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Ikea

Submitted by ericalgubin on December 10, 2006

Category: Business
Words: 1287 | Pages: 6
Views: 554
Popularity Rank: 13,550
Average Member Grade: N/A (Add a Comment / Grade this Paper)

IKEA - case study

Word length : 1250

Introduction

IKEA is one of the fastest growing furniture manufacturing regions in the world. It has operated 154 stores in 22 countries and services 286 million customers a year. As one of the most important reasons, IKEA has many capabilities in order to maximize customer value. Therefore, it is an indispensable part of IKEA\'s business to ensure that value is all delivered to each customer by changing the company¡¯s behaviors.

Analysis

Customer value and satisfaction are important ingredients in the marketer¡¯s formula for success. Consumers buy from the firm that they believe offers the highest customer delivered value ¨C the difference between total customer value and total customer cost:


Total customer value (product, service, personnel, and image values)
Total customer cost (monetary, time, energy, and psychic costs)
minus


Customer delivered value (¡®profit¡¯ to the consumer)
equals

The distinctive capabilities are demonstrated by IKEA to develop customer value mainly from the following aspects: Brand Publicizing, Corporation Culture, Product Value, Supply Chain Efficiency, DIY, Customer Service.
Brand Publicizing: Firstly, this company uses advertising and room-magazine to develop his name, which makes people familiar with this brand and this company¡¯s product information, such as the price, the cost and the design; Secondly, on their website customers are given the understanding of IKEA concept, also some information about IKEA¡¯s future products, such as the function. IKEA brand has built a close relationship with his consumers, and this connection not only makes people know which position the company is going to, but also makes the company know what the consumers really want in order to accommodate the consumer trend.
...

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