What Are IKEA’s Firm-Specific Advantages? Creative Essay Example

IKEA is a Swedish furniture company that has strayed from the norms of the industry. As the furniture industry focus on its local market, IKEA has done the opposite and have sought to become globally-competitive. Foremost in its appeal is its low-cost products coupled with good, quality material in each and every store. IKEA also offers convenience and customer involvement throughout the assembly process. Although IKEA has encountered some roadblocks during its expansion in the United States, they slowly gained the public’s favor through their cultural slogans that emphasize quality at a low price.

Despite its success, there are many downsides to shopping at IKEA. What are some of these downsides?

One downside of shopping at IKEA is their product’s durability. IKEA itself does not comment on how long their products are expected to last and they certainly do not claim that it will last a lifetime, which is quite different from other furniture retailers. Some customers claim that products from IKEA typically last a few years and moving would certainly lessen a product’s life span. Another downside is the culture of shopping on your own at IKEA, starting from picking up each material from the store to assembling it at home. There is also a sense of disconnection after a purchase as IKEA does not offer any additional services that can enhance the customer’s shopping experience.

What is the IKEA Business Model?

IKEA’s business model is characterized by its continuous endeavor for quality improvement, the best value, good quality products, centralized design production and maintaining a proactive relationship with its suppliers and setting up a global supply chain. IKEA delves in every stage of the supply chain, starting from sourcing raw materials up to distribution of products to its stores. They invest on efficiency by ensuring that the design and assembly of furniture is easy and boxes are flat and stackable to ensure easy distribution. IKEA also ensures that their showroom remains inviting and feature updated designs to encourage consumer sales.

Describe how IKEA’s expansion has reenergized mature markets around the world and changed the competitive situation?

Mature markets around the world have been re-energized as IKEA has revolutionized the world of furniture retailing. Gone are the days of expensive furniture and waiting for weeks before it arrives. IKEA has certainly revitalized the industry by promoting competition and eliciting aggressiveness in business strategies. In addition, IKEA has transformed consumer behavior as shopping for furniture now becomes a lifestyle and an expression of one’s personality. IKEA also revitalized the market though its relentless innovation in terms of creating new products, creating new styles and design as well as marketing strategy.