Affordability is a key strength of IKEA through the maintenance of its cost-effective approach

(Farooq, 2022). Without inhibiting product quality and the expectation of customers, IKEA leans on its
strong and unique business model to accomplish this desired strength. Design selection and pricing are
the first steps in the affordability process (Tyler, 2018). Working hand in hand with their design team
and suppliers, IKEA confirms or denies a product’s birth, depending on whether it can meet both quality
and acceptable pricing standards (Tyler, 2018). Building to meet an expected price point to keep costs
low as opposed to using uncontrolled resources, leaving the consumer to pay for the difference has
proved to be an impactful strategy for the home décor store. An additional method to their low-cost
advantage is “flat packing” introduced by IKEA’s founder, Ingvar Kamprad, for handling unassembled
furniture parts (Tyler, 2018). The flat pack warehouse storage perk eliminates the assembly cost and
keeps inventory readily assessable requiring the consumer to put all the pieces together for the desired
result (Tyler, 2018). Low cost in exchange for a bit of elbow grease? That sounds like a deal to me!

While there are several, another internal strength of IKEA is its ability to focus on customer
knowledge (Jurevicius, 2021) to keep shoppers intrigued, enticing them to return. IKEA strives to make a
shopping experience for the customer as they leisurely peruse the massive showroom, taking them
room by room and providing endless opportunities through design inspiration. Given the target market
age range being 20-35 years old (Target, n.d.), IKEA takes the guesswork out of styling their products for
each room in the home for those busy college students and young families always on the go. The
reinvention of products each season is another way to keep appeal and stay up with the latest design
trends making sure the customer is offered a variety of new home décor each and every visit (Jurevicius,
2021). Recently IKEA has combined its common research methods with now digital research to obtain
feedback provided by its customers. Using their “real-time” reviews allows for IKEA to quickly adjust and
respond to the needs and suggestions of its consumer to make their experience even more interactive
(Tesseras, 2021). An example is the newly implemented bargain department within IKEA warehouses
from a buy-back furniture process implemented to keep up with customer sustainability desires
(Tesseras, 2021). IKEA’S initiative to stay connected to its consumers has been profoundly impactful
making their internal strengths shine.

Farooq, U. (2022). Ikea Swot Analysis. Ikea Swot Analysis | Retail furniture Brand Swot Analysis |
Marketing Tutor

Target Audience Insights. (n.d.) Identifying a Target Market. 3. Target Audience Insights | #IKEAMyWay
(wordpress.com)

Tyler, J. (2018, October 12). Here are IKEA’s secrets to keeping its prices so low. Here are IKEA's secrets
to keeping its prices so low | Business Insider India
Tesseras, L. (2021, January 29). How Ikea is using digital to gain ‘richer customer insight’. How Ikea is
using digital to gain 'richer customer insight' (marketingweek.com)

Jurevicius, O. (2021, October, 22). SWOT Analysis of IKEA. IKEA SWOT Analysis - SM Insight
(strategicmanagementinsight.com)