What are IKEA’s competitive priorities? IKEA’s competitive priorities basically fall into two major categories: price and design. It wants to have the greatest number of people afford, at the lowest cost possible, its good quality and functional products. They put logic in the design of their products which helps IKEA to price lower than competition while maintaining certain quality standard.
1. Describe IKEA’s process for developing a new product. IKEA’s process for developing a new product is not just about changing the physical attributes of an item, say its Trofé mugs. What is crucial in the design is the cost to be incurred in producing one unit of mug. To determine this cost, a team is organized consisting of
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The answers to these questions cascade to how concerned am I to the company’s expenses. I have to spend my budget wisely and manage my marketing expenses, appropriating budget to high yield investments or programs that will maximize my expense-to-sales ratio. The habit must be established as early as now that I am working for Wyeth, so that when the time comes that I have my own company, there is no sudden shift in paradigm from being an employee (who only cares about the 15th and 30th days of the month) to an owner (who cares a lot for the company). Ethical guidelines to marketing must also be practiced. There are a lot businesses that failed because of ethical issues. To bring in sales to the organization and hit targets, the end must not justify the means. In Wyeth, we have guidelines to follow to have harmonious business relationships with our stakeholders. This adds value to overall organization. Lastly, customer service at Wyeth extends not only to external customers but to all stakeholders that affect our existence or inexistence in the organization. The IPO Model tells me that it is not just about the external customers that I should be mindful, but equally important is my boss and my colleagues. Wyeth not only provides medicines or milk. We are not a company that drowns our selections to leisure or luxury. Instead, we help them to be better in their field.