New developments that favour the company as well as the consumer and the

New developments that favour the company as well as

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New developments that favour the company, as well as the consumer and the environment at large, have been implemented by these companies. IKEA for instance, in April 2019, the company announced the furniture rental idea that would have the rent out furniture to its customers. Within these items are the coffee tables. The products were commonly referred to as cheap and disposable. Hence, to do away with the scrapping of these materials after years of use, the company implements this strategy (Baraldi, 2018). Also, the company has other strategies where they plan to be more affordable and more convenient for their consumers. The renting out of these products will increase the number of times a product will be used before going through the recycling process. This also impacts the environment positively. WGSN Insider reports on the generational rent in which Ikea wants to try. The company aims at reaching the young generation with this strategy. This strategy will act as a sustainable approach which
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RUNNING HEAD: TERM PAPER 10 will enable customers to take back items that they want to do away with to the firm. Returning them will have them donated to charity (“Generation rent: Ikea to trial furniture subscriptions.” 2019). The materials used by IKEA to manufacture these products are also environmentally friendly and meet the consumers’ needs at the same time. Some of the mentioned environmental performances the company has tried to implement include the elimination of acid-curing lacquers and the introduction of air-inflatable furniture products which reduce the raw material used from framing and stuffing as well as the transport weight (“Generation rent: Ikea to trial furniture subscriptions.” 2019). In conclusion, it is evident that both companies, despite producing a similar product which is the coffee table, they differ in some areas such as pricing and quality as well as their target markets.
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RUNNING HEAD: TERM PAPER 11 References Generation rent: Ikea to trial furniture subscriptions. (2019). Retrieved 25 November 2019, from Li, H., Guo, H., Skibniewski, M. J., & Skitmore, M. (2018). Using the IKEA model and virtual prototyping technology to improve construction process management. Construction Management and Economics, 26(9), 991-1000. IKEA.com - International homepage. (2019). Retrieved 25 November 2019, from The official Hermès online store | Hermes UK. (2019). Retrieved 25 November 2019, from STOCKHOLM Coffee table, w. (2019). STOCKHOLM Coffee table - IKEA. Retrieved 25 November 2019, from Desks, T., tables, C., tables, C., & table, T. (2019). TRULSTORP Coffee table - black-brown - IKEA. Retrieved 25 November 2019, from - coffee-table-black-brown-00400277/ Baxter, M., & Landry, A. (2016). IKEA: product, pricing, and pass-through. Federal Reserve Bank of Dallas Working Paper , 132 . Baraldi, E. (2018). Strategy in industrial networks: experiences from IKEA. California management review , 50 (4), 99-126.
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RUNNING HEAD: TERM PAPER 12
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  • Fall '18
  • DR.KANGANGI

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