3. What does IKEA mean in the eyes of the customer (value proposition)? (i) The basic pillar of the value proposition offered by IKEA products with respect to the customer’s needs is the offer of low price products which however retain a level of quality. (ii) Another value proposition that IKEA offers to the customers is a unique combination of form, function and affordability as well as variety. Creation of beautiful and durable furniture which is affordable for the consumer. Also, IKEA gives the opportunity to each customer to fulfil his creative needs by assembling his own furniture and by choosing not to be charged for things that he can easily do on his own. (iii) The company provides an unparalleled shopping experience to its customers. IKEA offers an all-inclusive shopping experience similar to the one offered at the theme parks and the shopping malls, compatible with the needs of busy and work oriented modern families that don’t afford the luxury of endless time.
4. What is the business (mission, growth, generic strategy) & marketing strategy (STP) of IKEA? The Mission Statement is to manufacture beautiful, durable, high quality furniture at low prices, and to offer a wide range of home furnishings with good design and function, at prices that as many people as possible could afford them. This mission statement helped IKEA to build its strong brand image. IKEA has a multidimensional growth strategy exhibiting both intensive growth characteristics as well as diversification growth elements. In terms of the intensive growth character of the company, IKEA enhances continuously its market penetration strategy with respect to current markets and also it follows a market development strategy in dealing with the new markets. Indeed, IKEA has expanded its operations on the domestic and international markets. Also, it constantly pursues a product development strategy as it proves to be a restless company offering continuously new products even to the current...
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