be. Essentially, the low price begins at the drawing board.

The product design responsibility is shouldered by not just the designers and product developers, but at the same time, the purchasers are also involved. The combination of these teams discusses the product design in relation with the procurement of raw materials, suitable suppliers.

3) What are additional features of the IKEA concept (beyond their design process) that contribute to creating exceptional value for customers? The suitable features of the IKEA concept beyond the design process that contributes to create exceptional value for customers are distribution and logistics, and the art of selling the products in the store.

IKEA strives to deliver the right number of goods to the right stores at the right time. They account for the right number of goods based on the demand and requirements. One of the most striking points about IKEA concept is to ship as flat as possible. Thus, even with the bulky products such as tables, and furniture, IKEA tries to ship as flat as possible by shipping the disassembled products. Making things flat is an IKEA obsession. The concept at IKEA is to pay as less as possible to ship air in their product packets.

The art of displaying and selling products in the stores is another distinctive feature about IKEA concept. Customers contribute to the...
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