IKEA CASE STUDY

IKEA was established in 1943 with the goal of making quality, cost-effective home
furnishings available to as many people as possible. The company's innovation is
driven by a focus on achieving high standards of quality, design, and performance at
affordable pricing. The success of Swedish furniture retailer IKEA depends heavily
on effective operations management. As the company has expanded over the
course of nearly eight decades, its management methods have allowed it to provide
more than 9,500 products at fair rates.  

IKEA has built its name on its smart and efficient handling of: 

 Product and process design

 Inventory
 Quality assurance
 Supply chain networks
 Back-end operations

Because of its management practices, the company has become the most valuable
retail furniture brand in the world and is an example in management and business
textbooks everywhere. IKEA is an innovative leader in effective management
techniques and an example of what a company or organization can gain from using
efficient operations management. The company's innovation is driven by a focus on
achieving high standards of quality, design, and performance at reasonable costs.
This effective business strategy produced the flat packing method for retail furniture
in 1956, which established the brand. IKEA needs effective operational management
at all organizational levels to maintain its low prices, including product design,
sourcing materials, flat packing, distribution, and handling demand variations. IKEA
maintains a competitive edge by combining retail stores with warehouse facilities and
a self-service strategy to save transport and product storage costs. 
IKEA has demonstrated their worth by maintaining a significant sustained
competitive advantage, however there are dangers in the market that need to be
examined. IKEA must be innovative in order to maintain its substantial market share
given the number of competitors in the furniture industry. Customers have many
options in the furniture sector, making it crucial for businesses to stand out.

IKEA's global penetration strategy would be implemented with the aid of digital
marketing as an essential component. It would raise brand recognition, which surely
would grow the market share and boost online sales. IKEA has demonstrated a
commitment to digital marketing, but they might make a bigger out of it to strengthen
their position in the market. By demonstrating to consumers that the business is
concerned with the environment, this strategy would also serve to promote the
company's sustainability and enhance its brand image.

Digital Marketing Strategies:

 Price: Online shopping discounts, student discounts, and family discounts

 Product: Continue showcasing their augmented reality (AR) technology while

showcasing their smart home technologies.

 Place: To reach a younger target group, use social media more. Also, make
your online store's website easier to use and include all of the items you sell
there.

Overall, IKEA will be able to accomplish their corporate goals of financial expansion,
brand positioning, and client acquisition by progressively embracing digital
marketing.