TODAY’S SESSION
CASE STUDY IKEA: COMPETITVE ADVANTAGE, SALES STRATEGY & SALES (ACCOUNT) RELATIONSIP MANAGEMENT
INSPIRING READINGS
The IKEA vision
“To create a better everyday life for the many people.” This vision goes beyond home furnishing. We want to have a positive impact on the world – from the communities where we source our raw materials to the way our products help our customers live a more sustainable life at home.
By sharing what we do, and speaking up for what we believe in, we can be part of positive change in society.
IKEA co.
Distinguished products
Affordable prices
Exceeding expectations
The following points constitute integral elements of IKEA business strategy.
Offering the lowest prices. Cost effectiveness is one of the solid bases of IKEA competitive advantage.
2. Increasing variety of products. Great range of products also belongs to the list of IKEA competitive advantages.
3. International market expansion strategy. The home improvement and furnishing chain has traditionally engaged in new market development in an aggressive manner.
4. Benefiting from strategic alliances. The global furniture retailer benefits from strategic alliances to a maximum extent and the formation of strategic alliances is placed at the core of IKEA business strategy. The list of the most successful collaborations include partnership with Apple to explore the possibilities of Augmented Realityas a tool for home-furnishing, partnership with LEGO for new product development and partnership with Adidas in knowledge sharing about customer behaviour.
Dudovskiy 2019
IKEA VALUE PROPOSITION
CUSTOMERS/ STRONG BRAND
PRICING
SUSTAINABILITY
PRODUCT PORTFOLIO
SERVICE EXPERIENCE
GOOD DESIGN / NORDIC DESIGN
COMPLETE & AFFORDABLE PRODUCT PORTFOLIO.
PRODUCTS
STORES / FACILITIES
CLICK & COLLECT
PLANNING STORES / SMALL STORES
APP & TECHNOLOGY
IN-STORE EXPERIENCES
PERSONNEL
CUSTOMER CENTRICITY
CUSTOMER JOURNEY
IKEA FOOD (RESTAURANT, SWEDISH FOOD MARKET & BISTRO)
CUSTOMER TRANSACTION AND SOCIAL INTERACTIONS
CRM BASED ON THE VALUE PROPOSITION
SOCIAL INTERACTION / SOCIAL ACTIVITIES
INFORMATION EASY TO FIND (IN-STORE & ONLINE)
HOME DELIVERY
COLLECTION
HIRE A VAN
FURNITURE REUSAGE
FLATPACK ASSEMBLY
PLANNING
INSTALLATIONS
ALTERATION
FINANCES
ROOF RACKS
RECYCLING
IKEA BAGS
CUSTOMER TRANSACTION AND SOCIAL INTERACTIONS
CRM BASED ON THE VALUE PROPOSITION
SOCIAL INTERACTION / SOCIAL ACTIVITIES
INFORMATION EASY TO FIND (IN-STORE & ONLINE)
IKEA Småland
Baby care rooms and change tables in restrooms
Strollers
Free baby food and baby food warming stations in the restaurant
A special children’s menu in the restaurant
Unsupervised play areas for children to enjoy throughout the store
CUSTOMER CENTRICITY: IKEA AND THE CUSTOMER JOURNEY MAP
IKEA identification of the main pain-points when delivering a proper customer service.
“Where some organisations are now mapping out their customer journeys to identify bottlenecks, and make the path to purchase and beyond as easy as possible, for IKEA the idea is that what friction the Swedish retail creates plays a part in producing memorable and rewarding experiences – and customer loyalty. So, as IKEA ably demonstrates, for some retailers it is by successfully identifying the particular branded pleasure and acceptable pain you offer that is part of the brand and how it is experienced for customers.”
Annesley 2018
IKEA AND THE MACRO-TRENDS: IKEA SUSTAINABILITY STRATEGY:
Healthy & Sustainable living.
Circular & Climate positive
Fair & Equal
Giving IKEA furniture a second life
Creating a global clean energy community
Introducing more good food that’s good for the planet
Aiming to be 100% powered by renewable energy across the entire IKEA value chain
Offering zero-emission home deliveries, everywhere
Supporting refugees around the world
Working with social entrepreneurs
Promoting gender balance and equal pay
IKEA Co.
TEMPTING
RECOMMENDED RESOURCES AND RESOURCES USED
BLOGS & WEBSITES
“CASE STUDY IKEA: friction and the customer experience.” Christian Annesley, 2018, Internet retailer.
“IKEA Business Strategy and Competitive Advantage: Capitalising on IKEA Concept”. John Dudovskiy. Business Research Methodology. 2019
“IKEA Marketing Strategy: 7 Tactics and Takeaways (Infographic)”. Brafton: Fuel your brand. Michael O’Neill.2021.
IKEA Website
IKEA sustainability Strategy
www.euruni.edu