Corporate Strategy and Governance: IKEA Customer Service Analysis

This report provides a critical analysis of IKEA's customer service, examining its role as a competitive advantage within the framework of corporate governance. The introduction outlines the importance of customer service in meeting customer needs and maintaining an ethical environment, focusing on IKEA as a case study. The report aims to identify customer service issues, determine its importance, and assess its impact on company services. A literature review explores customer service concepts, IKEA's challenges, and strategies like customer engagement, online communities, and Porter's generic strategies. The research methodology employs an inductive approach with an exploratory research design, using an interpretivism philosophy. Data collection involves qualitative primary and secondary methods, with data analysis through qualitative techniques. Sampling will be done using a simple random sampling method with 20 customers. The report concludes with ethical considerations, emphasizing the importance of safe and secure research practices.

corporate strategy
and governance

Table of Contents
Title: “A Critical analysis of customer services as competitive advantage”. A key Study of
IKEA. ..............................................................................................................................................3
INTRODUCTION/ BACKGROUND ............................................................................................3
LITERATURE REVIEW ..............................................................................................................3
RESEARCH QUESTION ...............................................................................................................5
RESEARCH METHODOLOGY ....................................................................................................5
REFERENCES ...............................................................................................................................8

Title: “A Critical analysis of customer services as competitive advantage”. A key Study of
IKEA.
INTRODUCTION/ BACKGROUND
Corporate governance has become a buzz word in the corporate world. All types of
organisation and business owners applying the concept of corporate governance in order to meet
out the customer needs and ethical environment within workplace. This process involves the
proper structure or procedure designed for roles and authorities. Present research will be based
on corporate governance for which study will be taking IKEA which is the furniture retailer
company that spread at wider level. Present study based on to identify the analysis of customer
services as a competitive advantage which might be helpful to get over from the corporate issues
(Filatotchev and Stahl, 2015). Further report will be discussing the issues challenges facing by
the company. The main purpose of this present study is to evaluate the solution to keep customer
focused on the product or services of IKEA.
The reason for taking this issue further, it helps to take the long-term goals and make it
more effective and influencing. Customer service is very significant issue for the IKEA which is
important to be reduced in appropriate manner. Overall, it helps to take the new managing
successful business growth. Overall, company needs to take some strict action to get over from
this issue as soon as possible.
Aims: “A Critical analysis of customer services as competitive advantage”. A key Study of
IKEA.
Objectives
 To identify the issue of focussing on Customer service as competitive advantage
 To determine the importance of focussing on customer services as a competitive
advantage.
 To identify the impact of issue on company services.
LITERATURE REVIEW
According to Peppers and Rogers, (2016) focussing on Customer service refers to the
activities in which company focused on the customers and offered services as per the buyers
needs and wants. Each meeting of buyer helpful to reach milestone of the company. IKEA has
been faced many issues related cost and selection of products or services. Buyers criticising the

cost of selection which become very difficult for the company to full fill the needs of customers.
In order to keep sustain the profit, IKEA has launched their new sister company which is Interred
IKEA for sustaining the brand concept.
Communication with customers IKEA needs to adopt some concepts of customer
engagement that helps to protect the interest of customers and maintained the profit of the
company as well. Apart from that, it also helps to contained the effective work pressure and
helps to keep sustained the better environment growth. Communication is the best forming
results and growth (Customer engagement persuasion process. 2018).
Online customer communities: Online Customer communities is the best model or
strategy to get the customer attraction. Online customer communities by blogging, forums,
discussion boards and online community phenomenon have evolved to a new level of
pervasiveness.
Management of online customer communities: Rothaermel, (2015) Following engaging
with customers via online communities leads to another step of proactive and strategic
management of the range of online performing task. In order to take better implementing process
goals.
As per the IKEA must break the mould to overcome challenges, (2018) customer focus is
helpful key element which connects company directly with their buyers. For that, IKEA needs to
make innovative product or services to meet the client needs. Manager needs to select fresh
approaches and idea by measuring the market research, competitors’ position and their strategic
performance. Rothaermel (2015) that IKEA facing is sheer size through which company facing
issue of delivering the products to the end consumers. This is the reason for which company fails
to reach the customer needs in appropriate manner.
According to Peppers and Rogers, (2016) Porters Generic strategies This strategy of
generic strategies can be used to determine the direction of the business. Michael porter uses 4
strategies that should IKEA needs to adopt in order to get the customer satisfaction outcomes and
growth.
Sihite and Simanjuntak (2015) Cost leadership This is the best strategy which has been
offer the lowest possible price. Cost leadership is the best strategy to adopt the average prices
and market target. Overall, this strategy should needs to adopted by the company to take the
market growth. Company should try to keep the costs as low as possible.

Differentiation It is the another strategy or market positioning system growth.
Differentiation defines the company unique from the different companies. This strategy helps
IKEA to make its product different from others.
As per the Moon and et.al. (2014) Cost Focus and lowest possible price is the niche
market where company chose customers to satisfy their needs and wants. Under which company
needs to ensure about the costs has to be remain low. This can help IKEA to keep the customer
focus towards the product and services and can easily meet the customer focus.
Differentiation Focus This strategy focuses to keep company brand loyalty sustained in
the market as long which is very essential to keep product unique.
RESEARCH QUESTION
Q. What are the issue of focussing on Customer service as competitive advantage
Q. What are the importance of focussing on customer services as competitive advantage.
Q. What are the impact of issue on company services.
RESEARCH METHODOLOGY
Research approach: Research approach based on the philosophical concept which
relevance of hypothesis to the research topic. It is the plan or a procedure which consists steps of
broad assumptions in order to evaluate topic in detailed manner (Taylor, Bogdan and DeVault,
2015). There are two types of research approach deductive and inductive research approach.
Inductive approach starts with observation and then comes to the end process. Besides,
Deductive approach has been based on developing hypothesis. Present study will be based on
inductive approach to identify the issue of focusing on customer meeting. This approach helps to
identify the new approaches and new managing resources. In order to meet out the needs and
managing task full sources to identify the effective problem identification sources.
Research Design: Research design is the different textbooks place different meaning on
research design. Research design divides into two parts exploratory and conclusive. Exploratory
research helps to explore the research topic to identify the proper solution to existing issue. On
the other hand, conclusive approach method helpful to generating findings for making right
decision-making step (Taylor, Bogdan and DeVault, 2015). Present research will be use
exploratory research design in order to explore the reason of customer issues in terms of dealing
with profit outcomes. Exploratory research can easily explore the new managing successful

business growth. This approach helps to explore the problem issue and can easily determine the
new ones.
Research philosophy: research philosophy is the most crucial element of methodology
which discussing the research topic in detailed manner. Every researcher requires adopting their
one philosophy of the study to conduct the research approach out of two methods Positivism and
Interpretivism. Positivism philosophy based on real things or on the facts which has been existed.
It helped researcher to collects number of data and information through observation. On the
contrary, Interpretivism adopt approach which taking the involvement of human interest. Present
study will be using Interpretivism approach style to conduct the best services or goals.
Data collection: Data collection is another significant element in research process which is more
helpful to create deep understanding of study topic to the end results. Data collection is the
process where researcher collects data through two methods primary or secondary collection.
Primary data has been collected by two methods qualitative and quantitative. Qualitative method
based on words, emotions etc. those which are not quantifiable. On the contrary, quantitative
method based on numerically or mathematically term from mean, median, mode. Present study
will be taking qualitative primary method of data collection. This approach is easier and more
flexible to understand and conduct the study.
Secondary data collection techniques collect data through books, journals, internet with
the help of collecting data from interviews, observation, questionnaire etc. Present study will be
taking primary as well as secondary data collection tool
Data analysis: analysis is the process of observing the collected data through two types of
techniques qualitative and quantitative. Qualitative technique analysis the data through thematic
presentation, tables and graphs (Mackey and Gass, 2015). Contrary, quantitative technique
analysis the data through numeric term with the helps mean median and mode. Present study will
be analysing data through qualitative method by conduct questionnaire with 20 customers.
Sampling: Sampling is another significant process of research, sampling can be
explained as a specific principle used to select member population to be included in the study.
Sampling can be divided into two methods probability sampling and non-probability sampling
method. Probability sampling is the method in which every member of population gets a chance
to participate in research process. On the other hand, non-probability sampling under which
researcher restrict to select some group of members for the study. Present study will be using

simple random sampling for conducting survey with 20 employees. Simple random sampling is
easy to adopt and find out the best approachable results.
Ethical consideration: Ethics are very much crucial in research process to keep all
activities safe and secure. It helps to ensure ethical environment within the working atmosphere
which needs to be followed by researcher.

REFERENCES
Books & Journal
Filatotchev, I. and Stahl, G. K., 2015. Towards transnational CSR. Corporate social
responsibility approaches and governance solutions for multinational
corporations. Organizational Dynamics. 44(2). pp.121-129.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design.
Routledge.
Moon, H. C. and et.al., 2014. Extending Porter’s generic strategies: from three to
eight. European Journal of International Management. 8(2). pp.205-225.
Morsing, M. and Roepstorff, A., 2015. CSR as corporate political activity: Observations on
IKEA’s CSR identity–image dynamics. Journal of Business Ethics. 128(2). pp.395-409.
Peppers, D. and Rogers, M., 2016. Managing customer experience and relationships: A strategic
framework. John Wiley & Sons.
Rothaermel, F. T., 2015. Strategic management. McGraw-Hill Education.
Sihite, M. and Simanjuntak, M. A., 2015. The competitive strategy in green building for
Indonesian stakeholder’s. International Journal of Innovation, Management, and
Technology. 6(1). pp.8-15.
Taylor, S. J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Online
Customer engagement persuasion process. 2018. [Online] Available
through :<http://usir.salford.ac.uk/32805/1/contribution754.pdf>.
IKEA must break the mould to overcome challenges. 2018. [Online]. Available
through :<https://www.ft.com/content/71c730ce-4b5c-11e7-919a-1e14ce4af89b>.