Ikea Case

I. FACTS AND FIGURES

IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded. Today it is the world's largest furniture retailer; its majority of IKEA's furniture is flat-pack, ready to be assembled by the consumer.

One of IKEA's objectives is to create an experience for the customers where they make it easy as possible for them to buy from IKEA and enjoy the products.

Low prices are one of the cornerstones of the IKEA concept and help to make customers want to buy from IKEA. This low price strategy is coupled with a wide range of well designed, functional products.

IKEA stores are large to carry the wide range of products that customers can transport home that day. IKEA wants customers to be comfortable and take their time exploring all the different options of furnishings. This is created by IKEA setting up realistic settings with the different products. This makes the customers involved in the shopping experience where they choose, collect, create their room, transport, and then assemble the merchandise.

IKEA uses SWOT analysis to help it reach its objectives. This is a strategic planning tool. It helps the business to focus on key issues.

IKEA's strengths is the nature of the products which is the self-assembly, it helps reduce costs partly because it removes some of the labor cost from the manufacturing process. This makes the goods can be shipped and store much easier.

However the strengths of IKEA are also their major weakness. Customers find difficulties in reading the assembly instructions thus it is very easy to make mistake. It is also easy to mistakenly pick as other box (i.e. three-drawer version instead of the four-drawer.).

This is a particular problem for IKEA because it happens where it has a little control for the company but is actually the major part of the experience for the customers. Therefore IKEA has taken an action to make possible for them to control over the customer's experience.

IKEA make use of "mystery shoppers" to test the process and the assessment of the staffs.

Secondly, IKEA has a high number of staff to assist solely the customers in finding the appropriate item.

These staff is trained in other for them to solve any customer problem immediately. They are also given discretion to provide solutions to the problems and complaints.

Thirdly, IKEA goes to considerable trouble to ensure that signs, instruction leaflets, and assembly process are as smooth and user-friendly as possible.

II. STATEMENT OF THE PROBLEM

The SWOT analysis helps identifies the problem of which IKEA has.

IKEA's action being done has taken course to their objectives.

IKEA first action is to make use of the "mystery shoppers", has greatly help to improve and monitor the process and assessment of customer service provided by their staffs.

Second, the high number of staff and the empowered authority to co-workers could help in dealing the costumers problems and complaints whenever the customers shop at IKEA.

This actions helps the customer's experience improve, making very convenient for them to shop at IKEA where it only needs minimal approach to staff and they have their problems and complaints deal immediately with the help of the employees.

Third action is to make ensure the signs, instructions leaflets and assembly processes are as smooth and user-friendly as possible.

IKEA has a big control over the part where it has small involvement of the customer's experience of the product, where customers make purchase at the store.

The assembly and use of the furniture is the major part experience for the customers, but this happens outside IKEA's control.

The self-assembly nature of the products needs the involvement of person to complete and be able to use the product. However, customers find hard to read the instructions so it is easy to make a mistake when they assemble the item. This makes as one of the particular problem that IKEA needs to find solution.

The self-assembly items also makes no difference to the packaging to a similar product which makes easy to confuse as other item (i.e. three-drawer version instead of the four-drawer).

The customers realize only when they have taken look of the item after they made purchase and arrive at their place. This will makes the customers get frustrated on getting a wrong product and would result into raising a number of customer's complaints.

With SWOT analysis it identifies the problems where the STRENGTHS of IKEA is also their major WEAKNESSES with only a small control over the major part experience of the customer's experience.

Therefore this is the problem that found based on the analysis:

The self-assembly nature of the product greatly affected the customer's