Solved by verified expert:Read the essay uploaded about IKEA and answer the following questions: Essay Question: Use the above text and external resources to discuss IKEA’s competitive strategy. How do the marketing strategy and operations strategy at IKEA support the competitive strategy? In your answer make sure to answer the following main points: Competitive strategy at IKEA Marketing strategy at IKEA (Target market, marketing mix and positioning)Operations strategy at IKEA (operation design)Relationship between competitive, marketing and operations strategy. Essay Format: Your answer should be in an essay format: introduction, body paragraph(s) and a conclusion. *** Word count: 1100 words. *** In-Text Citation and References using Harvard style.*** Use E-library sources to support your answers. A minimum of 3 sources is required. *** Essay about IKEA has been uploaded.
Unformatted Attachment Preview
Marketing and operations management at IKEA
If you look at a range of management textbooks, you will notice that a very high proportion have
IKEA, the Swedish furniture company, as one of the prime examples of a successful
organisation. Everyone who has visited an IKEA, in almost any country, has noted the unique
approach to self-service, whereby the customer spends potentially many hours viewing displays
of furniture and then collects the modular components from the warehouse next to the tills before
leaving, taking home their purchases to assemble them themselves. There is no doubt that the
business model applied by IKEA is regarded to be one of the most successful for a retailer in the
past 20–30 years. Consumer demand remains strong and when IKEA opens a new store, it tends
to generate much interest. A few years ago IKEA opened a store in Edmonton in Greater
London. On the day an estimated 6,000 people tried to attend the store opening and the panic to
obtain sales bargains became so intense, one customer was stabbed in a fight over a discounted
Academics are always keen to highlight IKEA’s success, but it is interesting to note the
unintended functional bias in these perspectives.
In their introductory text to marketing, Dibb and Simkin (2013, p. 42) use IKEA in their first
Low prices have been the key to IKEA’s success, but price alone cannot create an international
long-term marketing success story. Products are updated consistently to match consumers’
expectations and lifestyles. In-store service and staff training are integral to the IKEA shopping
experience. Store sites are chosen to maximize catchment areas, to make access easy for
shoppers and to bring the brand name to the attention of the whole community … Promotion
emphasizes the ‘style without expense’ philosophy and the IKEA name … IKEA has a forceful,
well-directed marketing strategy actioned through primarily one tightly developed marketing mix
for the core superstore operation. The result is a successful, expanding company, satisfied target
customers, highly motivated personnel and unhappy competitors.
In contrast, the operations management perspective is well-represented by Slack et al. (2011, p.
3), who state:
Operations management is a vital part of IKEA’s success. IKEA shows how important
operations management is for its own success and the success of any type of organization. Of
course, IKEA understands its market and its customers. Just as important, it knows that the way
in which it manages the network of operations that design, produce and deliver its products and
services must be right for the market … Consider just some of the activities that IKEA’s
operations managers are involved in.
Arranging the store’s layout to give smooth and effective flow of customers (called process
. Designing stylish products that can be flat-packed efficiently (called product design)
. Making sure that all staff can contribute to the company’s success (called job design)
. Locating stores of an appropriate size in the most effective place (called supply network design)
. Arranging for delivery of products to stores (called supply chain management)
. Coping with fluctuations in demand (called capacity management)
. Maintaining cleanliness and safety of storage area (called failure prevention)
B203A – TMA –Second 2018-19
. Avoiding running out of products for sale (called inventory management)
. Monitoring and enhancing quality of service to customers (called quality management)
. Continually examining and improving operations practice (called operations improvement)
Importantly, these activities are only a small part of IKEA’s total operations management effort.
But they do give an indication, first of how operations should contribute to the business success
and, second, what would happen if IKEA’s operations managers failed to be effective in carrying
out any of its activities.
B203A – TMA –Second 2018-19
Our essay writing service fulfills every request with the highest level of urgency.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more