The IKEA: Strategies And Supply Chain Process

1995 Words 8 Pages
Abstract
The purpose of this assignment is to identify the IKEA Operation Strategies and supply chain processes that IKEA used to provide their product and how they market and be able to meet and satisfy customers or client requirement.
Introduction:
IKEA is considered as one of the largest prominent furniture retailers in the world, which was found by Ingvar Kamprad for almost sixty years ago. It specializes in designs and sells furniture, accessories, and bathroom and kitchen items at low price so many people will be able to afford and do not mind to give some effort to assemble them.
IKEA have large network of stores across Asia, Europe and America. It carries a range of 10,000 products its stores and customers can order many product online
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In 1987, IKEA won the Excellent Swedish Design prize.
 1990s, IKEA introduced its range for children and opened stores in Hungary, Poland Czech Republic, United Arab Emirates, Spain and China.
 2000s, IKEA lunched the code of conduct called The IKEA Way on Purchasing Home Furnishing Products (IWAY) that defines what suppliers and IKEA expect from each other. Also, IKEA co-operation with UNICEF to address the root causes of Child labor.

Mission and Vision:
The IKEA mission, vision and market positioning statement provide a framework for all IKEA marketing communication worldwide.
Vision statement is "To create a better everyday life at home for the many people".
Mission statementis "To offer a wide range of well designed functional home furnishing products at prices so low that as many people as possible will be able to afford them".
Market positioning statement is "Your partner in better living. We do our part, you do yours. Together we save money".
IKEA Objectives:
• To produce cheap and affordable product for the public/customers.
• Better life for those who can't afford expensive products.
• Ensure the customer finds what they are looking for in store.
• Low prices.

IKEA Operation
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It applies reasonable operations management method combined with new fashion designs, high quality, and affordable price.

Keep price Low:
As one of the IKEA goals is to serve "the many people", they requested the designers to create a variety of products at extremely low price level. They used production possibilities from different area in unique and previously unimagined ways; such as having shirt factory produce furniture or using leftover materials from the production of one product to create a new product.
IKEA customers are also involved in keeping price low as the degree of contact is low as well. Customers have the ability to serving themselves. they select, pick up, transport the products to home and assemble them themselves. While the traditional furnishings depend on high cost because of the low volume and low variation but high customer contact.
Function:
IKEA promotes products to be modular. They concentrate in targeting two groups of customers. The first one is young adults who live with kids and their income from low to middle. These group need more storage and have to make out the most of a small space. Because of this, IKEA designers are focusing on what is important for this group and looking for different ways to improve their product function and combine it with good

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