Tuesday, February 25, 2020

Ikea case study Essay Example | Topics and Well Written Essays - 500 words

Ikea case study - Essay Example Competitive priorities are directly linked to the performance of any business. The IKEA Company is involved with manufacturing of household items across the world. As a manufacturing company, IKEA has divided its competitive priorities into the following elements; cost or price, quality, innovation, flexibility and delivery. Under cost, the IKEA Company is able to pick a price of any prospective product and calculate what the product would cost. The company involves all its experts in design, product developers and purchasers to make the price choice. IKEA also ensures that there is quality in all the manufactured products.2 This is ensured by maintaining the usual suppliers of raw materials, for instance, the Romania factory. The products are also produced with Keen Corporation with suppliers. Innovation has also seen the company develop better products for their consumers. IKEA’s products are designed and produced by the best personnel of the company. This has led to increased convenience in the use of their products in addition to more sales for the company. IKEA’s design and manufacturing process is also flexible. This means that they are able to accommodate any necessary changes to products in any phase of production up to the distribution level. The company was able to change the design of various tables to ease transport. Moreover, the design of the mug was changed three times to fit the packaging in order to ensure more sales. Finally, IKEA’s delivery system is efficient in all aspects of adding value to consumers. The company ensures that the correct numbers of goods are delivered to the right stores and at the required time.3 These priorities explain the success that IKEA Company has enjoyed for a long time. The nature and dynamism of today’s global market requires new products to ensure survival in business while maintaining the market share. IKEA understands this thus there is always an

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