Ikea Values Based Service Analysis Report - 2362 Words

IKEA Values-Based Service Analysis Report Andrea Florenz Operations Management: Solutions to Business Challenges Dr. John Palmer April 10, 2016 Introduction The intend of this paper is to assess IKEA’s strategy. The three sources of value (economic, social, and environmental) in IKEA’s value chain will analyzed. Along with an analysis of their strategy in regards to intangible products and customers. Create a set of 4–6 performance measures for evaluating your managers that integrates IKEA’s values (economic, social, and environmental) as discussed in the article written by Edvardsson.as if I were the vice president. For each performance measure, I will identify one specific process measure that demonstrates how well†¦show more content†¦IKEA is cost and resource conscious and respect the requirement of the people (Edvardsson, Enquist, Hay, 2006, p. 236). IKEA does research in regards to the market and the consumer using several sources. This gives them a basic understanding of the culture/ expectation of their consumers. For instance â€Å"Chuck out the chintz† is popular in Britain and many people in that country knows IKEA only with their phrase. They create a significant impact on the people about the brand. IKEA is making use of content marketing with an objective of improving people’s everyday lives (Walgrove, 2014). IKEA sends designers to the homes of their customers to get their input, suggestion and lastly complaints. This concept has allowed to raise the bar and be innovative an definitely has created differentiation in the market positioning. The product quality is uniformed and the cost of said products are lower in all country. However the location will determine variations of the product, to suit, the market in which they are located. Social media and micro-blogging are used by the company to position them in the market (Chu, Girdhar, Sood, 2013). by doing this they reach the target market on a large scale. Utilizing Facebook and other social sites to encourage consumers to share their experienences Value Chain IKEA’s core values are categorized into three P’s namely: †¢ Price: FocusingShow MoreRelatedIKEA Global Sourcing Challenge: Indian Rugs and Child Labor1176 Words   |  5 Pages Case: IKEA Global Sourcing Challenge: Indian Rugs and Child Labor Summary In this case, it is known that IKEA s procurement model is the mode of global sourcing. IKEA products are shipped to the 26 distribution centres from the trade area after procurement, and then delivered to the shopping malls in the world. 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