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Submitted By jessie1028
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Pages 2
IKEA has 5 key performance objectives, these are:- QUALITY – IKEA aims to offer their customers products which do not compromise on technical or functional quality despite their relatively low prices. IKEA reassure their customers of this fact by having in store mock-up ‘test cells’ which illustrate their product’s robustness (eg. demonstrations of 000’s of cupboard and drawer opening cycles).
SPEED – IKEA wants the majority of its products available for immediate purchase, enabling the customer to take them away during the same visit or within a very short time after. They also want the customer’s in store shopping experience to be as quick and as simple as possible whilst maximising the opportunity to offer them additional goods and services.
DEPENDABILITY – IKEA aims to keep its customers fully informed of how and when they will get the product they have chosen to purchase. Customers are made aware of what they can and cannot pick up in store, how they need to order it, how long it will take to arrive and the delivery or collection options they have when it is available. By doing this both parties are clear on their expectations and comments to one another. FLEXIBILITY – IKEA aims to offer its customer a huge range of furnishing products to choose from. Its product portfolio is continuously being expanded, complementing existing products which have been offered for sale for many years (eg. the LACK table was first sold in 1980 and is still offered today).
COST - IKEAs philosophy is to offer products at cost which the majority of people can afford without compromising on quality. IKEA achieves this by focusing not only the material and manufacturing costs of the products themselves but also the costs of associated with inventory, staffing and retail premises etc. [continues]

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