Mgmt 410 dis2
DQ2: Read IKEA Scenario On Pages 69-71.
DQ2: Read the IKEA: Design and Pricing case on pages 69-71. Answer questions 1, 2, 3, 4. In addition, research IKEA and relate one significant/important/interesting aspect of IKEA that you will share with others. Be sure to reference it correctly. Remember to respond to at least 2 other students’ postings.

Example of student writing

1. IKEA’s competitive advantage is low prices with quality items. Also having a vast inventory of different items. They are able to provide good quality items while also being affordable.

2. First it starts with the product developers. They are told how much it will cost in stores and have to develop a product that can fit into that price range. They think about how much the color would cost all the way to how much shipping would cost. They use internal designers to get many designs of the product. They refine the ones that look good until they settle on one. The whole time they keep in mind keeping costs down.

3. IKEA has perfected making things flat. By making most items flat and putting them in boxes they are able to fit more per pallet. BY doing this they can ship more per truck load. This is able to help save them money which allows them to price things lower. They also have the self service are which customers pick up there own products to take home and build, by building your own furniture at your house, IKEA can set the price lower.

4. Choosing an area that is well populated would be important for selecting an IKEA site. You want to place it where it is easy to get to and where people are interested in going. Also, you need to find a large lot because IKEA’s are huge building. You need a lot of space for the building and parking lot.

Globally on average 2,000 new products are released each year. This helps show how massive IKEA is. They create and design that many new items each year. With all of them being focused on having a low price.

Kelly June 14, T. (2019, June 14). 13 things you never knew about Ikea. Retrieved September 29, 2020, from https://www.idealhome.co.uk/news/ikea-facts-193613