A Study of IKEA’s Product Design and Pricing Strategy sample essay
IKEA’s competitive priority is based on producing quality products at a low price. This concept is exemplified in its’ corporate mantra ” price with meaning”. This is achieved by creating inexpensive products without making its customers feel cheap. This manta is followed from design to the customer’s home. 2. Describe IKEA’s process for developing a new product?
IKEA starts the process by picking what the new product will cost. This will help to determine color, materials used, and design. Next they choose a manufacturer using their network of manufactures. They do this by determining which manufacturer can most efficiently produce the new product. Next they design the product, keeping in mind efficiency, ie. Packaging, shipping ect. Every inch of the product is reviewed in order to maximize their ability to manufacture, ship and store the new product. Finally they ship it. While shipping, the key word is flat, in fact the flatter the better. From vacuum packing pillows to exclusively producing disassembled furniture, IKEA is committed to not shipping air.
Lastly they must sell their new product. 3. What are additional features of the IKEA concept (beyond their design process) that contribute to creating exceptional value for the customer? The way they ship their products is clearly one of its greatest contributors to its low prices. By remaining flat, shipping only 65% full containers and by building its distribution centers near ports, railways, and highways IKEA is able to ship with great efficiency. They are able to ship the maximum amount of products, at the right time to the right stores keeping their prices 20 the 30 percent lower than their competition. 4. What would be important criteria for selecting a site for an IKEA store? IKEA stores require a large area to accommodate a large showroom, daycare and food court…
Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more