Ikea Case

1. What are IKEA's competitive priorities?

IKEA's number one competitive priority is developing a quality breathtaking product for a ¬¬very affordable price. They strive themselves on continuously lowering the cost of a product to please the customer. In essence products are continuously redesigned to cost less to produce and present to the customer.

2. Describe IKEA's process for developing a new product.

When a new product is brought to the table, IKEA then sends the idea out to multiple people to design and come up with the best option for development. IKEA has strong long-time connections with many manufacturers throughout the world so the options are almost limitless. New products are constantly scrutinized to try and make it better throughout the life cycle. The most important part developing a new product is making it idea for space, as in space of shipping and space for the customer.

3. What are additional features of the IKEA concept that contribute to creating exceptional value for the customer?

Speaking from experience, shopping in an IKEA store is unlike any other store in existence. It is a requirement that an entire day be committed to shopping in an IKEA. Yes bringing home your product and having to take your time to put it together isn't always enjoyable, but the money you save by putting it together your self is all the incentive one needs. The British population loves IKEA products because they are continuously redesigned to cost less, they are environmentally conscious, and their products are space friendly.

4. What would be important criteria for selecting a site for an IKEA store?

To cut down on shipping costs, it would be ideal for an IKEA store to be close to a shipping yard. Unfortunately this will not always be the case so it is important that the site is idea for the customer. In the Chicago-land area there is an IKEA store, but it is not located in the city. It is located slightly outside the commuter traffic area where there is a large allowance of parking. Customers drive from the surrounding states to spend the day at IKEA. In the UK, IKEA locations are factored in somewhat of the same way. The IKEA locations are not located directly in the city of London, but in surrounding locations that are slightly easier to get to and allow more room for the customer to park.

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