i4.1 Best product value strategies:
As the world’s largest furniture retailer, IKEA is known for its product’s value, in terms of quality, style, affordability, functionality and durability. Their appliances and furniture is designed base on modern architecture and associated with eco-friendly interior design. Moreover, the company is known for its affordable products with highest quality and products with many functions inside. Therefore, its business idea is "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". Today IKEA’s product range consists of 9,500 home furnishing articles, designed to be functional and good looking but at a low price. Each item is developed by IKEA of Sweden, which is also responsible for giving each product its unique name, such as BILLY and KLIPPAN. The company designs its own furniture, which is made by about 1,220 suppliers in more than 55 countries. IKEA has 31 trading service offices in 26 countries so production can be monitored, new ideas tested, prices negotiated and quality checked while an eye is kept on social and working conditions (Staff 2012).
4.2 Best service value strategies:
IKEA’s business philosophy and how business is done at a very successful organization is best described through the 4 strategies of an IKEA Store. They give even greater insight to why customer service is so good at these stores. 1. To show home furnishings solutions full of home furnishing ideas by providing measuring tapes, catalogs, pens and notepaper. 2. To serve as a well-qualified home furnishing specialist so there will be more chance that customers will buy IKEA’s products. 3. To provide a day out for the whole family. Giving this, the most informal interaction is good for creating friendly attitude and it will keep customers coming back for IKEA. 4. To provide an after-sales service. IKEA should provide an online database...
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