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Business Organization of IKEA - Essay Example

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The paper 'Business Organization of IKEA' presents IKEA which has become the leading furniture retailer in the world by focusing on creating high-quality products with great design and selling them to the mass market as opposed to focusing on the high-end market…
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Business Organization of IKEA
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It is rare for an organization that focuses on the mass market to also excel in design. The creation of high-quality products requires a substantial investment. First, the organization needs to hire talented designers and other employees. Second, it needs to source for high-quality raw materials. Third, it needs to create a process that ensures that the products that are produced are of the highest quality standard possible. IKEA has managed to adopt management practices that reduce its overhead costs. In addition, it has developed sustainable operations. As a result, it is able to create high-quality furniture at competitive prices while also remaining profitable.
In addition, it is costly for other furniture retailers to create high-quality products with excellent design while keeping the price low. Furthermore, building brand awareness that IKEA has built requires a consistent and expensive marketing effort. As a result, the organization has a competitive advantage over its competitors.
The organization has developed an organizational culture that focuses on customer satisfaction. In addition, it has a long record of accomplishment in the furniture business. Consequently, it has developed the supply chain and distribution channel that is essential for a retailer. Furthermore, it has developed substantial industry expertise. Read More
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