IKEA Catalogue

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VRIO Analysis Value Great products are goods that enable a firm to exploit opportunities and enhance the perceived customer value. IKEA has been lauded for decades for being a furniture retailer that designs products that customers appreciate. IKEA customers work hard, live frugally and try to make the most out of limited resources and thus, an expensive single-functional product may not be what they are looking for. With an extensive range of welldesigned functional products, IKEA places deep emphasis on keeping the prices as low as possible so everyone can buy them. A democratic scheme, IKEA has found the ideal balance between good design, functionality, quality and affordable price.
Organisation structure Good companies make money. But great companies make meaning. IKEA is the epitome of a cost-focused organisations where everything revolves around a price tag. However, being cost-obsessed is more than just for profit. IKEA wants its products to be affordable to as many people as possible, so they can live a better life. With this cost-driven philosophy, IKEA revolutionizes product innovation and found creative means to keep costs as low as possible and the first step begins with the production process. IKEA champions economies of scale where long-term partnerships are established with suppliers to achieve volume commitments. With volume in purchase, IKEA can negotiate for lower prices in which the cost-savings are transferred to the customers and customers get to enjoy cheaper deals plus greater security and guarantee in their purchases. Materials used for production are often sourced near the factories or supply chain and products are directly delivered from suppliers to IKEA stores. This helps to cutdown on handling costs, reduce road miles, minimise transport costs and lowers IKEA’s carbon footprint. In addition to cost-focused strategies, IKEA advocates for sustainable business practices. Apart from the responsibly sourced timber efforts, IKEA has been increasingly taking advantage of renewable materials. As of current, 60 percent of IKEA’s product range uses renewable materials and approximately 10 percent contains recycled materials (Reuters, 2018) which helped reduce production costs.
Page 1 and 2: BUSINESS REVIEW The IKEA Effect: Co
Page 3 and 4: STATE OF IKEA’S BUSINESS TODAY Th
Page 5 and 6: Physical resources Thanks to bulk b
Page 8 and 9: Weakness For every weakness lies an
Page 11: Apart from cost of production, the
Page 15 and 16: The IKEA Effect: The Experiential M
Page 18 and 19: Most IKEA stores also feature a res
Page 21: Creative Content Marketing Traditio
Page 25 and 26: More Purchases with Tech Assistance
Page 29 and 30: 4 PORTER’S FIVE FORCES Bargaining
Page 31: There are currently seven IKEA stor
Page 34: Our Mission and Vision At IKEA our

IKEA Catalogue

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