Reflective Essay

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Reflective essay: IKEA vs. WHITE RABBIT

The first IKEA in Thailand opened its door on November 3, 2011 in Bang Phli, Samut Prakan. The store is adjacent to a major interchange where the Bang Na-Bang Pakong Highway and Kanchanaphisek Outer Ring Road intersects, with convenient access from the more affluent eastern suburbs of Bangkok. It is expected to have 40,000 sq meters of retail space as a part of the Mega Bangna Shopping Center. IKEA is an interesting DIY (Do-It-Yourself) business that has offered a wide range of well-designed home furnishings and functional living solutions at prices so low that the many people can afford them. IKEA wants to cut their cost to sell product at the low price. Therefore, the company operates by using self service which customer must taking product by their own self in order to cut the company’s labor cost. After I listened to the presentation, I found the interesting idea to get more money from customers for making a profit. They charge for assembly and delivery service at the high price. Many customers still look passed through this point because the price is so attractive.

I think IKEA may grow in a short time like fashionable where consumer go at first time then they have gone, but IKEA has opportunity to stimulus company's sale profit because they opened the branch in Thailand during flood crisis. During that time people needed to renovate their house so, they go to buy the product at IKEA. Because of IKEA located nearly the university, IKEA also create opportunity to gain profit from student who come to buy the product to decorate their dormitory. Although IKEA provided variety products with the lower price to customer, also provided differentiation of services and new experience to customer but in my opinion, IKEA may not successful in Thailand. I don’t have experience to go shopping at IKEA but I had survey from web board on the internet. Most of customer complained about the price tag which doesn’t match with the...
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