Market Structure of IKEA Group

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INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Describe the company, its products & services along with its history....................................1
2. Analyse market since its inception, identify that in which market Structure Company
operated........................................................................................................................................2
3. Did company operated in different market structure in the history, discussed the
characteristics of market structure...............................................................................................4
4. Considering the nature of the industry in which firm operated...............................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Managerial economics is among the key principles that characterize the convergence of
multiple economic ideas with market strategies in order to make rational decisions (Armstrong
And et.al., 2019). Such actions are based on projected benefits and productivity maximisation, by
efficient activities and outputs. For the better understanding of this concept, IKEA Group is
selected which is Dutch based multinational Company and established in 1943. This assessment
covers the several topics such as market situation as well as the framework under which it
conducts business, it analyses total historical data for this firm's financial position. In addition,
several ideas for larger or smaller state intervention on its development are also decided to make
in this paper, taking into account the value of society.
MAIN BODY
1. Describe the company, its products & services along with its history
IKEA is Netherlands based Swedish Multinational Company which is sell ready to
assemble furniture, home accessories, kitchen applications and other home services appliances
which are useful goods which helps a person to do smart work. Company founded in 1943 and
has been the world’s largest furniture retail entity since 2008 (Blair and Whitman, 2018). The
Company is renowned for its modern products for different types of appliances and accessories,
and its interior decorating work is also synonymous with eco-friendly functionality. However,
the firm is mainly dedicated to cost management, organizational specifics, and constant product
growth, which helped IKEA to reduce its costs by such an average of 2 to 3 %.
The corporation is a commercial business run by Inter IKEA Systems B.V. Listed in the
Netherlands, and managed by its creator Ingvar Kamprad's family. The IKEA Corporation has a
complicated organizational framework, which members of the national assembly have claimed
was structured to escape over € 1 billion in tax expenses over the 2009–2014 cycles. It is owned
by several organizations located in the Dutch and Liechtenstein. In 1943 Ingvar Kamprad
established IKEA as an online delivery company but started selling furniture five years later. In
1958, the very first offline store was opened in Älmhult, Småland, underneath the name Möbel-
IKÉA (Möbel means "furniture" in Swedish).
Most of IKEA's furniture is crafted to be installed by the customer, instead of being
delivered pre-made. The organization argues that this tends to minimize prices or use of packing
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by not handling air; for example, the width of a bookshelf is slightly lower because it is delivered
unassembled instead of installed (Bridge and Dodds, 2018). It is even more convenient for
people who use public transit, as it is safer to carry flat packs. IKEA says it was a
groundbreaking factor in innovative solutions to the world of mainstream consumerism.
Kamprad terms this "economic planning," which means the company is implementing an
integrated manufacturing and design approach.
2. Analyse market since its inception, identify that in which market Structure Company operated
IKEA is an operated in monopolistic market structure with many competitors; but, trying
to compete with IKEA; what distinguishes the others from it concept price of DIY. Many other
rivals including Seamens, John Lewis, and B&Q offer similar furniture items but their costs are
not available for everybody. Every customer wants to get a wonderful home with well designed
furniture to make things appear fantastic, and within everyone’s budget and IKEA will satisfy
this vision with millions of their beloved customers all over the world. IKEA is among the
biggest and most competitive, making the market a good competitor.
IKEA’s economic research and focused on the history of IKEA, it demonstrates that a
philosophy and vision begins with just one idea and, throughout the case of IKEA, Ingvar
Kamprad 's vision of offering an assortment of home decor items that are cost effective to the
people have gone viral after becoming highly successful worldwide (Coles and Li, 2020). IKEA
's vision is 'Building a better daily life for millions' IKEA offers its ambition by holding purpose,
quality , design and beauty together-always with safety in mind. IKEA will keep prices under
track precisely because they pay attention to their intelligence information, they include costs
and they deliver limited quality furnishings for all of us.
The basic assumption of IKEA is to provide a large showroom covering several thousand
kilometres of criteria. This method appears to gain new people, as a specialty shop is determined.
There is one IKEA in Dayton in Ohio and encompasses the southern side like Kentucky,
Indianapolis and Memphis and the next one is in Columbus that also covers northern part of
Ohio. Industries still often start competing with rivals on demand in a monopolistic market; it
still has a degree of power for both the price of its goods. Nevertheless, Furniture Company has
many connections as they prefer to market the same items as tables, chairs, tables, wardrobes;
there is a significant gap between IKEA and its competitors.
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