ikea case study

ikea case study Case Study example
Case Study
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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.


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. ...
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