Bargaining Power of IKEA Customers
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Poder de negociación de los clientes
IKEA is strong, as the competition is intense and customers have a wide variety.
of options that furniture stores offer worldwide, as well as the producers
furniture places. However, the company serves the consumer segment
young people who need furniture with style at a low price. Unlike furniture stores
traditional, IKEA focuses on consumers who are willing to sacrifice service
customized by cost. The stores apply a self-service model, in which the
furniture is displayed in a structured manner. For this, extensive areas are required.
exhibition, which is why the stores are located in suburbs or areas of relatively low cost.
rental. The service hours are extended, allowing for assistance to
who have limited hours to do their shopping.
Colombian customers are becoming increasingly important as they represent a new
concept in this country and they are the ones who will decide the positioning of the new brand:
Improvement of sales channels: investment in e-commerce and social media.
There will be a network of call center, sales representatives.
specialized support for the customer's decision and purchase.
Provide services that complement the original product to deliver
customer personalization.
Increase product quality while keeping prices low.
Purchase service without leaving the vehicle
As we have said before, there are barriers to products, both in design
como en dimensiones y del concepto de IKEA en sí mismo. Nuestra idea de producto
will focus on: comfort, ergonomics, functionality, price, and quality.
2. bargaining power of suppliers (eve)
The multinational has a network of more than 1,000 product suppliers.
finished, while the figure rises to more than 50,000 if we also take into account
those of services, transportation, or intermediate products (suppliers of their suppliers).
Those 50,000 suppliers who, in some cases, see the company as their only one.
client: 'IKEA is very demanding, but no one offers those purchase volumes,' their
partners.
Providers are responsible for between 85% and 90% of the products that are
They are sold at Ikea. The rest is produced in the 41 factories that the company has around the world.
Ikea Industry, what is the name of the subsidiary responsible for its own production, employs 19,000
people and only manufactures what it can add value to. An example is the
Swedish factory in Hultsfred, where 2.6 million PAX wardrobes are made each year with
only 150 employees.
This same thing will be sought in Colombia:
Increase supplier portfolio.
Suppliers that handle exclusivity with the company in order to successfully launch
unique offers through production prices that are better than the
competition.
Own factory: number of operators in the country responsible for customization
and limited editions of products.
The company pursues the strategy of forming long-term strategic relationships with its
suppliers. Therefore, starting in the year 2000, IKEA created a code of conduct for
suppliers, called IWAY, which specifies the conduct requirements that must be met by the
provider and which must also communicate to its employees and subcontractors,
guidelines that will be followed in the country.
3. Threats from competitors (Pedro)
offer the same products at a lower price
Small businesses that offer custom and made-to-measure designs.
Offer products with more ergonomic designs
Products with the best quality raw materials
4. substitute products (Lizeth)
Substitute products are those goods that can be used in place of others for the
same end.
This is the one that directly competes with the product and is presented as a substitute.
because it fulfills the same function in the market and satisfies the same need in the
consumer.
- Directs:
Desks or furniture made by the major competitors
Small and medium-sized furniture manufacturing companies
Companies whose objective is the rental of furniture, shelving, desks, etc.
- Indirect
Furniture such as dining sets, coffee tables, sofas
5. rivalry among competitors (edward)
TUGO
CURE
LIVE HOUSE
BRUNATI
THE SWISS FURNITURE
EASY
ALAMEDA
