The objective of IKEA is to supply exclusive and reliable flat-pack Swedish designed furniture at bargain prices. (Reynolds, 1988).
When the name IKEA is recognized or mentioned, people think of how they have captures the market with their innovative ways. They have always been innovators during their marketing campaigns in the community. The product innovation was based on the simplicity of the design and the concept easy assembling of the furniture and its high quality. Their strong belief in low-cost quality furniture helped to lower prices throughout the market. This strategy gave them the competitive advantage. IKEA has lead the furniture industry with low pricing which does not appeal to their competitors. This is where they make such a difference in the furniture industry. .
IKEA is committed to having a good relationship with their suppliers, and customers. With this in mind, they are able to purchase good quality, economically produced designs that are bought in bulk to keep cost down. By making their furniture flat packaged they are able to cut down their transportation and assembly expenses. (Chopra, 2009).
Sustainability is the key to IKEA's growth. Their goal is to create a better everyday life for as many people as possible while using their resources wisely, inspiring and enabling people to live more sustainably, and supporting human rights, including children's. (IKEA.com) they believe that by creating affordable products that will cost less and help their customers use less water, energy and less waste. With this train of thought, they will be able to help consumers become independent users of energy and their resources. Another reason for growth, is their commitment to improve life for their employees, employees of their supplies, and the worldwide community as a whole. .
In FY12, we agreed on our new sustainability strategy – we call it "People & Planet Positive" – which sets new goals for us to meet by 2020.
