Ikea Business Strategy
The Study of Ikea’s Business Strategy
Price and promotion Ikea is not only a furnishings market brand, but also a furniture brand. Through a series of operations, in people 's eyes, Ikea is not simply a purchase house ware places, it represents a way of life. In our mind, Ikea 's success not only depends on its integration of the trade, logistics, but it used to integrate the core idea of trade, logistics-lifestyle (Margonelli, Lisa 2002). As we said before: using Ikea’s products is just like eating McDonald 's, drinking starbucks coffee, becoming a symbol of a lifestyle. Ikea 's management idea is "provide various kinds, beautiful and practical products, promising that most people can afford the household articles for use". In Britain, Ikea position himself into the provider of the household articles for the mass. Because of its relatively low price and effective promotion, Ikea is well received by the low- and middle-income families.
Ⅰ. Pricing decision According to Pratt, Alex, an key point to effective pricing is to find ways of placing yourself in the shoes of the customer, patient enough to spend the indispensable time to consider that what it is that they worth enough to cost, accordingly , then to build your pricing model(Pratt, Alex. 2007, p.20). Therefore, Ikea lists prices that are 30 to 50 percent lower than completely assembled competing products.
Ⅱ. Price strategies It is the low price that based of Ikea’s ideal, business inspiration and conception (Kumar, Nirmalya. 2006). All the production of Ikea is involved the basic idea that low price can make household items, various in kind, attractive and useful, reached by everybody. So Ikea is always emphasizing the strategy of low price (Åsa Thelander 2009). Thus, it constantly strives to put every one thing to do better through more simple and efficient way, in order to make it more cost-effective. It is difficult to set at a very low price by the designers themselves to finish a
Price and promotion Ikea is not only a furnishings market brand, but also a furniture brand. Through a series of operations, in people 's eyes, Ikea is not simply a purchase house ware places, it represents a way of life. In our mind, Ikea 's success not only depends on its integration of the trade, logistics, but it used to integrate the core idea of trade, logistics-lifestyle (Margonelli, Lisa 2002). As we said before: using Ikea’s products is just like eating McDonald 's, drinking starbucks coffee, becoming a symbol of a lifestyle. Ikea 's management idea is "provide various kinds, beautiful and practical products, promising that most people can afford the household articles for use". In Britain, Ikea position himself into the provider of the household articles for the mass. Because of its relatively low price and effective promotion, Ikea is well received by the low- and middle-income families.
Ⅰ. Pricing decision According to Pratt, Alex, an key point to effective pricing is to find ways of placing yourself in the shoes of the customer, patient enough to spend the indispensable time to consider that what it is that they worth enough to cost, accordingly , then to build your pricing model(Pratt, Alex. 2007, p.20). Therefore, Ikea lists prices that are 30 to 50 percent lower than completely assembled competing products.
Ⅱ. Price strategies It is the low price that based of Ikea’s ideal, business inspiration and conception (Kumar, Nirmalya. 2006). All the production of Ikea is involved the basic idea that low price can make household items, various in kind, attractive and useful, reached by everybody. So Ikea is always emphasizing the strategy of low price (Åsa Thelander 2009). Thus, it constantly strives to put every one thing to do better through more simple and efficient way, in order to make it more cost-effective. It is difficult to set at a very low price by the designers themselves to finish a