Ikea Case

The securities industry was primarily illogical between low-en and high-end retailers. Low-end retailers primarily focused on fling a ample array of merchandise including article of article of furniture on the terra firma of low costs. apart from tight margins as digress of a low-pricing system, thither were also several(prenominal) small-store retailers targeting college students and other consumers with constricted budgets. just about of these stores were inconsistent with the environment ND displays portrayed, further contri saveing to poor inventory management practices and below-par customer service. On the other hand, high-end retailers carried all single brands or multiple brands as part of their intersection point portfolio. Most high-end retailers employed expensive sales executives and focused more(prenominal)(prenominal) on religious offering value-added services including ( precisely not limited to) measurement and harvest-time selection, customizable desi gns for complete actualizeovers, product delivery and installation, high number of SKU stemming from a bum product, and even move of old furniture.Quality and service was the basis or these types of sellers, eer reminding customers that their products would last a lifetime and that going through the installation fire could easily be avoided. 2. When furniture titan kea finally unify its business strategy in the US by the mid-ass, customers where typically delineate as well-traveled, ripe yet practical in taste, likely risk-takers, technologically-savvy, and connoisseurs of delightful food and wine. Customers at KEA look for a shop pass that fulfills and exceeds their expectations by finding multiple types of furniture and other compliments (I. . Technician, decorations, etc) that atomic number 18 practical and endure accommodate a good-living standard. Aside from fulfilling the need for revolutionary furniture, customers at KEA also valued complimentary services offere d at the stores such as childcare facilities, on-site Scandinavian restaurants, and customer-service help desks for shopping assistance. KEA unrestricted states to its customers that they won t find a dewy-eyed variety of selfsame(prenominal)(p) product SKI-I s in different colorise or finishes, kinda they let room only for what is considered necessary to turn in homes in unique, modern, and snazzy ways. . KEA s competitive advantage features a well-defined tally chain strategy that accords for cost-saving opportunities when sourcing raw materials, streamlining packaging and shipping, negotiating In bulk with manufacturers, and promoting a self-service concept at store level. tout ensemble these Initiatives translate Into visit prices for finished goods that customers prefer. The main disadvantages of KEA are touch on lower-quality furniture that doses t last as long as other high-end more expensive products.Also, KEA furniture is not fit for people who computer progr amme on moving or relocating as the pieces that make a undefiled example of what W. Chain Kim and Renee Unbroken coined a Blue maritime company. The companys target marketplace is considered to be niche but at the same time oriented at covering the spate and being high-volume, low-price retailers. The customer experience is unique and cannot be easily copied by other competitors. viscid to Scandinavian-styled furniture helps distinguish KEA from traditional furniture stores while at the same time being distinctive and predictable.Blue sea companies such as KEA employ Continuous Improvement practices that allow for ewe styles and designs of furniture to be made available while on the sentry for cost reductions and price saving opportunities for consumers. 5. In target for KEA to pass over and sustain its emersion strategy and high success worldwide they have to place fussy emphasis to the following recommendations a. Expand the customer anchor outside of effected markets such as Europe and North the States and target emergent economies that are also looking for inexpensive, practical and classy ways of render their homes and offices. . Offer complimentary assistance for assembling furniture at an spare cost in order to attract higher-end customers who do not destiny to partake in the tedious task but are unbidden to pay a premium for the service. Specialized carpenters and contractors should be carefully selected and clever according to company standards. This allows for furniture to last thirster and survive movement needs. C. Continue growing in POS (points of sale) in order to cover less-populated areas in current operating countries while increasing market share and turnout the consumers preference for the brand.Ikea CaseThe market was primarily split between low-en and high-end retailers. Low-end retailers primarily focused on offering a wide array of merchandise including furniture on the basis of low prices. Aside from tight margins as part of a low-pricing strategy, there were also several small-store retailers targeting college students and other consumers with constricted budgets.Most of these stores were inconsistent with the environment ND displays portrayed, further impart to poor inventory management practices and below-par customer service. On the other hand, high-end retailers carried either single brands or multiple brands as part of their product portfolio. Most high-end retailers employed expensive sales executives and focused more on offering value-added services including (but not limited to) measurement and product selection, customizable designs for complete makeovers, product delivery and installation, high number of SKU stemming from a base product, and even relocation of old furniture.Quality and service was the basis or these types of sellers, constantly reminding customers that their products would last a lifetime and that going through the installation hassle could easily be avoided. 2. When furniture titan KEA finally consolidated its business strategy in the US by the mid-ass, customers where typically defined as well-traveled, sophisticated yet practical in taste, likely risk-takers, technologically-savvy, and connoisseurs of fine food and wine. Customers at KEA look for a shopping experience that fulfills and exceeds their expectations by finding multiple types of furniture and other compliments (I. . Technician, decorations, etc) that are practical and can accommodate a good-living standard. Aside from fulfilling the need for new furniture, customers at KEA also valued complimentary services offered at the stores such as childcare facilities, on-site Scandinavian restaurants, and customer-service help desks for shopping assistance. KEA open-ended states to its customers that they won t find a wide variety of same product SKI-I s in different colors or finishes, instead they have room only for what is considered necessary to furnish homes in unique, modern, and stylish ways. . KEA s competitive advantage features a well-defined supply chain strategy that allows for cost-saving opportunities when sourcing raw materials, streamlining packaging and shipping, negotiating In bulk with manufacturers, and promoting a self-service concept at store level. All these Initiatives translate Into lower prices for finished goods that customers prefer. The main disadvantages of KEA are centered on lower-quality furniture that doses t last as long as other high-end more expensive products.Also, KEA furniture is not suitable for people who plan on moving or relocating as the pieces that make a perfect example of what W. Chain Kim and Renee Unbroken coined a Blue Ocean company. The companys target market is considered to be niche but at the same time oriented at covering the masses and being high-volume, low-price retailers. The customer experience is unique and cannot be easily copied by other competitors. Sticking to Scandinavian-styled furniture helps di stinguish KEA from traditional furniture stores while at the same time being distinctive and predictable.Blue Ocean companies such as KEA employ Continuous Improvement practices that allow for ewe styles and designs of furniture to be made available while on the lookout for cost reductions and price saving opportunities for consumers. 5. In order for KEA to continue and sustain its growth strategy and high success worldwide they have to place special emphasis to the following recommendations a. Expand the customer base outside of established markets such as Europe and North America and target emerging economies that are also looking for inexpensive, practical and stylish ways of equipping their homes and offices. . Offer complimentary assistance for assembling furniture at an additional cost in order to attract higher-end customers who do not want to partake in the tedious task but are willing to pay a premium for the service. Specialized carpenters and contractors should be careful ly selected and trained according to company standards. This allows for furniture to last longer and survive relocation needs. C. Continue growing in POS (points of sale) in order to cover less-populated areas in current operating countries while increasing market share and widening the consumers preference for the brand.