DESIGN AND PRICE

Case Presentation
by Group 3:
-Bernadine Trisha (29323541)
-Ester Kurnianti (29323350)
-Nadhila Dzikrina Y. (29323543)
-Muhammad Alif S.
-Sarah Ayu Aqila (29323542)
-Yumas Gia Nanda (29323355)
 ABOUT US
IKEA is a Swedish multinational conglomerate that
designs and sells ready-to-assemble furniture,
kitchen appliances, decoration, home accessories,
and various other goods and home services. IKEA
known for their minimalist and modern aesthetic
product, they also offer restaurant serving Swedish
food. Started in 1943 by Ingvar Kamprad and
currently legally headquartered in the
Netherlands, IKEA has been the world's largest
furniture retailer since 2008. Global presence with
over 400 stores in 50+ countries.
 VISION
“To create better everyday life for the many people.”
MISSION
“To offering a wide range of well-designed, functional
home furnishing products at prices so low that as many
people as possible will be able to afford them.”
1. IKEA’S CORPORATE MANTRA IS “LOW PRICE WITH
MEANING” EXPLORE AND EXPLAIN THIS MANTRA IN
IKEA VISIONS AND MISSIONS.
IKEA's corporate mantra "Low price with
meaning"
embodies their commitment to offering
affordable products without compromising
quality and meaning.
This mantra aligns with IKEA's vision and
mission by emphasizing their dedication to
providing well-designed, functional, and
sustainable home furnishing products at
prices that are accessible to as many people
as possible.
They aim to create a better everyday life for
many people by ensuring that their products
are not only affordable but also meaningful in
terms of quality, design, and functionality.
03
IKEA’S STRATEGIES, DESIGN, AND
SUPPLY CHAIN MANAGEMENT?
SUPPLY CHAIN
STRATEGIES DESIGN
MANAGEMENT
Low price Strategy Functional Design Vertical Integration
Differentiation Strategy Scandinavian Influence Efficient Logistics
Market Expansion User-Centric Design Sustainable Practices
Strategy

11
IKEA STRATEGIES WITHOUT COMPROMISING
CUSTOMER NEEDS

FLAT-PACK & SELF-ASSEMBLY GLOBAL LOCALIZATION

AFFORDABLE PRICING E-COMMERCE & DIGITAL PRESENCE

INNOVATIVE DESIGN QUALITY ASSURANCE

SUSTAINABILITY INITIATIVES FEEDBACK & IMPROVEMENT

IN-STORES EXPERIENCE SOCIAL RESPONSIBILITY

IKEA DRIVES DOWN COSTS OF ITS
PRODUCTS THROUGH VARIOUS MEANS:
Efficient Supply Chain
01 IKEA minimizes transportation and inventory costs

Flat-pack Design
02 Reducing packaging materials, transportation costs,
and assembly expenses

Self-Service Model
03 Self-service model reduces labour costs associated
with sales staff

Long-term Supplier Relationships

04 Collaborating on cost-saving measures, improving
efficiency, and leveraging economies of scale in
sourcing materials.
 01 02 03
LOW COST INNOVATION QUALITY

Innovating in product IKEA maintains a

Offering affordable design, supply chain commitment to quality
products, achieved through management, and to ensure customer
efficient operations, cost- customer experience to satisfaction and loyalty
effective design, and stay ahead in the
strategic sourcing. market and meet
evolving consumer 04
needs and preferences
CONVENIENCE

convenient shopping
experience for customers

IKEA'S COMPETITIVE PRIORITIES through its self-service

model, easy-to-assemble
products, and accessible
store layout
STRATEGIC POSITION RELATED TO REDUCING OPERATIONS AND SUPPLY
CHAIN COSTS WHICH ARE IMPORTANT FOR THE FIRM’S SUCCESS.

IKEA strategically positions itself by emphasizing efficiency and cost-effectiveness

throughout its operations and supply chain, aligning with its target market of young,
budget-conscious furniture buyers. The company has several unique activities that
contribute to its success in reducing operational and supply chain costs while meeting
customer needs:
- Self-Service Model
- In-House Design and Manufacturing
- Ready-to-Assemble Furniture
- Self-Serve Warehouses

In summary, IKEA strategically positions itself by set of activities that prioritize efficiency,
cost-effectiveness, and alignment with the preferences of its target market.
 Making things flat is an IKEA obsession, Explore it’s
impact to design, customer and supply chain

Impact to the design: By cutting expenses and facilitating transportation, flat-pack furniture opens up
design to a larger audience. This supports the democratic design values of IKEA and makes high-quality
design affordable to a wider audience
impact to the customer: Assembling and personalising their furniture allows customers to get involved
in the manufacturing process. This can encourage a sense of responsibility and be effective but it also
takes time, effort, and even extra tools.
impact to the supply chain: effective logistic, Flat-pack furniture uses as little space as possible when
being transported and stored, which lowers expenses and emissions. This helps to cut costs for
customers and is consistent with IKEA's sustainability initiatives.
Flat-pack construction relies on standardized components and assembly processes, facilitating mass
production and ensuring consistent quality across markets. However, this can limit variation and
customization options.
THANK
YOU