IKEA: Marketing and Operations Strategy

Running head: IKEA: MARKETING AND OPERATIONS STRATEGY
MARKETING AND OPERATIONS STRATEGY
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1MARKETING AND OPERATIONS STRATEGY
Introduction
The essay is focused towards understanding the marketing and operational strategies
implemented by the company IKEA. It is a furniture company founded in Sweden. The
various competitive, marketing and operations strategy that are implemented by the company
is analysed and evaluated through the study. The company is known for its unique
approaches involving exceptional customer interaction and participation in the production
process. The study focuses on finding how the marketing and operation strategy helps the
company to form effective competitive strategies. Their importance in determining the factors
that can drive the present and future performance of the organization are evaluated
subsequently.
Competitive strategy
It is evident that the competitive strategy implemented by IKEA revolves around the
product quality and unique customization process that is provided to the customers. The
company ensures that all kinds of customers are able to afford their products. Their product
offerings are not just for the few but appeals to all customer segments. The design of the
products are done keeping in mind sustainability and quality at the same time. The focus is
also towards effectively maintaining functional aspects of the products (Laurin and Fantazy
2017).
Firstly, IKEA offers the lowest prices to the customers. The cost effectiveness of the
company is better than the competitors. The company uses economies of scale and integration
of technology to take effective cost advantage of the market. Secondly, the product variety
offered by the company also gives it significant competitive advantage over its rivals. The
company provides more than 9500 products to the customers. Moreover, around 2500

2MARKETING AND OPERATIONS STRATEGY
products are launched annually by the organization. The company has also ventured into the
food industry for further expansion of business. Thirdly, the company takes part in
international market expansion strategy (Foray 2018). It currently has around 340 stores in
more than 28 worldwide markets around the globe. It has been able to garner a strong global
presence due to its long business reputation.
Marketing strategy
The marketing strategy of any significant business consists of the 4 Ps. These are
Product, Price, Placement and Promotion. IKEA implements the same towards optimizing its
marketing strategy. The mentioned aspects are part of the marketing mix. The other
significant aspects are target market and positioning.
Target market- The Company sells furniture to a large number of customers worldwide. The
company does not have any distinct target market that it appeals to. Rather the company is
focused towards reaching a wide number of customers encompassing all sexes, ages or
geographic areas. However, the common criteria for attracting all these customers is price
preference.
Marketing mix- the pricing strategy of the organization is to sell large volumes and
implement flat packaging to save costs. The company uses a mechanism through which the
inventory functions are done through the various stores that are partnered with the
organization. The company also focuses on reaching customers that are more inclined
towards customizing their product offerings. The company also focuses from changing their
product offerings from time to time in accordance of market and customer demands.
Positioning- The company uses the positioning statement of “We Do Our Part” (IKEA.com
2019). This implies the commitment of IKEA towards production of quality goods for the