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Ikea Analysis

In: Business and Management

Submitted By dpinzon13
Words 2050
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IKEA ANALYSIS REPORT
Dan Pinzon
Argosy University

Abstract
This report explores the notion of values-based service, and how a company like IKEA creates value for customers and other stakeholders. In order to better understand the IKEA environment we will look at IKEA’s marketing strategy, beginning with its products, services, and other attributes that contribute to its value proposition. Following, exploring how IKEA creates a well-defined market position, and how they differentiate their offerings from competitor offerings. Included in this report is an assessment of IKEA’s strategy by analyzing its sources of value in its value chain, an explanation of its intangible products and benefits, and why IKEA considers its customers to be critical stakeholders. This report concludes with an establishment of several key performance measures that enables management to integrate IKEA’s values in its operations.

Introduction
In 1943 Swedish entrepreneur Ingvar Kamprad founded the now furniture giant IKEA. He began by going door to door selling pens, wallets, and watches. When he began selling his low priced furniture, his competitors immediately tried everything to stop him. The local suppliers were banned from selling him raw materials, and he was not allowed to showcase his furniture in industry expeditions. So Ingvar began to innovate, building his own furniture and buying raw materials from other countries. As the company grew globally, IKEA realized the need to adapt to the local needs of each country it was selling in. IKEA has identified and met the strategic barriers through a unique marketing and operational strategy.
IKEA Marketing How do IKEA’s products, services, and related attributes satisfy the needs and wants known as its value-proposition? IKEA faced several problems when expanding globally, but has met them with the following value-proposition....

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