IKEA is a Swedish multinational company that manufactures and sells home furnishings and furniture at low prices. It dominates the market in 32 countries due to its focus on good quality products at low prices. IKEA develops products through an intensive process involving designers, manufacturers, and suppliers to ensure low costs while maintaining modern design, function, and environmental sustainability. It transports products efficiently and sells them unassembled to keep prices low, asking customers to assemble furniture themselves. This allows IKEA to fulfill its mantra of "low prices with meaning" and provide better living solutions for many people.

1. By
Asheem Kumar Palo
Centurion University, INDIA

2. Introduction to
Ingvar Kamprad Elmtaryd Agunnaryd (IKEA)
 IKEA, founded in 1943, is a Swedish MNC that manufactures and sales
house wares and office wares & goods.
 It was In the recent year it has dominated markets in 32 countries and the
competitive market due to the factor “good quality at low price.
 IKEA's corporate mantra is “Low price with meaning.”

3. What put IKEA’s product at the top?
1. Low price tag
2. Function
3. Modern design
4. Environmental consideration
5. Manufacturing under acceptable
working condition

4. IKEA New Product Development
Price picking :
“The low price begins at the drawing board.”
The IKEA’s product design team consists of designers ,product
developers, purchasers etc. should get together to contribute with their
special knowledge about :
1. What willl be the design?
2. Material to be used?
3. Where, when and whom to supply?

5. Choosing a manufacturer:-
Working with many factories IKEA led to develop a long term relationship
which help both parties to buildup a huge fund of knowledge about demand
and expectation which helps to develop a product in close relationship with
the supplier and make product cost effective and saves time.

6. Designing the product:-
IKEA uses internal competition to find a designer and select a design of
production.
The designer should begin the designing process by writing brief explanation
about;
1. Product’s price
2. Product’s function
3. Material to be used
4. The fabricator’s capabilities
Then it is to be send to IKEA’s staff designers and freelancers and need to be
updated until the targeted product sample is not produced.

7. Transportation of a product
 IKEA strives to deliver the right number of goods to the right store at
right time.
 The goods are transported from Romania by rail ,road and sea to the
IKEA distribution center.
 Many of the products are bulky so they decided to shipped assembled
which reduces the cost effectively. IKEA employees ‘mantra is :
“We don’t want to pay to ship air.”

8. Selling The Products
 IKEA sells a lot of expensive furniture and in a traditional store this is
relatively easy.
 To keep price low, IKEA sells furniture and other products without sales
people or conspicuous price reductions.
 The transportation packing are collected for recycling.
 They put the price tags on the goods which provide interior solution and
help customer to select items.
 They provide assembling guideline with the product so that customer can
be easily able to assembled themself at home.

9. Strengths
 A low price tag
 Modern designs for more environment friendly products
(e.g., light colour of mugs)
 Manufacturing under acceptable working conditions
 The product of IKEA are made in close cooperation with suppliers.
 Introduction of code of conduct governing working conditions and
environmental awareness including health and safety.
 It has efficient transport and storage of products.

10.  Some times to keep low price the company asks the customer to assemble their
furniture them selves.
 Sketching for a new product & fixation of price take more time to implement.
 Salesman of this companies are less as compare to other companies.
 Many of the IKEA ’s products are bulky.
 For saving space simple products are redesigned repeatedly which use a lot of money
and time.
 Making things flat is IKEA ’s obsession.
Weaknesses

11. Opportunities:-
 Due to low price and good quality it can conquer the world wide market.
 Due to the flexibility in design it can enter into the millions of home and interior
places.
Threats :-
 Shifting more of its buying from Europe to far east ,shipping time and costs have
become an more critical concern.
 Transportation leads to an great impact on environment.
 Problem of saving raw material and ultimately the environment.
 Economic factors the recession slows down consumer spending and disposable
income reduces.

12. IKEA’s corporate mantra “ low price with meaning” to satisfy this IKEA works
nonstop to reduce cost to create a better everyday life for many people.
IKEA products broadcast an ethos for living in the modern world :don’t buy an
ugly pitcher if you can get a stylish one for the same price.
IKEA responds to both internal and external issues in a proactive and dynamic
manner by using its strengths and reducing its weaknesses. In order to
improve performance, it must assess its external and competitive
environment. Through this, IKEA is able to generate the strong growth it needs
to retain a strong identity in the market.
Conclusion