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IKEA standardized the product and operations strategy and hence minimized costs and maximized profits. The corporate mantra is “Low price with meaning”. The goal is to make things less expensive with out ever making customers fell cheap. They offer nearly the same products in its stores all over the world; they can order high volumes and get cheap prices. The company targets the customer who is looking for value and is willing to do a little bit of work serving them, transporting the items home. The following SWOT analysis summarizes the current situation.
|Strengths |Weakness |
|Great quality products at entry level price |Standardized products offer little customization |
|High economies of scale with great |and does not cater to local customer needs...
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