Case Ikea Design and Pricing

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DESIGN AND PRICING|
BUSN 6110/ME OPERATIONS & PROJECT charge|
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[Type the author name]|
6/14/2011|

CASE
IKEA: DESIGN AND PRICING

1. What are IKEAs competitive priorities?
IKEAs competitive priorities are footing, be after and function. each(prenominal) wizard of these competitive priorities is explained in detail be starting time:
- Design- mend most retailers use design to justify a higher(prenominal) price, IKEA designers work in
exactly the opposite way. Instead they use design to secure the lowest possible price. IKEA
designers design every IKEA harvest-tide starting with a functional need and a price. accordingly they
use their vast knowledge of innovative, low-cost manufacturing processes to create functional
products, oft co-ordinated in style. Then large volumes are purchased to push prices down
thus far further. Most IKEA products are also designed to be transported in flat packs and
assembled at the customers home. This lowers the price by minimizing transportation and
retention costs. In this way, the IKEA Concept uses design to ensure that IKEA products can
be purchased and enjoyed by as many another(prenominal) mountain as possible.
- Function- Many people have many different needs. IKEA tries to make the most forbidden of a small space.



IKEA designers are always seeking unseasoned ways to improve their customers lives while at the same time saving them money.
- Low Price- Low price is a prerequisite for the IKEA brand and its aim is to serve
many people and to do this the IKEA product range needs passing low price levels. IKEA designers do their part to keep prices low by using production capabilities from other areas in uncommon and previously unimagined ways. For example, having a shirt factory lay down furniture upholstery or using leftover materials from the production of one product to create an entirely new one. IKEA customers also offer to keeping prices low by selecting and picking up and create the products.
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