Ikea Case
Q1. How is IKEA’s mission related to the clients they serve around the world? Explain what clients mean for IKEA.
IKEA´s mission statement: IKEA offers a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them"
Considering the previous mission statement with a unique customer vision IKEA is clearly antagonistic with specific customers’ needs. That lack of adjustment to customer needs is the main reason for not getting the same results in China than in Northern Europe.
IKEA´s expansion in the late 50 's could have called for standardized products for a middle class standard market. That was Fords approach and many more international dominant companies. That approach might no longer be sustainable. More so while trying to enter such culturally different markets like the Asian markets.
As Dr. Marcos mentioned on lecture # 1 customers are looking for a unique experience and it seems like IKEA looks at customers as a uniform conglomerate of individuals. IKEA 's mission talks about customers in such a plural manner that one could imply a lack of market customization.
The rest of the IKEA case talks more about ways in which IKEA addressed the lack of customization issue, but the mission statement itself points out the potential troubles of considering clients as homogeneous.
Q2. Find out one activity, service or innovation that IKEA has made in the last 3 years that supports its business mission statement related to serve their clients, explaining 3 reasons why you and your team consider it.
IKEA´s started innovating 3 years ago with a new concept called "Boklok”. According to their website, Boklok is defined as “A groundbreaking concept to housing that involves providing space-saving, functional and high quality housing at a price that enables as many people as possible to afford a stylish and comfortable home” (BoKlok, 2009).
We believe that Boklok is one of
IKEA´s mission statement: IKEA offers a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them"
Considering the previous mission statement with a unique customer vision IKEA is clearly antagonistic with specific customers’ needs. That lack of adjustment to customer needs is the main reason for not getting the same results in China than in Northern Europe.
IKEA´s expansion in the late 50 's could have called for standardized products for a middle class standard market. That was Fords approach and many more international dominant companies. That approach might no longer be sustainable. More so while trying to enter such culturally different markets like the Asian markets.
As Dr. Marcos mentioned on lecture # 1 customers are looking for a unique experience and it seems like IKEA looks at customers as a uniform conglomerate of individuals. IKEA 's mission talks about customers in such a plural manner that one could imply a lack of market customization.
The rest of the IKEA case talks more about ways in which IKEA addressed the lack of customization issue, but the mission statement itself points out the potential troubles of considering clients as homogeneous.
Q2. Find out one activity, service or innovation that IKEA has made in the last 3 years that supports its business mission statement related to serve their clients, explaining 3 reasons why you and your team consider it.
IKEA´s started innovating 3 years ago with a new concept called "Boklok”. According to their website, Boklok is defined as “A groundbreaking concept to housing that involves providing space-saving, functional and high quality housing at a price that enables as many people as possible to afford a stylish and comfortable home” (BoKlok, 2009).
We believe that Boklok is one of