IKEA Company, Research Paper Example

The company IKEA is a Swedish home furnishings retailer.  It has around 231 stores in over 33 different countries.  IKEA is one of the few major store chains to have retail outlets in both Israel and the Middle East.  They already represented in Europe, USA, Canada, Asia and Australia, and as such have a truly global presence.  The company also promotes mail order  through its catalogue  selling hundred and 20,000+ products with the distribution of over 160 million copies worldwide.  The company has a famous reputation for DIY kits aimed at consumer self-assembly.

IKEA is a hugely successful multinational corporation and has concentrated on a relatively simple business strategy.  i.e., a top perspective cost leadership, product differentiation and value for money.  All of this whilst not negating quality, which brands it uniquely IKEA.  In addition, IKEA modified the value chain, finding a process whereby the customer was integrated.  And as such, creating a two-way value system between customers and suppliers.  The company aimed at getting the customer to realize that their role was not to consume value but rather create it. ‘ “Awareness of our brand is much bigger than the size of our company. That’s because IKEA is far more than a furniture merchant. It sells a lifestyle that customers around the world embrace as a signal that they’ve arrived, that they have good taste and recognize value.’ ( Anders Dahlvig CEO of IKEA) .