1. What is the nature of the company business? What are their product lines? IKEA is the biggest furniture retail company that offer variety type of design to its customer. The nature of IKEA business is Offering 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. IKEA was the world's largest furniture retailer ,It sold inexpensive furniture of Scandinavian design. Considering that IKEA stores carry a product line of approximately 10,000 items, which are for the most part available at all IKEA retail locations, efficient distribution is a vital part of the company's vision to bring well designed home furnishings to as many people as possible. It's sold most of its furniture as knocked-down kits for customers to take home and assemble themselves.
2.Develop suitable vision and mission statement for company. Since IKEA company is major on furniture retail that offer variety type of design to its customer. So IKEA must develop all element aspect on their vision and mission to ensure that their sustainability of company. The IKEA vision is Our vision is to create a better everyday life for the many people.
To meet this vision IKEA provides many well- designed, functional products for Home". It prices its products low so that as many people as possible can afford to buy them. IKEA mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them . The company targets the customer who is looking for value and is willing to do a little bit of work serving themselves, transporting the items home and assembling the furniture for a better price. The typical IKEA customer is young low to middle income family. "Offering 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."
3.The way forward , develop (5) core business objectives in fulfilling the company stakeholders" (employee, supplier , investor and customer) expectation. The business objective should cover the element of financial , customers , internal business process and learning & growth.
Customer : - IKEA produces cheap and affordable products for the customers ,
- IKEA always tries to sell their products at low prices
Internal business process : IKEA always helps to produce right product for the right consumer Learning and growth: -The company’s global developments and its continual commitment is to
have a positive impact on people and the environment.
-Organizational structure is flat with words like sameness and team-work
given weight age.
Their main objectives are:
- The company wants better life for those who cannot afford expensive products
4. Critically analyze FIVE(5) important business strategies that has been implemented by the company and identify the (1) advantage and (1) disadvantage of its implementation.
From the very beginning, IKEA maintain the price leadership strategy. The founder of IKEA Mr.Ingvar Kamprad started the business whenever he was only 17 years old. It was established in Sweden in the year of 1943. Mr. Kamprad always tries to give up a structure of elegance to the furniture. So it was really nice to the customer that, they found their desired furniture in a very low price. Whenever Kamprad started producing furniture at Sweden, it was very expensive there. So Kamprad come up with a good strategy that, make a good design furniture with start adapted to machine production and also cheap to assemble. As a part of giving low price product for the customers, Kamprad undercut the retailers and sold it to the own warehouse. The advantage of low cost is giving competitive advantage to IKEA to different their product price with their competitor , the disavantage...
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