StudentShare solutions
Triangle menu

Ikea - Case Study Example

Free

Extract of sample
Ikea

The value is foremost focused on the customers. Ikea has an idealistic notion of its business, where it emphasizes customer needs and budget as its way of life. Its organizational culture and production approach concentrate on delivering value that has meaning for customers because it is value that they can afford and it results to products that have practical essence to their lives. Aside from customer-centered pricing, Ikea produces value for its shareholders through its pricing strategy. Rydberg-Dumont explains that Ikea starts with the price tag and designs products from there. She says: “We design the price tag first.” The target price is aligned with market needs, so that the products will have sure buyers.2 The pricing strategy allows Ikea to focus on manufacturing products that have high quality and that are constantly evolving according to changing customer needs and lifestyles. Ikea serves value to its shareholders by ensuring that it makes products that not only customers can afford, but can provide profit for the company. Ikea carefully balances the target price through aligning market needs and lifestyles and production costs, so that the company makes profit that can enable it to continue and to expand its business. Ikea’s promise of value permeates all products, including the Klippan sofa. Rydberg-Dumont describes the strengths of the Klippan sofa where it balances price and quality. She says that the slip sofa is her favorite Ikea product because it has a slipcover that

Related Essays

IKEA Company
Background: Many factors play a role in the growth and development of a multi-national company, ranging from administrative (Lebrenz) to cultural and socio-economic aspects of an organization.
20 pages (5000 words) Case Study
IKEA looks to furture Penetrate the U.S Market
Although change and realization of the problems that are preventing a firm from a more successful result has a litany of theories and approaches that have sought to define the best way that an effective business or leadership decision should be engaged with, this brief analysis will utilize the “Marketing Decision Making and Case Analysis” rubric which can be defined by the following acronym: DEFINE.
5 pages (1250 words) Case Study
Strategic Management in IKEA
empts to review the strategic management of IKEA while critically analyzing the relationship between mission, vision and values, the impact of its capabilities on international expansion and analyze whether there is a need to change the strategy or continue with the existing strategic operations.
11 pages (2750 words) Case Study
IKEA Case Study
Founded in the year 1943 this company has grown to a world widely famous consumer and household goods producing company and has done so with the hard work and efforts of a number of key people. This company was founded in Sweden to be more exact it was founded in Almhult, Smaland.
5 pages (1250 words) Case Study
IKEA
Now what method could they possibly use to do such a thing The answer to that is motivation. We define motivation as the process that counts for an individual's intensity, direction, and persistence of effort toward attaining a goal. (The IKEA Way of Motivation 2004) Motivation actually happens when a being encounters a certain situation or instance that triggers his/her drive to do something.
8 pages (2000 words) Case Study
IKEA- Furniture Retailer to the World Case Study
IKEA has had many competitors in the furniture industry in Sweden. This industry was one of the most expensive and IKEA’s low prices created a good market for their products. It has a wide market base with 300
7 pages (1750 words) Case Study
IKEA Case Study
It was founded by Ingvar Kamprad, a 17 years old guy who is now categorized in world’s richest people of 2013. The company is famous for its modern architectural designs of furniture. There are many other attributes which are contributing in the key success
2 pages (500 words) Case Study
Ikea Case Summary
IKEA manufactures the semi-finished and final products mostly with own sources, thereby experiencing scale economies in manufacturing. IKEA is a popular brand in the European market, which is also considered to be the largest exporting organization of Sweden. The company is successful across all marketplaces because of superior manufacturing.
12 pages (3000 words) Case Study
See the detailed information below
The company supplies for to the American market though faces competition from other large companies such as the Wal-Mart chain of stores. Understanding of its marketing strategy is of interest to marketers. This paper is a case study for the IKEA’s marketing activities to
6 pages (1500 words) Case Study
Case Study: IKEA Regrets Cutting Women From Saudi Ad
All the features of the catalogues were similar except for the absence of a womans image. The Swedish version had a woman wearing a pajama standing next to a child in a family photo. The Saudi version did not have the woman beside the child who is brushing his teeth. The
3 pages (750 words) Case Study
people can take off and wash.3 People can buy slip covers with different designs and colors. This makes the product convenient to maintain. Furthermore, the Klippan sofa can retain its “modern” appeal throughout time. Different designs make the sofa look new and exciting. In addition, Rydberg-Dumont stresses that Ikea even improved the quality of the sofa over time. She explains that the company built it from the inside. Innovation in Ikea’s manufacturing process continues, which enhances the excitement factor for the sofa. Finally, the sofa represents the value-and-price offering of the company. Ikea has lowered the cost of the Klippan sofa bymaking it smarter and smarter throughout time. By “smarter,” she means that it is now a self-assembly sofa. It is the ultimate IKEA product because it can be transported easily and assembled effortlessly at home and it has good quality for a low price. Hence, the Klippan sofa manifests the promise of value of Ikea through being an innovative, good quality, low-cost product. Aside from discussing the example of the Klippan sofa, Ikea is described as pursuing value-based pricing approach, specifically good-value pricing, instead of a cost pricing approach that some manufacturing companies follow. Ikea follows good-value pricing because it combines quality and fair price that customers determine.4 Like the example of the Klippan sofa, Ikea starts with a product’s target price that is based on customers’ needs and lifestyle. Rydberg-Dumont describes that Ikea sells products that have “good function” at low prices, with the fundamental aim of serving people who care about value. She says: “It’s for all the people.”5 The value comes from starting with people’s perceptions and lifestyle. An Ikea employee talks about developing “exciting and special home furnishing offer.”

Summary

Name Instructor Class 12 July 2013 Ikea: Good-Value Pricing Strategy Ikea is a multinational corporation that produces and sells low-cost, good-quality furniture. Its promise of value is driven by its mission: “To create a better everyday life for the many people.” To do so, it pursues good-value pricing strategy, where it can offer a better life to its customers by providing quality furniture that they can afford…
Author : yundtjimmie
Ikea case study essay example
Read Text Preview
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation