Writer’s choice (Essay Sample)

Lecturer: Course: Date: IKEA Invades America The main reason for shopping at IKEA is its brand recognition and the quality of its products and services. The organization promotes customer involvement by ensuring that customers choose and assemble the products on their own. The design of the products and packaging allow the customers transport them easily since the furniture can perfectly fit in the car. Furthermore, the shopping store is convenient for the parents since they can comfortably leave their children at a childcare facility owned by the company when they are shopping. IKEA sales representatives also help shoppers choose the correct product, helping the consumers make informed decisions. Therefore, the shopping experience at the company’s stores is overwhelming due to the product variety and self-service that make it easier for the customers to choose the items they need. Brand loyalty and brand recognition among the consumers are the main advantages of IKEA. It is one of the most successful furniture retailers in the world. Consumers view the company as one of the most valuable brands in the world. The firm’s corporate culture of cost-cutting sensibility has helped it produce low priced products. The organization encourages a saving culture to reduce wastes. Some of the strategies the company uses include reducing the electricity consumption rates to save corporate expenditures and enhance productivity. Price consciousness has increased the organization's competitive advantage in the industry and helped the company open low priced furniture stores in different countries. The existence of specialty retailers in the US market enhanced IKEA's country-specific advantages. The enhancement of different styles and sub-styles increased the demand and a variety of furniture products, promoting the market of furniture products at the same time. Moreover, IKEA has a strong customer base in the US, which helps the company grow its international market. Despite IKEA's success in the furniture industry, shopping at IKEA has some drawbacks. The organization has various types of furniture products, but the style types are limited. The firm does not produce complicated furniture products that suit the needs and preferences of all customers. The organization states that it provides only the essential products for the house. The company uses a modern style, limiting the consumers' choice and attracting only a specific demographic. Another drawback is a limited number of sales representatives in the stores, which makes it difficult for each customer to find the required information on each item before making the purchase. IKEA targets low-income and middle-income earners with its low-cost furniture products. In the US, IKEA’s main customers are typical citizens interested in traveling, taking risks, and technology. The company offers Scandinavian design, which is why all its products have a similar style. The business strategy of IKEA has helped the company produce a variety of high-quality home furnishing products at a lower price, which made them affordable to all the consumers in the market. The reduction of operating expenses through the decrease of wastage helps IKEA charge low prices for its products, increasing the volumes of sales and future profitability. This model helps the organization target a vast customer base who are attracted to costs and quality services. It helps the firm increase its growth in the industry in different countries. The company states that its business idea is collaboration between the customers and the designers. The bulk purchase enables the firm to benefit from economies of scale. In addition, the design of their products allows consumers to choose, transport, and assemble the products themselves, which helps reduce the company’s expenses. The decision to globalize its market and production has enabled IKEA to acquire raw materials at lower cost. New products attract more customers, increasing the company's market share and competitiveness. The flexibility the company's designs helps IKEA easily adapt to the new markets, becoming stronger in the global market. Also, brand recognition and its Nordic design have allowed the organization to access new markets and change the nature of competition in the global markets. Therefore, IKEA’s corporate culture focuses on designing quality products at reduced prices for low- and middle-income earners. IKEA should also consider expanding to other countries such as China. The expansion in the USA may lead to the market saturation, which reduces the competitive advantage of the business. Also, compared to the USA, China has reduced labor costs since ...