A Study of IKEA’s Product Design and Pricing Strategy Essay

IKEAs competitive antecedence is based on producing quality products at a low price. This concept is exemplified in its corporate mantra price with meaning. This is achieved by creating inexpensive products without making its customers feel cheap. This devilfish is followed from bod to the customers home. 2. expose IKEAs process for developing a spic-and-span product?IKEA starts the process by picking what the new product leave cost. This will help to determine color, materials used, and approach pattern. attached they choose a manufacturer utilize their network of manufactures. They do this by ascertain which manufacturer can most efficiently produce the new product. Next they design the product, keeping in mind efficiency, ie. Packaging, merchant marine ect. Every inch of the product is reviewed in order to maximize their ability to manufacture, enchant and store the new product. Finally they send off it. While transferral, the key word is flat, in fact the flatter the better. From vacuum backpacking pillows to exclusively producing disassembled furniture, IKEA is committed to not shipping air.Lastly they must sell their new product. 3. What atomic number 18 additional features of the IKEA concept (beyond their design process) that contribute to creating exceptional value for the customer? The way they ship their products is clearly ace of its greatest contributors to its low prices. By stay flat, shipping only 65% all-inclusive containers and by building its distribution centers or so ports, railways, and highways IKEA is able to ship with great efficiency. They are able to ship the maximum summation of products, at the pay time to the right stores keeping their prices 20 the 30 share lower than their competition. 4. What would be important criteria for selecting a site for an IKEA store? IKEA stores require a large area to accommodate a large showroom, daycare and food motor lodge