Business Studies IKEAs key Competitive Advantages - 1100 Words

Business Studies: IKEA's key Competitive Advantages (Case Study Sample) Content: IkeaNameInstitutionQuestion 1: Part OneGiven the SWOT analysis provided in the case, IKEA's key competitive advantages include its low-cost structure which has been the very essence of its success. The firm offers high-quality products at low costs, which the ordinary person can afford and accordingly, many customers are able to identify with the brand. Besides, through this model, IKEA is able to beat its competitors, and has continued to achieve more revenue growth and remain profitable amidst the tough economic times. In the same manner, IKEA's brand image has enabled it to stand out and achieve global recognition and acceptance. According to Ferrrari and Hartline (2011), IKEAs customers view the brand as a representation of a modern, trendy and fashionable furniture shop. In addition, the firm has a wide array of products ranging from home furnishing and appliances, home building materials, etc, which are manufactured using environmentally friendly raw materia ls. Thus, many customers prefer making their purchases from IKEA for they are bound to find a variety of products that meet their needs.Lastly, the company's provision of value added services and other amenities has enabled it to achieve a competitive edge. For instance, various IKEA outlets have child care services where the shoppers can leave their children to be supervised by the IKEA staff at no cost. Other value added amenities include restaurants and scheduled consultations with IKEA's professional designers. Consequently, the provision of such services makes the IKEA shopping experience an awesome one, and customers do not feel rushed to leave the store as they can do more than just shop for furniture.Part TwoCustomer satisfaction is vital for customer retention since the satisfied customers are likely to become loyal customers who even bring referral business to the firm. Thus, apart from offering exceptional customer service in their stores, IKEA should come up with ways o f measuring the satisfaction of their clients. Consequently, such information would help the firm to not only manage the expectations of the customers efficiently but also to focus on the controllable issues. Furthermore, IKEA should strive to create a stronger bond with their customers to be able to identify the emerging trends in their tastes and preferences. In the same manner, the firm should consider incorporating other services such as interior design to enrich the wholesome customers experience. In addition, the firm should improve its online presence and support, and make it possible for customers to not only give feedback via the online platforms but also to be able to make their orders. Moreover, a brief and convenient shopping experience is the desire of many modern shoppers, owing to their busy schedule. Thus, IKEN should consider reviewing the design of their stores and make it more categorized to make it easy for the customers to locate whatever it is they are looking for. Lastly, the firm should formulate a customer relationship management system that would help in tracking and communicating to the customers.Question 2: Part OneThe biggest reason for IKEA's growth and popularity is VALUE. To illustrate, the company is well known for offering a wide variety of stylish and quality furniture which are affordable to a large segment of its target market. In addition to providing low-cost furniture, the company adds value to the customer's experience by providing other extra services that make the IKEN shopping experience a wholesome one. For instance, the company provides its clients with pencils, tape measures, catalogs, etc. so that the customers are well equipped to carry out the furniture assembling process. Besides, the company offers home delivery services for the bulky stuff. Moreover, IKEN is committed to environmental conservation and sustainability, and from product design to disposal, the organization ensures that it is adhering to its s ustainable environmental responsibilities.Part TwoThere are various steps that IKEN may take to sustain growth in case it loses some cache in the future. For instance, the company should be willing to invest more in alternative marketing programs such as television and online marketing since not many people are responsive to catalog marketing, which has been the company's major marketing initiative. Secondly, the company needs to expand its product offerings and provide not just low-cost products but also ensure that the shopping experience at its stores is a time-saving and convenient exercise. Thirdly, IKEN should consider offering various online options that would allow the customers to make their orders online, and this would enable the company to make use of its wide distribution networks instead of entirely relying on the physical stores. In addition, the company could also consider offering green' products as the customers are increasingly becoming more interested in the sust ainability of natural resources. Lastly, IKEA also needs to adjust its product offering to be consistent with the changing needs of the customers, and also review its do-it-yourself approach as it is no longer appealing to some sections of the population and most especially the young generation.