What factors account for the success of IKEA?
Some factors that have accounted for the success of IKEA are the prices they put on the furniture, the cost efficiency in the way of what the furniture was composed of, their form of transportation, and the atmosphere of the store itself. IKEA is known for having extremely low prices. The article states that IKEA would look at the competition’s prices in each category, and then set their own prices somewhere from 30% to 50% lower. The vast price range, while low, offers different levels of prices that range from low to high, draw in customers. These lower prices draw in the customers, but the thing about IKEA is a lot of the things that are inexpensive, don’t necessarily look inexpensive. IKEA utilizes cost efficiency with their building materials so they can still turn a profit. Inexpensive materials that are not very aesthetically appealing are used in places that the eye can’t see very easily. These cheaper materials may be used under a bed or table. The nicer materials are used on surfaces that are most visible, which makes the furniture as a whole look more expensive. In the way of transportation, IKEA cuts down their costs exponentially by shipping their product unassembled. The furniture comes with directions for the consumer to put together themselves in flat boxes. The consumer may both order the furniture and have it shipped, or they can go to an outlet and pick it up. The flat rate shipping boxes make it very easy for the customers to pick it up themselves, and put it in their car, which is extremely simple as well as affordable. Finally, the atmosphere of the IKEA stores play a roll in overall success due to the how lively it is, which is odd to think about when thinking of a furniture store. Typically, for children, furniture shopping is mind numbingly boring, but at IKEA, it is almost like an amusement