Every company has a value adding process; for Ikea the process is focused on the cost, it acts to keep the cost as low as possible, for example Ikea’s designers design the product to be easily assembled by the customer, this strategy cuts the cost of an additional assembling party manufacturers. Also, Ikea displays rooms, which are already completely furnished in their showrooms; to make the customers experience the ready, fully adjusted combination of the furniture and accessories. On the other side, normal furniture competitors, display single items in separate room which does not give the consumers the opportunity to glimpse the feeling of the design’s idea that can apply to their home. Other tactic that the company uses to guarantee the
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These systems let the company cover the customers’ demands in a way that is more efficient and effective than its competitors. Zara uses backward vertical integration in order to be a fashion follower. In addition, Zara’s human resources department is responsible to take the customer’s feedback and suggestion, and then send them to the design department in order to make changes to satisfy the consumers. Moreover, when Zara has a new fashion idea it takes the company approximately 15 days to develop it and deliver it to the store, in comparison with other retailers that accomplish a new style only once or twice every season. This makes Zara 12 times faster in covering the market’s needs and competing with the competitors. In other words, Zara participants takes nine months to design and manufacture a new products collection, however most of Zara collections do not take more that three weeks to be in store (A.Palladino, 2010).
This SWOT analyses will help to compare and contrast the two companies performance:
Starting with Ikea According to The Times 100 …show more content…
Which put Ikea in needs to continue improvements in its unique products to contest with them
• Economic Factors – the economics crises that make the consumer spend less on home furniture
Moving into Zara SWOT analyses
STRENGTHS:
• Offering fine, fashionable and quality products with low prices, based on a strong obtained plan.
• A brand known internationally.
• Cooperation with designers.
WEAKNESSES:
• They produce faulty products that have a knock on effect on the prices, hence affecting the profitability of the company.
OPPORTUNITIES:
• Development in business entering and existing markets - H&M Home initiative
• Starting a footprint in Japan
THREATS:
• Losing the consumer trust, which it id due to a high market competition
(Comparing Marketing Strategies, ND)
In comparing between the two organisations, in terms of the customer segmentation we can conclude that there is a similarity segment, which is the customers’ wanting quality product with low prices. However, Zara home offers house accessories with high price, because of its impressively high quality, and outstanding uniqueness than that of Ikea’s. Therefore, Ikea satisfies the consumer with more affordability and bestows products. Each of the organisations are advertising through different marketing channels; although Ikea’s marketing strategy has more marketing channels than Zara, both companies are major retailers
These systems let the company cover the customers’ demands in a way that is more efficient and effective than its competitors. Zara uses backward vertical integration in order to be a fashion follower. In addition, Zara’s human resources department is responsible to take the customer’s feedback and suggestion, and then send them to the design department in order to make changes to satisfy the consumers. Moreover, when Zara has a new fashion idea it takes the company approximately 15 days to develop it and deliver it to the store, in comparison with other retailers that accomplish a new style only once or twice every season. This makes Zara 12 times faster in covering the market’s needs and competing with the competitors. In other words, Zara participants takes nine months to design and manufacture a new products collection, however most of Zara collections do not take more that three weeks to be in store (A.Palladino, 2010).
This SWOT analyses will help to compare and contrast the two companies performance:
Starting with Ikea According to The Times 100 …show more content…
Which put Ikea in needs to continue improvements in its unique products to contest with them
• Economic Factors – the economics crises that make the consumer spend less on home furniture
Moving into Zara SWOT analyses
STRENGTHS:
• Offering fine, fashionable and quality products with low prices, based on a strong obtained plan.
• A brand known internationally.
• Cooperation with designers.
WEAKNESSES:
• They produce faulty products that have a knock on effect on the prices, hence affecting the profitability of the company.
OPPORTUNITIES:
• Development in business entering and existing markets - H&M Home initiative
• Starting a footprint in Japan
THREATS:
• Losing the consumer trust, which it id due to a high market competition
(Comparing Marketing Strategies, ND)
In comparing between the two organisations, in terms of the customer segmentation we can conclude that there is a similarity segment, which is the customers’ wanting quality product with low prices. However, Zara home offers house accessories with high price, because of its impressively high quality, and outstanding uniqueness than that of Ikea’s. Therefore, Ikea satisfies the consumer with more affordability and bestows products. Each of the organisations are advertising through different marketing channels; although Ikea’s marketing strategy has more marketing channels than Zara, both companies are major retailers