Intro 2 case

IKEA has sustained in the house furnishing market because of its sustainable competitive advantages
(SCA). The SCAs of IKEA are

1. Low prices owing

IKEA has established itself as the provider of home furnishing items that are stylish, but, then
again, affordable. This has established it as a brand among customers to turn to. IKEA caters to a
huge market in the US, China and Russia. But the raw materials for the manufacture of the are
purchased in bulk and this, combined with mass production entails economies of scale. Thus
IKEA can afford to lower its prices which it can transfer to customers while this doesn’t eat into
the company’s profit margins.

2. Poproduct modification thru innovation

Product modification to suit the customer is the trademark of IKEA. IKEA lays emphasis on modifying
the product so as to make it easier for the customer to assemble and use it. Traditional furniture is large
and cumbersome. IKEA has modified the product design. Their products are flat packed, that is, the
product is made in parts that are easy to transport and assemble. This help IKEA in packing and
transporting the products and thus helps them save on warehousing and transportation charges. It is
easy for the customer to transport and assemble IKEA products and this endears them to the company.

3. Innovation
4. Waste management