Operations Management - Solutions to Business Challenges

OPERATIONS
MANAGEMENT:
SOLUTIONS TO
BUSINESS
CHALLENGES
Company Selected:
IKEA

Marketing of IKEA
The cost leadership as well as the unique Swedish designs of the IKEA
provide the young customers (primary target customers) with
excellent value
Based on lifestyle changes, the designers and manufacturers have
improvised various new furniture categories like flexible furniture,
interchangeable kitchen as well as living room furniture and so on
(Möller & Halinen, 2018).
The customer base which provides most active response regarding
the products, have the strongest connection with the brand (Sanso,
2016).

Assessment of IKEA’s strategy
Economic value is rendered to the IKEA value chain by locating most
of the manufacturing units of the company over China, SE Asia or
Eastern Europe. As per To et al. (2018), this saves money over the HR
and cost of raw materials
The IKEA have teamed up with the UNICEF to drive out malnutrition,
infant diseases and improvement of literacy. An estimated 100 million
children receives the benefits of IKEA social initiative.
The IKEA supports and actively participates in the initiative of
sustained forestry (Schneider & Bermudez, 2018). The Long term goal
of the organisation is to procure entire wood in the range of IKEA from
the forests that are certified as well as managed responsibly.