Ikea Value Analysis

According to Oxford Dictionaries (2015), value can be defined as the view that something is being hold to deserve; the importance, worthiness, or usefulness of a certain thing. Besides, value can also be the monetary worth of a certain thing. On the other hand, image is defined as the overall general idea that our community in the society had for a certain product, brand name and company in business’s point of view (Business Dictionaries, 2015). Favaro (1998) mentioned that company will have to learn to place value creation first before growing its company to greatness. Meanwhile, image is formed through the reputation of the brand name, services that the company offered and so on. In other words, image is formed through the value created from
According to the Sustainability Report (2011), Ikea’s goal is to be leader in creating a society that is low carbon and aim to reduce the emissions throughout the value chain. In order to achieve their goal, Ikea did huge investments in renewable energy where renewable sources now provide energy to more than half of their buildings and solar panel installations had been installed at 40 Ikea’s buildings in seven countries. On the other hand, Ikea worked with WWF and Forest Stewardship Council (FSC) towards their long term goal in sourcing all their woods from forest that are verified as they will only accept woods that have known origin for their products. Next, Ikea also promote environmental awareness through pulling out the plugs of incandescent lights in the US and there will not be stock of this product in US. The Sustainability Report (2011) showed a statistics that 81 percent of the Americans agreed on the statement that using energy saving lights is a good practice to save the environment. In short, a company that cares for the well-being of the environment will receive more credits from the consumers as the company is not fully profit oriented but also being responsible for the