What are ikea's competitive priorities

Erika Hamel

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I think that was a bad choice by the employee to send out a tweet telling the world he was unhappy with his Christmas gift from his employer. With that being said, he should not have been fired over this. The employer should have talked with the employee, and maybe even given him some disciplinary consequences. The employer could have given the employee a written warning, maybe even suspended him without pay, but he shouldn't have been fired. The employee definitely displayed a level of bad behavior. That was a very immature thing to tweet, and basically made fun of his Christmas gift. The employer didn't even have to give their employees any gifts, so he should have been appreciative. If he was not satisfied with his gift, he should have kept that to himself. Now both parities are paying the price. The employee is jobless, and the employer is forced to pay severance for not handling the situation correctly.

REPLY2

Elaina Medvedik

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Social media has a way of altering the way we would normally respond to a situation. The employee needs to realize that, while he had strong opinions and concerns about his company, it is still a company that is supporting him. If the choices the company made really bothered him so much, he always has the option to leave. Now I do believe there should always be a way to communicate your opinions to your boss, but that requires a greater level of courage and professionalism.

However, instead of simply firing the employee without pay, the employer should ask why his employee felt so strongly, and why he was upset enough to post something so damning to the company. Both parties were in the wrong but there are very easy guides that can be put in place moving forward - a suggestion box for employees perhaps.

REPLY 3

Camila Arenas Van-Battenburg

1. What are IKEA’s competitive priorities?

IKEA’s competitive priorities are to sell good quality products are a low price. This combination is likely to have a competitive advantage among its competitors.

2. Describe IKEA’s process for developing a new product.

IKEA’s process for developing a new product starts by pricing an item and picking a price. Since IKEA’s main goal is to sell good quality products at a low price, the price drives all the other decisions in the product development process. Once price has been defined, they choose a manufacturer that meets their goals and standards. The next step is to design the product and then define the logistics. The logistics and shipping costs can drive a change in design in order to keep the logistics cost low.

3. What are additional features of the IKEA concept (beyond its design process) that contribute to creating exceptional value for the customer?

Additional features of the IKEA concept beyond its design that contribute to creating exceptional value for the customers are the price for the customer and the accessibility of their products. IKEA’s method of having a self-serve service and the packaging designs of their products are made in a way that anyone can go to a store and purchase a piece of furniture without having to wait weeks to get it and there are no extra charges for delivery or assembly. The combination of price and accessibility create an exceptional value for the customer.

4. What would be important criteria for selecting a site for an IKEA store?

Important criteria for selecting a site for an IKEA store is the size of the warehouse. The space needs to accommodate the showroom and also the self-serve warehouse and a large parking lot for all their customers. Another criteria is the location, it needs to be easily accessible for material delivery and to avoid additional shipping costs.

REPLY4

Jacob Seely -

1. IKEA's competitive advantage is low prices with quality items. Also having a vast inventory of different items. They are able to provide good quality items while also being affordable.

2. First it starts with the product developers. They are told how much it will cost in stores and have to develop a product that can fit into that price range. They think about how much the color would cost all the way to how much shipping would cost. They use internal designers to get many designs of the product. They refine the ones that look good until they settle on one. The whole time they keep in mind keeping costs down.

3. IKEA has perfected making things flat. By making most items flat and putting them in boxes they are able to fit more per pallet. BY doing this they can ship more per truck load. This is able to help save them money which allows them to price things lower. They also have the self service are which customers pick up there own products to take home and build, by building your own furniture at your house, IKEA can set the price lower.

4. Choosing an area that is well populated would be important for selecting an IKEA site. You want to place it where it is easy to get to and where people are interested in going. Also, you need to find a large lot because IKEA's are huge building. You need a lot of space for the building and parking lot.