IKEA is a privately owned business. It is an international home products retailer. IKEA sells things that are needed for household purpose. For example, accessories, bathroom, furniture, and kitchen items in their retail stores. IKEA has retail stores all over the world. IKEA sell their design furniture and goods at an affordable price. Currently IKEA is the world's largest furniture retailer.
More about the history, IKEA was founded in 1943. It was founded by 17‐year‐old Ingvar Kamprad in Sweden and it is owned by a Dutch registered foundation. It was controlled by the Kamprad family. IKEA started its first retail business in Sweden. As of August 2009, IKEA has 301 stores in 37 countries, most of them in Asia, North America, Europe, and Australia.
Comparing to Other stores, IKEA provides a cheaper price for most of this product. For instance, a bedroom furnished with products from other store is much more expensive than a bedroom furnished with Equivalent of IKEA products. Thus, IKEA is the cost leader in the furniture industry. IKEA target their market to the college students, young married couples, singles and middle class families who basically prefer cheaper price. This concept gives IKEA its biggest competitive advantage keeping it ahead of its competitors. A key feature of IKEA furniture is that they can be self-assembly. The furniture pieces are in small pieces and flatly packed then IKEA customer can assemble the furniture at their homes. Since the furniture is able to be assembled at home, customers are willing to take on the task of assembly in return for lower prices. Due to this, it also reduces IKEA transport and warehouse costs as well.
Generally people have a mindset that the price relates to the quality of goods, as in the higher the price the quality is better and lower the price the lower the quality. However, IKEA has successfully changed this idea related to that. It has productively combined low cost with...
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