Case Study: Ikea

Case Study IKEA

n/a

College

Operation Management

BUS

Prof. J

January 21, 2010

Case Study: IKEA

Question 1: IKEA’s competitive priority is not just based on one priority but several. Their designs are in line with the corporate mantra, “Low Price with meaning”. They produce quality products at a low completive price. They produce product that are unique and are customizable for the consumer home or office. IKEA is able to keep prices low because they own the products from the design phase to manufacturing, and distribution.

        Question 2: A new product starts with a team of designers, developers, and purchasers. The cost of the new product is factored in at the drawing board. This team determines which manufacturer can efficiently produce the new product. During the design phase the packing and shipping of the new product is reviewed. The team is determining to maximize every phase of the manufacturing, shipping, and the storage of new product. The distribution and logistics of the new product is important to keeping the cost low. IKEA biggest accomplished was to keep their products flat, disassembled in way to keep the product flat in a box to maximize storage space in containers. IKEA is committed to not shipping their products over the air.