Essays on IKEA: Strategic Development Plans Coursework

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The paper "IKEA: Strategic Development Plans" is an outstanding example of an essay on marketing. According to Kippenberger, (1997 pp. 33-34), IKEA is one of the world's biggest retailers in furniture and other household products. It is a Swedish based international company with over 300 retail stores worldwide. Since its foundation in 1943 by the Swedish Ingvar Kamprad, the company has operations in 38 countries most of its activities concentrated in Europe, the USA, Canada Asia, and Australia. One of the peculiar attributes of IKEA is that it is one of the few known organizations with distribution outlets in both Israel and other Middle Eastern countries.

Edvardsson and Edquist (2002 pp155) suggest that the business name IKEA is an abbreviation that stands for the name initials of the founder and his place where he grew up. IKEA stands for Ingvar Kamprad (names of the founder), Elmtaryd, Agunnaryd, where he grew up in South Sweden). IKEA strategic Development plans since 2000 and their results The organization's vision is “ to create a better everyday life for the many people” by offering a wide range of well designed, functional home furnishing products at so low prices that as many people as possible will be able to afford them (IKEA, 2004 pp 2).

With over 12,000 unique products, IKEA has been famed for the affordability and customizability if its furniture which enables the consumer to assemble for themselves. According to the founder, IKEA’ s corporate culture is strongly built on this philosophy from the design teams to the customer. The organization's corporate themes and philosophy are concerned at remaining socially responsible and environmentally friendly in all its operations and those of its partners (Moller, 2005 pp 28). The organization’ s common market positioning slogan call for customers and stakeholders to partner in better living with an acclaimed idea that ‘ together they save money. ’ The strength and the success of the IKEA brand as an international brand is a result of effective strategies whose concept has been founded on a relationship with its customers.

The company uses inexpensive materials in a creative way to minimize the costs of production and contribution. In this way, the customers have been able to enjoy the low prices of IKEA products.

IKEA’ s main marketing tool is its catalog, which is printed in 17 different editions in over 200,000 copies and distributed freely in all its distribution centers. Over the past years since establishment, IKEA has been keen to pursue strategies for growth and quality improvement in the supply chain. In the 5-year strategic plan for 2000-2005, the organization's focus was mainly on two activities. Firstly, IKEA operations were to be merged to follow the requirements of its code of conduct, which is, “ the IKEA Way on purchasing Furnishing Products commonly” shortened as the ‘ IWAY’ . 

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