The Competitive Advantages of Ikea
The competitive advantages of IKEA
Low price and good quality more than competitors
Good service
High quality of design
Wide varieties
IKEA of Sweden AB (IoS) based in Älmhult, develops and makes the IKEA range available to stores and customers all over the world. The competitive advantages of IKEA is to offer wide range of well-designed, functional home furnishing products at price so low that as many people as possible can afford them. Their concept of high quality of design at low price enables to emerge into the global markets which contribute to serve peoples around the globe. Quality and function are important but should not take priority over the consumer's needs. Similarly, price should never compromise function and technical quality. Their main processes start and end with the customer.
They are defined by customer needs and should lead to customer success. The company was successful in facilitating it's over different cultures and expanding its business over various countries. It is observed that initially, the company did not customize the services and products to local markets but it has kept standardized operations and products around the world. Hence the standardized approach of internationalizing has minimized the costs which can be considered as another success factor for IKEA. This strategy includes a model developed by IKEA where the company was able to keep the costs low.
There are so many reasons that make IKEA so popular, for example, cooperating with the suppliers from all over the world, high-efficiently of logics, using “life system” to find what customer need, and so on. Follow the concept, IKEA try their best to give the customers what they promised: low price, well-¬‐design, creating a better everyday life for many
Low price and good quality more than competitors
Good service
High quality of design
Wide varieties
IKEA of Sweden AB (IoS) based in Älmhult, develops and makes the IKEA range available to stores and customers all over the world. The competitive advantages of IKEA is to offer wide range of well-designed, functional home furnishing products at price so low that as many people as possible can afford them. Their concept of high quality of design at low price enables to emerge into the global markets which contribute to serve peoples around the globe. Quality and function are important but should not take priority over the consumer's needs. Similarly, price should never compromise function and technical quality. Their main processes start and end with the customer.
They are defined by customer needs and should lead to customer success. The company was successful in facilitating it's over different cultures and expanding its business over various countries. It is observed that initially, the company did not customize the services and products to local markets but it has kept standardized operations and products around the world. Hence the standardized approach of internationalizing has minimized the costs which can be considered as another success factor for IKEA. This strategy includes a model developed by IKEA where the company was able to keep the costs low.
There are so many reasons that make IKEA so popular, for example, cooperating with the suppliers from all over the world, high-efficiently of logics, using “life system” to find what customer need, and so on. Follow the concept, IKEA try their best to give the customers what they promised: low price, well-¬‐design, creating a better everyday life for many