Topics: Design, Price, Cost Pages: 5 (1417 words) Published: August 3, 2013
IKEA :Design and pricing
Prabhdeep singh
IKEA Home Furnishing

Table of contents
Introduction………………………………………………………………………………………3 Question & Answers………………………………………………………………………….4

IKEA: Design and Pricing
Prabhdeep Singh
Level 5
Production and Operation Management

Submitted to :
Mr. Daniel
Lecturer (Level 5)
Newzealand College Of business


The first Mobel-IKEA store was opened in Almhult, Smaland in 1958, while the first stores outside Sweden were opened in Norway (1963) andDenmark (1969). The stores spread to other parts of Europe in the 1970s, with the first store outside Scandinavia opening in Switzerland (1973), followed by Germany (1974). Amid a high level of success, the company's German executives accidentally opened a store in Konstanz in 1973 instead of Koblenz. Later that decade, stores opened in other parts of the world, such as Japan (1974), Australia and Hong Kong (1975), Canada (1976), and Singapore (1978). IKEA further expanded in the 1980s, opening stores in countries such as France and Spain (1981), Belgium (1984), the United States (1985), the United Kingdom (1987), and Italy (1989). The first IKEA store in Latin America opened on February 17, 2010 in Santo Domingo, Dominican Republic. As of July 2013, the company's presence in developing countries remains minimal. The world's five largest IKEA stores are:

1. Stockholm Kungens Kurva, Sweden: 55,200 m2
2. Shanghai, China: 49,400 m2
3. Shenyang, China: 47,000 m2
4. Tianjin, China: 45,736 m2
5. Berlin Lichtenberg, Germany: 45,000 m2
The biggest store in the Southern Hemisphere is located in Tempe, Sydney, Australia with a total area of 39,000 m2. The biggest store in North America is located in Montreal, a province of Quebec, Canada. The store was opened in 1986 in the Ville-St-Laurent area, and was completely renovated and expanded in 2013. Built in 1986, the store's initial area was 22062 m2, while the renovated store now measures 43636 m2.Accordind to all information By the end of 2013, IKEA plans to open its first warehouse in Croatia near Zagreb. The adjoint shopping centre, which will be constructed until 2015, will be one of the 5 biggest in Europe and among the 10 biggest IKEA stores in the world. 

Q.no-1: What are IKEA’s competitive priorities?
Ans-1: IKEA’s main competitive priority is cost or price. Their mantra is low price with meaning. IKEA’s intent is to produce a low priced quality product that is cheap, but not cheap. While price is obviously the main competitive priority, I would say that secondary priorities would be design quality and environmental impact. As well as IKEA’s competitive priorities basically fall into two major categories: price and design. It wants to have the greatest number of people afford, at the lowest cost possible, its good quality and functional products. They put logic in the design of their products which helps IKEA to price lower than competition while maintaining certain quality standard. A part from this IKEA is swedish retailer in 32 countries. IKEA’s corporate mantra is low price with meaning.  • To keep making products less expensive without making them cheap quality vice.  • Its success plan is deliver good quality at low price without changing quality.  • They focus on design manufacturing and distribution of the product at right time at right place.  • To create an added advantage over the competitor IKEA has developed the concept of reducing retail price of the product over the time with expertise in design with environment consideration, manufacturing, transportation and warehouses around the world.

Q.no-2: Describe IKEA’s Process for developing a new product? Ans-2:  Putting customers in the center IKEA always try to develop cost effective product without making compromise with product material quality and environmental policy. They always pick price, design, manufacturer, and...
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