Friday, October 18, 2013

Making things is quite easy, making things better – in life and home – is hard


IKEA is famous internationally for its small prices and ingeniously designed furnishings.

The IKEA’s founder, Ingvar Kamprad, created a new way to stay in the business market. He studied how to draw his own furniture, purchased raw material from dealers in Poland, and created his own display.

Today, IKEA is the world’s largest furniture retail company and has around 300 stores worldwide.


When IKEA entered into the Chinese market, immediately experienced the market and the customers’ needs in order to satisfy the clientele; it understood quickly that small and functional apartment was the demand in such market.

When IKEA invested in the US market, tried to reproduce the same business model but it had to become accustomed to the American customers’ demand, such as king size bed and huge closets. IKEA completely modified his marketing strategy in order to gain US market share.

Since 1999, IKEA has been functioning on eco-friendly concept. It has been asking suppliers for green products, raising the use of renewable energy in its stores, using green and easy shipping package and charging for plastic bags.

This strategy did not have a really good impact in an emerging market as China where global brands will not have enough success applying a low-price tactic.  
Any company can create a superior product for a high price, or a below standard product for an inexpensive price but manufacturing good products at affordable prices requires developing processes that are innovative, green and cost-effective; that is why IKEA makes the difference in the industry.

IKEA takes almost 5 years to develop a kitchen, in comparison to an average of 3 years for a car.  

Why does it take so long to design an IKEA product? There are a lot of steps to design an IKEA product. There are a lot of people involved and they investigate on all aspects such as visiting schools, producers, and individuals. They try to live together with their customers and solve their problems. For example – they took long time to develop the bamboo organizer for cutlery and utensils because the first version had a smell of wood that during tests the customer did not like so they spent a lot of time to eliminate it.

The IKEA’s goal is to create a “democratic design” for kitchens that will be effective everywhere in the world. It is also planning to cut prices by 1% in the fiscal year even though sales are not increasing as forecasted.

In conclusion I agree with IKEA’s spokesman: “Making things is quite easy, making things better – in life and home – is hard”.




3 comments:

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  2. That is mean IKEA was global company. Then, they changed to international. I believe that IKEA has a perfect way to be the best furnitue company in the world because of its thinking method.

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  3. IKEA is a great company, they go from global to international with “Making things is quite easy, making things better – in life and home – is hard”. Bottom line, IKEA is a successful company.

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