The Business Idea of IKEA

Topics: IKEA, Price, Cost Pages: 2 (416 words) Published: December 24, 2008
Vision of IKEA

The business idea behind the IKEA is to offer a better everyday life. To meet different people’s needs, tastes, dreams, and aspirations, IKEA provides all its customers with the products which are wide range with good design and function at the low prices that as many people as possible are able to afford them..

A wide range
Firstly, the product of IKEA is wide range. In order to be more convenient to its customers, the IKEA stores gather plants, living room furnishing, toys, frying pans, even the whole kitchens, everything which is functional and helps to build a home, will be found in the IKEA stores.

Not only are the kinds of the products diversified, but also the style and function at the same time. As the company cater to the needs of its customers. However, things which are far-out or over-decorated will not be found in the IKEA stores as we only have what helps to build a comfortable home that is good living.

Good design and function
It’s different to combine the good design, good function and good quality with an affordable price. By collaborating with skilled manufacturers, the designers of IKEA found about how to produce furniture at a low price and create the unique IKEA range.

Low prices
Low price plays a most important in IKEA’s dimension who seeks to make a better everyday life. IKEA is persistent in finding ways to use the economies of scales; in order to keep the low cost. It bases on the simple idea of keeping the cost between manufacturers and customers down. It can be divided into 3 ways: IKEA stores, distribution, and purchasing.

IKEA stores
To keep the cost low, IKEA set their stores near with the warehousing, also located their stores in less expensive area of their market area. It prefers its customers pick their furniture and transporting it home and assembling it themselves, it’s another method to keep the price low.

IKEA has 28 distribution centers in 16 countries. These centers...
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