used to produce these tables are some of the factors that determine the quality

Used to produce these tables are some of the factors

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used to produce these tables are some of the factors that determine the quality and dictate the price of the product. IKEA pricing and quality. For IKEA, they are seen to produce quality and full range coffee tables which are affordable to the consumer and meet the needs as required. IKEA uses a variety of materials which may not be as expensive but incorporate various measures in the manufacturing process to ensure the result meets perfection (Baxter & Landry, 2016). This perfection is in terms of physical appearance and the functionality of the table. From the various examples shown in the diagrams above, the tables are appealing to the eye and very affordable. An example of a coffee table produced by IKEA is the HEMNES coffee table which costs $119 and is of the size 46.5”l x 29.5”w x 18”h. A sample is shown below. (“IKEA.com - International homepage.” 2019) Hermes pricing and quality. Hermes is known to produce high-quality coffee tables which are priced highly. Most of their coffee tables and other products are designers and built only on limited editions. Their pricing strategy does not tend to make discounts on its luxury products for their clients. The
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RUNNING HEAD: TERM PAPER 8 material type, as well as the premium costs by the competitor, are the main factors that determine the price of the coffee tables produced by the company. From the variety of designs created by Hermes, a coffee table ranges from the amount of $19,400 (“The official Hermès online store | Hermes UK.” 2019). An example of a coffee table produced by Hermes is the U long coffee table which is among the most expensive coffee tables selling at $ 38,400. (“The official Hermès online store | Hermes UK.” 2019) Applicable government rulings and laws With operations from each existing in different countries, there are various rules and requirements set up by each of those countries for these companies to follow. These rules and laws can be in the form of VAT rates, product safety, and export/import laws, among others. These laws can, however, differ from each country of operation. Technology factors Recent technology developments are evident in both companies’ production of coffee tables. The different designs from both companies as well as the modes of manufacturing the product have evolved over the years. These developments impact product offering. Also, the technology implemented in the selling of these items has improved in different ways. For instance, online stores have become more stable and reliable to the consumer. The client can
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RUNNING HEAD: TERM PAPER 9 order and purchase an item without going to the store physically (Li et al., 2018). An example of the IKEA online platform for customer purchase is shown in the diagram below. (“IKEA.com - International homepage.” 2019) New product developments.
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  • Fall '18
  • DR.KANGANGI

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