Sample Essay

Huge market share and market presence:

This is one point which has been discussed throughout the paper and the reason behind this is because it’s a fact that IKEA has a major market share in its particular industry. Out of the 301 stores that the company has in 37 countries, 267 stores in 25 countries are solely owned by the company itself and the rest of the 34 stores in 16 countries are owned and run by franchises that are not a part of the IKEA group. Besides that IKEA also has 41 trading service offices in 30 countries and 28 distribution centers and 11 customer distribution centers in 16 countries around the world (ReportLinker, 2009).

The main idea behind IKEA is to provide home furnishing products at low prices. This idea is behind all the operational activities of the company that is the way the products are designed, its transportation, sales and how they are assembled. The developers and designers at IKEA try to focus on designs that offer the lowest possible price to the customer. In this regard that strategy which is being adapted by the company is that first they design the price tag of a particular product, and after that develop the product itself which suits that tag price.  Apart from that another technique on which the group put thought is that of maximizing the production equipment, waste management, using the raw material effectively, and using the technical innovation to good extent. In addition to all this another feature that the company offers is that of high customer involvement. This means that from the collection of raw material to its transportation and finally assembling all these steps are fulfilled by the customer themselves. This strategy which has been adapted by IKEA is to central the product offerings and keeps the flow of the customers coming at a high rate (Datamonitor, 2010).

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