Ikea Case Study Essay
Step One: Pick a Price
IKEA’s relentless focus on quality and low prices begins from the very start of developing a product. IKEA assigns a price to a product from the very beginning of the product’s development. …show more content…
IKEA also enforces a strong code of conduct with its manufacturers in order to create a healthy and safe workplace. By enforcing a strong code of conduct, IKEA is able to appeal to the emotional values of many of its customers. Many people decide to shop and spend money with IKEA based on their own personal moral code.
IKEA’s concern for the environment is another one of its IKEA’s competitive priorities seen in the manufacturing phase. By striving to keep the price of the mug lower, IKEA limited the colors available to colors with less pigment such as green, blue, yellow, and white. Colors with less pigment are overall better for the environment allowing IKEA to pass on, not just the lower price, but the environmental concern to its customers.
Step 3: Design the Product
After the manufacturer and price point of the product are finalized, IKEA begins the design of the product. An internal designer begins this process by writing a brief that explains the product’s price, function, materials, and fabricator’s capabilities. After the