Name: Course: Date: IKEA and Fantastic furniture Executive summary While IKEA was started in 1943, Fantastic furniture was established in 1991. Both are furniture retail companies, which have experienced a great deal of success over the years the companies have been running…
The key success factors desirable for such success is the provision of quality and value for customers’ money, understanding the market and targeting advertisements to perceived needs of the markets and provision of an outstanding customer service to the customers. Though IKEA and Fantastic furniture are similar in many ways, they differ in design of products where IKEA emphasizes on flexibility and portability of the furniture, thus, producing self-assembled furniture while Fantastic furniture mostly produces pre-assembled ones. Backward integration and increased productivity are recommended for the two companies, in order to be able to meet the projected increase in furniture demand. Table of Contents Background and Introduction IKEA is a privately owned international company that sells home products that can be assembled, such as home appliances and accessories, beds, and desks (Coker, 2005). The company was founded in 1943 by a 17-year-old Swedish, with the name of the company derived from his name and place of origin. The company ranks as the world’s largest retailer of furniture (Dennis, 2008). There are notable strengths that the company has been credited with. Its ability to control costs allows it to offer continuously lower prices for its products. The company is also known for its attention to operational details, allowing it to improve continuously the products it offers to its customers. These strengths have seen the company continuously advance, and expand to different countries in the world (Stroman, 2003). The company comprises of a group of companies that are centrally controlled by a Dutch corporation. The company provides its customers with 12,000 different products and is the third largest consumer of wood in the world (Ben, 2009). The company adopts environmentally friendly manufacturing process to ensure it preserves the environment. Fantastic furniture, on the other hand, was started in 1991 by two founders, Harding and Dejong. The company started as a stall that was selling plastic garden furniture, and later, the first of their store was opened at Birkenhead point (Johnson, 1983). In 1992, the company opened the first Fantastic Factory Lounge and in 1995, the Fantastic metal factory was established. The company owes its success to some strength it possessed from its inception. The company indulged in clever advertising, while at the same time improving its products and processes continuously. This way, the company has been able to expand its operations and grow to a large furniture retailer. The company’s growth rate was so high, that the founders were unable to manage this growth. Consequently, they invited other directors who had experiences in handling growth in a new business, effectively increasing the number of company’s director to five (Greenblat, 2010). In 1997, the company opened its first import department, which has been responsible for the sale and distribution of the company’s products to a tune of 50%. The company has expanded its operations to have many other branches in Australia, later transferring its Fantastic Lounge factory to a different location to accommodate the increased production capacity, in 2006. With its growth and expansion, the company acquired a mattress producing company to suffice the mattress requirement of the company in the same year (Ben, 2009). Literature review A furniture retail business should be the most successful business ever running. This is because every day someone needs ...
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The name IKEA is an acronym, as it contains the initials of the founder’s name, I and K, and includes E from Elmtaryd, Sweden, where Kamprad grew up and the final A denotes his home parish named Agunnaryd, also in Sweden. Actually, Kamprad involved furniture in the product range only in 1948 and from then onwards, it was an upward growth for IKEA, starting with the opening of their first store in 1958 in Almhult.
The company sells furniture for homes along with other products in Scandinavian-style. IKEA has its reach over 33 countries across the world selling its products in 230 stores while hosting 410 million shoppers every year. IKEA began its operations during the year 1943 in Sweden.
It currently has 316 stores selling its high quality products. In its pursuit to maintain its position in the market, IKEA intends to maintain its sales and even gain further ground through expansion and possibly through the creation of new products. This marketing plan will serve to assist in such pursuit.
IKEA's trademark is good design and function at affordable prices (About IKEA). The company focuses on the needs of many rather than only those who can afford a quality product. IKEA's business idea is and has been a partnership with the customer. Using the IKEA catalogue, the customer chooses the furniture and picks it up at the self-serve warehouse.
However, accessing new ventures is challenging and demands creative management (Parker 2005). Additionally, enrolling in the global market meant building IKEA’s stability when trading as a block within the European Union. As such,
This discussion talks that IKEA gained popularity in its home country as well as in rest of Europe. The furniture designs reflect the Swedish art. IKEA’s stores were painted blue and yellow which reflects the Swedish flag. Though Scandinavian and European cultures are not synonymous, they have some common shades.
This portfolio report tries to throw light on the business of IKEA, which is a multinational company of Sweden. The firm was first established in 1940 and engages in designing and selling assembled furniture. The headquarters of the firm is in Leiden,
The company was founded in 1943 by a 17-year old boy, Ingvar Kamprad in Sweden. The name of the company is an acronym that is made up of the initials of Ingvar Kamprad, Elmtayrd (the ranch in which he was raised up), and Agunnaryd
IKEA has a huge selling margin compare with other companies in the world. The company sold small accessories for homes in Sweden then later the business expanded with a very high rate, and it started making
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