Friday, May 4, 2012


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The business idea of IKEA is to put forward an extensive collection of home furnishings with good design and function at a price low enough for as many people as possible. IKEA responds to home furnishing needs from people worldwide with different styles, incomes, and requests. The business is based on a partnership with customers. IKEA offers attractive, durable furniture at low prices and the consumer chooses a product, picks it up at a self-serve warehouse, and then assembles it. By not charging customers for something they can do on their own, they are able to save money.

IKEA offers an assortment of products in several ways. First, it is extensive in function. Their inventory includes everything from plants to living room furniture, and from toys to kitchen wear. Pretty much every basic requirement to build a home is available at IKEA. Secondly, the company is broad in style because it offers products that are modern, practical, and attractive. By combining function and style, the variety existing at IKEA is appropriate for most homes by not being overly extreme or decorated in excess, but it is unique and focuses on what is important.

Other than function and a wide variety, IKEA is determined to offer all their consumers with the lowest prices possible. Product developers search for manufacturers who can produce merchandise in the most cost-effective way. There is a team behind each product that consists of designers, purchasers, and developers who get together to determine who can produce the product at the best quality for the right price. And because consumers participate in receiving the product and assembling it, they are able to avoid unnecessary fees like delivery cost. IKEA is constantly working to bring consumers lower prices. The low price is key to the vision of bringing a better everyday life for as many people as possible.

Based in Sweden but available in thirty-one countries around the world, IKEA operates on a franchise basis. The IKEA of Sweden is accountable for the complete IKEA collection and all products in the collection are clearly labeled “Design and Quality, IKEA of Sweden.” The top five sales countries include Germany, the United Kingdom, the United States, France, and Sweden.

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