Ikea Strategic Analysis
IKEA is the world’s largest furniture retailer of ‘knock down’ furniture with 300 stores in more than 35 countries. It was founded by Ingvar Kamprad of southern Sweden whose main innovative idea was ‘to offer home furnishing products of good function and design at prices much lower than competitors by using simple cost-cutting solutions that did not affect quality of products so that as many people as possible will be able to afford them. ( www.ikea.com). He used every opportunity to reduce costs without compromising on ideas and quality.
IKEA used design, their main competency, to secure the lowest possible price by starting design with a functional need and price then using knowledge of innovation and low cost manufacturing processes to create functional products. They created a homogenous range of products that is attractive to consumers everywhere in the world regardless of the differences in cultures and geographical location. They were able to achieve and maintain low cost by combining benefits of mass consumption and production with continuous innovative style and functionality. This enabled them to quickly respond to changes in the world and yet still maintain a sense of excitement and modernity.
IKEA combined elements of a concept of target market, product, price, distribution and promotion to strengthen its positions within a very competitive market where customer demand is increasing and there is growing environmental awareness amongst consumers. They used their strengths of innovative designs and low prices of high quality to take advantage of opportunities such as globalisation, political-economical and social demographical factors, overcame their weaknesses of limited market research into new markets and threats of entry by retailers restricting access to suppliers to quickly learn, adapt, maintain and realize its vision to create a better everyday life for many people.
IKEA target market is well educated, liberal, white collar young
IKEA used design, their main competency, to secure the lowest possible price by starting design with a functional need and price then using knowledge of innovation and low cost manufacturing processes to create functional products. They created a homogenous range of products that is attractive to consumers everywhere in the world regardless of the differences in cultures and geographical location. They were able to achieve and maintain low cost by combining benefits of mass consumption and production with continuous innovative style and functionality. This enabled them to quickly respond to changes in the world and yet still maintain a sense of excitement and modernity.
IKEA combined elements of a concept of target market, product, price, distribution and promotion to strengthen its positions within a very competitive market where customer demand is increasing and there is growing environmental awareness amongst consumers. They used their strengths of innovative designs and low prices of high quality to take advantage of opportunities such as globalisation, political-economical and social demographical factors, overcame their weaknesses of limited market research into new markets and threats of entry by retailers restricting access to suppliers to quickly learn, adapt, maintain and realize its vision to create a better everyday life for many people.
IKEA target market is well educated, liberal, white collar young
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