They also have a mission for sustainability and are

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their products to meet those demands. IKEA offers design services that integrate IKEA furnitureinto someone’s living space and is easily accessible to its customers, which is another nice6 | P a g e
selling feature of IKEA. Having childcare services and the restaurant is an opportunity to beentertained and enjoy the in-store IKEA shopping experience. These factors contribute to IKEA’sdifferentiation strategy so that they can increase their market share. The key for IKEA to achievesuccess in its prospective market is ability to understand how to meet the consumer demand.IKEA ProductsIKEA developed a ‘Life at Home Report;’ which is an activity to assist in them to understand the living situations of people around the world in order to effectively develop new furniture by transcending cultural boundaries. Their approach to design their products is called “Democratic Design”. The five pillars of Democratic Design are the following[Mar14]:– Sustainability: Their products are environment friendly and can be recycled to be used in manufacturing other products. – Quality: IKEA focuses on the quality of its products and ensures that they last for a reasonable period.– Physicality: This pillar focuses on the strength of the furniture and its ability to maintain its form and shape.– Functionality: IKEA products are designed to work as they are intended to and the they should make their customers life easier by meeting their everyday needs and requirements.– Affordability: IKEA focuses on pricing their products reasonably in order to increase its marketshare and attract more customers.IKEA is known primarily for selling self-assembly furniture, which is designed to be assembled by the consumer. IKEA’s strategy behind selling this type of furniture is to permit them to reducecosts and use of packaging by not shipping the furniture at its full size. IKEA’s furniture is characterized by being flexible, adaptable, and scalable to both smaller homes and dwellings as well as large houses. In addition, IKEA expanded its product base to include flat-pack houses to cut prices involved in first-time home purchasing [Lau16]. In addition, a minor branch of IKEA services is food services as many of its retail stores have restaurants attached to them. 7 | P a g e
IKEA’s Competitive Advantage Competitive advantage is the organization’s ability to perform the required activities, either at lower costs than its rivals are, or in differentiated ways that create value for the consumer and allow the organization to command a premium price[Hax96]. Accordingly, IKEA’s competitive advantages are as follows:1.Cost leadership: IKEA implemented low cost and quality factors that attract costumers and ensures their loyalty to the brand. This is achieved by publishing their products pricesin a catalogue that is guaranteed for one year. Moreover, IKEA implemented price control

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