IKEA & LEGO Management Essay Research Paper Coursework

IKEA vs. LEGO
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Compare and contrast these two organizations for the following:
1 Strategic competitive priorities
LEGO sells play systems involving plastic bricks packed into varying sets with different themes at hand. However, the most important strategic priority that LEGO keeps to maintain itself within the roster of competitive markets in the world is by continuously targeting the creative imagination of the children as consumers of their products. Basing on its company mission, LEGO possesses an unlimited possibility with its system of play, which can enhance the creative minds of the final users. On the other hand, IKEA caters more to adult needs. The products of IKEA include furniture and possibly toys that adults can use for play. However, Ikea highlights low price, high quality, flexibility, and a focused target market as the group’s strategies competitive priorities. According to the IKEA Group, they aim to produce high-quality products that will help every home at a reasonably low price. One strategic advantage that IKEA Group has over other competitors is the reduction in the expenses related to transportation and storage. It is because the company produces goods that can be “flat-packed” which makes delivery and storing more economically space-friendly. LEGO, on the other hand, focuses on the production of products with quality at a reasonably low price. Regardless of these differences, the common denominator between the two organizations is their ability to innovate products continuously. Their improvement strategies as separate companies are leading towards the innovation of new products that can address the changing needs of the target market. An example of this for IKEA is their statement about producing new goods. The company dedicates itself to continuously innovate by having to collaborate with their knowledge of home and the day-to-day experiences of the consumers. LEGO, on the other hand, made its products to be gender flexible among children. These strategies make them remain on the top.
2 Process design and layout
A company’s process design and layout is a concept the company follows to ensure that things will go smoothly as planned. IKEA and LEGO have similarities and differences. Before they start with mass production, they will first create prototypes and these will be tested to observe the specifications. If prototypes passed, the materials will enter production. However, what could be different between them is that LEGO uses more intricate mathematical calculations that will support the greatness in precision in their items. The second point involves the utilization of all their equipment to produce high-volumes yet lower-variety products. But to differentiate them based on this, IKEA uses Mass processes to produce high volumes of products but with low variety, while LEGO uses Continuous processes to produce higher volumes of produces but with lower variety. LEGO is more on continuous because it claims to produce products twenty-four hours a day, seven days a week.
The layout refers to how operations within the company are arranged and positioned concerning their relationship with ...