La-Z-Boy strives for products that are synonymous with quality and comfort, while Ikea chooses to offer many products for the home at a cheap price. Ikea was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, with the idea of offering products for the home with good function and design at prices much lower than any competitors (Albarrak 2). The Ikea business approach is strong and versatile, and attempts to create modernly designed goods at affordable prices in an effort to reach a very broad audience of consumers (Dahlvig). This model has led to Ikea being the largest furniture retailer in the world, and consequently the third largest consumer of lumber in the world behind Home Depot and Lowe’s (Butler). Ikea has achieved this success by offering inexpensive and affordable goods for the entire household in a one-stop shopping experience.
By focusing on sales, service and execution, which helped the company, achieve considerable sales growth in the past few years. Lowe’s Company, Inc. is its only direct competitor up to date. [pic] Source: www.christopherlinker.com Since the market is dominated by Home Depot, Inc. and Lowe’s Company, Inc., buyers do not have much choice in selecting the company for home furnishing. Besides, Home Depot and Lowe’s offer advanced product features and quality that are not currently offered to the customers by other companies. Thus, with limited choice of company selection for home furnishing and high switching cost, the bargaining power of customers in this industry is quite low.
For this task I have been asked choose a business to analysis how the business has been designed covering the points I have been discussed in P1, P2, P3. The business I have chosen is Amazon. Amazon objective are to become a better place for customers to buy and sell products to the highest standards while they still making money, they also discover new products the releases that customers would be interested to purchase, but they aim to keep their customer pleasure by offering discount and giving vouchers by storing their products in large warehouses. Amazon is a biggest worldwide business which provides products to their customers; by providing latest products to their customers they could make great money. Selling latest item on their site would get more customer, by getting more customers this will help Amazon business to gain better shopping place for customers.
In conclusion, Kudler Fine Foods needs an effective management team to operate successfully at their best ability by allowing them to implement their knowledge and skills to improve productivity around the business. Improving the website will definately allow the business to improve service therefore will atract more clients to increase revenue. Fixing this issue will improve many other areas of the business and become a better
1. Local area – Wandsworth 2. 4 Business Organisations in the area * Primark * Sainsbury’s * Starbucks * Roehampton club 3. Organization * Primark Sector - Tertiary trade Ownership – Public limited Company Business activity – Primark is a fashionable shop and its sells clothes for man and woman Competitors – new look, H&M Success * Importance of having a strong vision and seeing it through – they sells verity of cloths and accessories. They want to be a best fashion shop in the world, and for this they need to be come with new ideas.
Providing this service will lead the company to differentiate themselves among their competitors. Moreover, it will maintain a strong cash flow by selling high volume of units to the contractors. However, the service provided by the contractors must fulfill customer satisfaction. Therefore, Home Depot should also provide information to the contractors about the products and their installations. These key points will build and maintain economies of scale.
2. What do you suppose are the factors that helped Gap to at one point rise to the first in sales in the fashion industry? There are many reasons that helped Gap rise to the first in sales in the fashion industry at a time when fashion was using the conventional methods. For years, Gap sold of its inventory in stores, keeping minimal inventories in storage. Also the designers of Gap clothing were spot on with the design tastes of their customers.
They can not only learn how to develop a totally new customized delivery system but also consolidate a good business relationship with HomeHelp which is a big customer. The major business proposition for HomeHelp is HomeHelp can create an innovative logistics application by allying with Woodmere in order to realize the goal of lower costs and less inventory. It is win-win game if the two companies join together to reduce overall channel
The only counter-part of this aspect would be the fact that customers have to take time mounting the furniture, which Ikea considers being a source of fun and a social activity. The end products of IKEA are high quality furniture and in-house products, you have to assemble these yourself as is mentioned before which reduces the costs of these high quality products and therefore the price. End products of Ikea are mostly high quality furniture and in-house products adapted to all. Offering design at low-cost is Ikea’s main objective, and this is the result of adding each core competencies together. Everything is linked in a way that if one of the core competencies turns out not to be one anymore, the whole concept collapses getting Ikea in a dangerous situation.
IKEA has been diversifying for a long time in terms of both product variety and geographical expansion. During IKEA’s early years in 1995, the company decided to start designing its own furniture due to competitors in Sweden. Because of this condition, IKEA turned to Polish manufacturers and they were able to deliver the same quality of product with smaller price. In 1997, IKEA embarked on a brand new concept which is bringing the design to children. To create a family experience for customers, IKEA consulted with a child psychologist in order