IKEA
History of Ikea: Ikea is a multinational company founded and started by Ingvar kampard in 1943.he was a farmer in Sweden. Ingvar got an idea of making furniture from recycled wood its first store was started in Sweden, Norway and Denmark. The main aim of Ikea was to make eco-friendly furniture with modern architectural designs and assembled furniture to attract middle level and higher level customers with a reasonable price range.it also serves the customers by services in interior designing. Ikea has 338 stores in 38 countries with more than 1.2 million employees. Now Ikea is also going to start its brand new store in India at Hyderabad by the end of 2015. Ikea differentiate its products from its competitors as it make its own design’s …show more content…
But it should concentrate on its substitute product to avoid losing their name from style. As the current trend is “ecofriendly furniture”. Every competitor is following the same concept. However the demand for basic functional furniture is relatively constant. So there is less threat of substitute in future.
Rivalry among competing firms: there is a high competition in this industry. Low priced producers of furniture like galiform and retailers like Wal-Mart and local competitors. Ikea competed by entering the china and japan markets which pose the large competition. Large number of retailers imports products from china selling at low price. Signify intense competition.
IKEA cost leadership strategy.
Low cost has been an important priority for IKEA, which applies to all of their activities. it does not depend upon third party manufactures instead, the engineers design low cost modular furniture, which can be readily assembled by the user. IKEA encourages transporting their purchases rather than providing delivery source to the clients place. It provides option to the customer whether they want to collect the product or it should be delivered by the Ikea delivery team with additional service charges for home delivery. Strategy levels of
History of Ikea: Ikea is a multinational company founded and started by Ingvar kampard in 1943.he was a farmer in Sweden. Ingvar got an idea of making furniture from recycled wood its first store was started in Sweden, Norway and Denmark. The main aim of Ikea was to make eco-friendly furniture with modern architectural designs and assembled furniture to attract middle level and higher level customers with a reasonable price range.it also serves the customers by services in interior designing. Ikea has 338 stores in 38 countries with more than 1.2 million employees. Now Ikea is also going to start its brand new store in India at Hyderabad by the end of 2015. Ikea differentiate its products from its competitors as it make its own design’s …show more content…
But it should concentrate on its substitute product to avoid losing their name from style. As the current trend is “ecofriendly furniture”. Every competitor is following the same concept. However the demand for basic functional furniture is relatively constant. So there is less threat of substitute in future.
Rivalry among competing firms: there is a high competition in this industry. Low priced producers of furniture like galiform and retailers like Wal-Mart and local competitors. Ikea competed by entering the china and japan markets which pose the large competition. Large number of retailers imports products from china selling at low price. Signify intense competition.
IKEA cost leadership strategy.
Low cost has been an important priority for IKEA, which applies to all of their activities. it does not depend upon third party manufactures instead, the engineers design low cost modular furniture, which can be readily assembled by the user. IKEA encourages transporting their purchases rather than providing delivery source to the clients place. It provides option to the customer whether they want to collect the product or it should be delivered by the Ikea delivery team with additional service charges for home delivery. Strategy levels of