1. What are IKEA’s competitive priorities?
IKEA is a multinational establishment which was founded in Sweden by Ingvar Kamprad. The company’s name is an acronym of its founder’s name and the farm and village where he was brought up. The company is popularly known for selling and designing reasonably priced home accessories, appliances, and furniture. The company’s competitive priorities are coming up with products which are less expensive and the same time never making the customer feel cheap, a factor identified in the company’s corporate slogan, “low price with meaning”.
2. Describe IKEA’s process for developing a new product
The first step in developing a new product is coming up with a sketch on a drawing board where calculations are also done to determine the cost of production for that particular product. The second step is choosing the best suited manufacturer for the said product where it will be produced and packaged. After establishing the cost of production and having a manufacturer in place, a designer is then sought after, and a design is selected.
3. What are the additional features for developing a new product (beyond its design process) that contributes to creating exceptional value for the customer?
Some of the additional features other than the design process itself that contribute to creating exceptional value for the customer when developing a new product are the product’s function, the product’s price, the raw materials that will be used to make the product, and fabricator’s capabilities.
4. What would be important criteria for selecting a site for an IKEA store?
As a multinational company, IKEA has established branches in numerous countries globally. Some of the most important factors to consider when setting up an IKEA store are political and economic stability of the locality, secondly availability of labor and infrastructure of the area, and, thirdly and most importantly, the product or products to be sold in the newly established IKEA store.