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Business & Marketing
Ikea Case Study Analysis Assignment: Hard System Method (Case Study Sample)
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IKEA CASE STUDY ANALYSIS: HARD SYSTEM METHOD
Description and Analysis of Situation
IKEA was founded by Ingvar Kamprad as a means for people of lower or middle status to be able to afford nice homes without straining their budgets. Having lived in a farming community, Kamprad has been exposed to countless scenarios where people struggled to live their daily life and acquiring comfortable and functional furniture for their homes is simply for the rich. With these lessons in mind, Kamprad founded IKEA.
Objectives and Constraints
The main objective IKEA aims to embody is to provide high-quality furniture and other home materials with prices the majority can afford. Today, this goal is reflected in IKEA's corporate vision: “A community of professionals, constantly developing the skills necessary to create a better everyday life at home for the many people.”
This vision led the company to carefully design and create pieces that are catered to the homes of “common” people. People who belong to the middle class to the lower class of living. People who mostly live in small and compact homes. People who cannot afford expensive materials. To meet this constraint in the production of the furniture, designers must meet up with material manufacturers that can provide them with the right material but also give reasonable and affordable prices.
IKEA must also make sure that the materials are environmentally friendly to pass national laws. This makes it more difficult for the company and the designers must make sure that the materials to be used must not be consumed faster than they can be replaced. They cannot also use unnatural materials to preserve nature. They must also make sure to utilize as much of the materials given to avoid waste while still abiding by the customer requirements. This is how IKEA came to be well-known for their brilliant space-saving and multifunctional designs.
Aside from their furniture designs, IKEA is also known for their flat-package system. This system was developed to make it easier for the customer to carry their orders or for easier delivery. In this method, the furniture is sold in parts and customers will build their furniture themselves. This saves customers money from extra costs of delivery which is unlike other companies that sell furniture pre-built. This makes delivery a hassle and more expensive since the customer cannot carry the furniture themselves, unless they have their own car, and will have to pay for couriers to deliver the items for them with extra charge. The furniture is also easy to build that customers can do it themselves with little difficulty.
Routes to Objectives
To achieve the goal of providing affordable housing furniture, IKEA revolved all efforts and designs on common sense and customer comfort, physically and financially. The materials and production units are sourced from manufacturers that are not part of the elite or mainstream establishments such as clothing factories for upholstery, etc. IKEA stores are also strategically built on the outskirts of town to avoid expensive rents and taxes as was the nor...
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