Ikea’s strategies

 

Every time I do some shopping in Ikea, I always can gain happiness. I am attracted by the delicious food and unique furniture, and my litter cousins are addicted by those child facilities. It is no doubt that Ikea is a quite successful company and its business strategies are the core reason of its success.

Ikea is known for its affordable price and unique designed furniture. It focuses on cutting operational cost instead of variable cost. Every employee in Ikea even does not have a fancy office. Then, every designer is allowed to work in Ikea’s factory, designing products with workers and engineers, to promote productivity. In this sense, designers are able to get more control about their own products and they may tend to feel motivated and work more effective. One more thing is that, Ikea changes its market strategies when its location changes. In my country—China, Ikea offers more western style furnishing and try to differ from other competitor. Furthermore, the location of each store also changes from country to country. In china, the locations of stores are lied in outskirt of cities while in western country, stores are tend to near highway.

 

Resources:

http://businesstoday.intoday.in/story/how-ikea-adapted-its-strategies-to-expand-in-china/1/196322.html

http://www.strategy-business.com/article/00111?pg=all

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