IKEA: Design And Practice – Case Study Example

IKEA: Design and Practice IKEA: Design and Practice s that IKEA appeals to IKEA, as one of the most successful global companies, appeals to low price customers. The company does this by providing low cost products. However, despite offering its products less expensive than the competitors offer by far, the company does not make the products cheap so as not to make the customers feel cheap. IKEA has reduced the prices of its offerings and managed to maintain a high sales volume.
How IKEA manages to sell products more cheaply
First, the price is picked while designing the product. Second, IKEA chooses the most appropriate manufacturer who makes the product efficient by saving transport space and warehousing. The manufacturer also saves the raw materials that could be used for another product. Wastage is a “sin” at IKEA (Jacobs & Aquilano, 2009). Third, the company also makes lighter products such as light mugs to cut manufacturing prices. Forth, while delivering the product, IKEA ensures delivery efficiency by delivering the right quantity of goods to the most appropriate stores at the right time. This helps in cutting the expenses.
IKEA’s process for developing a new product
First, the company determines the most appropriate price. Second, a manufacturer is then chosen. Third, IKEA uses internal competition to locate the most appropriate designer. Lastly, a design is selected and the designer begins the design process.
Additional features of IKEA concept
Packaging is one of the most important aspects for IKEA. The company maximizes transportation space. The company also collects packaging materials and recycles them. Moreover, the company impresses the customers by providing advice on home decoration. Furthermore, the layout of the stores is manipulative and the company ensures that the price tags are visible to the customer.
Best criteria for selecting IKEA store
The most appropriate criteria for selecting an IKEA store is establishing one within a mall or a supermarket. This is because it would be easier for the customers to notice the price difference between IKEA’s products and the competitors’ when comparing prices. Price comparison is easier in such an area since products from many companies are displayed along with their prices.
References
Jacobs, C. & Aquilano. (2009). Operations and Supply Management. New York: McGraw-Hill Irwin.