IKEA products are known for its modern-day and practical design. The furniture is designed to be easily assembled by the consumer rather than being sold pre-assembled. This method allows IKEA to reduce costs because it is cheaper to ship an item that is unassembled and takes up less space. The flat-pack distribution method also allows a consumer to easily transport the product from the store to a customer's home for assembly.
IKEA's approach to manufacturing and designing their products is what makes their products unique. The company uses particle board which is engineered wood particles such as wood chips that is pressed together to form a large piece of medium-density hardboard. Particle board is cheaper and lighter than regular wood which cuts costs even more on manufacturing and shipping.
Product Life CycleIKEA is currently experiencing the introduction stage of the product life cycle. The products are still in the process of being introduced in the market in the United States. With only 29 IKEA stores in the United States, Germany holds the biggest market with 41 stores. It is predicted that IKEA will ease into the growth product life cycle which will steadily rise little by little until it reaches the maturity stage. The IKEA product life cycle will ultimately decline gradually due to competition.
Price StrategyIKEA differs from any other furniture companies in that IKEA has a very unique strategy of pricing their products. Most manufacturers design a product and then try to price the product so that it will sell and profit but at IKEA, the price comes first. The price is set by the product developer who first identifies an existing problem that can be solved by IKEA's product. For example, if the product developer notices that there is a...