Identify the company and the industry the company belongsadmin / January 23, 2019
Identify the company and the industry the company belongs:
IKEA is an international company that sells household furniture, constructed under wood-based furniture industry, which is a growing industry in the developed countries around the world, with strong competition between rivals. Ingvar Kamprad, when he was only 17 years old he founded IKEA since 1943, and today IKEA has a total of 345 stores in 42 different countries. Selling household goods like kitchens, living rooms, bedrooms, and office furniture.
Småland, the land where Ingvar grew up, and the metropolis where IKEA was established in Sweden. The IKEA Concept begin with the innovative idea of providing a variety of home furnishing goods that are affordable to all people and families, which was accomplished by combining function, quality, design and value and always with sustainability as a priority.
Inquire about customers and how they are served
The firm’s targeted market are customers from both genders, aged from 15 and above, customers around the world intend IKEA for furniture shopping.
According to IKEA’s vision “to create a better everyday life to the many people” the firm prioritize their customers. The company and its vision have latterly helped millions of families worldwide over time. IKEA also set up “The Business Plan.” The plan presents the entity’s intention to create optimal quality, valued and affordable goods and services to help their consumers develop and improve their everyday lifestyle.
Customers are served in plenty of ways, such as: delivery, pick up points (shop online and pick up your goods from IKEA stores), Assessors specialist (designing your bedroom, kitchen, and living room with furniture specialist), Finance (pay in cash or via visa card, and get discounts when applying to get IKEA family card), Installation, assembly service, removal and recycling service, and finally Rent a van (driverless van to take your goods by yourself can also be rented in IKEA), in additional, Currently IKEA’s customers service teams are show in the social media where customers around the world can easily submit their inquires, complains and any questions to get helpful respond in few hours.
Find out what make a customer satisfied
IKEA follows various approaches to fulfill customers’ needs, and as all other companies needs to do to retain loyal customers, planning is a must.
Initially and as mentioned previously, the quality of the goods sold and service provided is an essential factor to please your customers and to force them to come back and buy your products again and again. Getting superior quality requires a company to firstly understand customers’ needs and wants in order to construct products as desired by customers, secondly firms must find a unique feature that differentiate their products from other competitors’ products, also developing and improving that features is significant, and that can be achieved for example by doing team brainstorming, planning and analyzing. Thirdly a reasonable price which play a very important role for attracting customers and gaining their loyalty, customers always prefer to purchase goods that have good quality but also a low price, therefore the price obviously have a direct impact on customers’ affordability. Finally, Excellent customer service and as IKEA is doing, utilizing the strength of human resources and their skills to get the best from them, and having good control over their performance will reflect in the quality of the services they are offering to the customers, and by this customers will feel happy and willing to get their help from the customer service team. If all of this is met customers will be satisfied and pleased.
In the IKEA always putting customers in the first place and see what they needs to ought to commit to delighting its customers. So, they make more customer questionnaires with customers of IKEA of furniture and household products. IKEA also intent on helping customers improve their everyday life (the IKEA purpose) but it also wants to improve the lives of “the many people” through quality, affordable, valued service and goods. IKEA’s business plan—an addendum to its purpose—reads as follows: “We shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”
IKEA have developed a complete process to get to know what customer are expecting from them and how much they are satisfied with the product. It is feedback process. This process helps IKEA to improve its services as well as it will become closer to the customers and understand their behavior.
In general, we can see almost customer are satisfied from products and services that IKEA provide it. Also, IKEA have a completive price and high-speed service for customers that attract them to buy more furniture’s. (Peioglou, 2016)
Internal business is a vital part of IKEA’s success. IKEA provide all the requirements of home, offering a variety of household and office products. They selected products carefully for the customers to be able to make their homes more beautiful and comfortable and more attractive. These factors help them to satisfied customers and help them to achieve desired profits and to increase the reputation and sales of the business. The strategic goal of the IKEA that satisfaction customers is very important to grow sustainably. IKEA’s vision is “to create a better everyday life for the many people”
It is business idea which is “to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”
IKEA provides a good quality furniture at affordable price to satisfy customers. The strategy of IKEA be more flexible and be able to introduce new products and services to customer requirements. (Kim, 2014)
In the IKEA, There are strategic process to how category sourcing teams work toward suppliers which are (Define, Measure, Analyze, Improve and Control).
• Project directive • Segmentation • Goals and requirements
• Spend analysis • Gap analysis • Market diagnosis • Project plan
• Positioning • Supplier structure • Value analysis • Strategy development
• Tendering • Contract • Implementation
• Measure and control • Product development • Create leverage
Cost savings in furniture design
IKEA depend to use low manufacturing costs to meet with strict requirements for function, efficient distribution, quality, and impact on the environment. IKEA use 50% of the products from sustainable and recycled products. It encourages customers to be more thinking of environment and protect it.
IKEA use the flat packages of products which is very useful of shipping costs. It helps them to pay lower shipping costs because the pallets are filled to maximum capacity, unlike peers who often ship assembled furniture. Not only flat packages advantage of IKEA’s supply chain, it also helps customers to pick up items easier from the store and take them home in these same space saving boxes.
How customer orders/complaints are processed/delivered:
The customers can buy from shop or buy from website of IKEA. If you shop online, you must put your active email address and a telephone number to contact easily with them. You must give them your location to deliver your products. Also, customer can pay with all major credit and debit cards and IKEA Gift Card. In shop online, the prices of product shown do not include the delivery fee, so it will be added to your total order price. The promotions that are offered in IKEA Shop Online will be sometimes different than promotion in-store.
If customers buy from IKEA shop online, they can choose the date of delivery orders when placing their orders. IKEA can deliver their online order within 14 to 30 days it is depending on their location and stock availability. However, customers can contact Customer Support Centre to change their delivery time or date.
If items within packaging are faulty or damaged, please notify the delivery driver who will seek to resolve this. If you notice any damage to items following delivery, please notify the IKEA Customer Support Centre as soon as possible after delivery. Please keep any damaged products so that we can inspect it at a later date. If you dispose of any damaged products before we have had the opportunity to inspect them, then this could affect any claim. We will always attempt to replace any damaged products. However if we are unable to do so we will refund you with the full amount you have paid for the products together with any relevant delivery charges. Nothing in these terms affect your statutory rights.
RETURNS AND CANCELLATION
You can return new and unused product(s) within 365 days of making your purchase. IKEA will give you a refund by the same method as your original payment for product(s) that are returned with proof of purchase in new and unused condition and, if possible, the packaging. You can return any product, even if you assembled it, as long as it’s in re-saleable condition. Unless faulty, They may refuse the return or offer an exchange or gift card only if the returns criteria are not fully met.
they will refund the price you paid for the goods and credit the refund you are due to the credit, debit or gift card that you made payment with. However, please note that they may reduce your refund to reflect any reduction in the value of the goods, if this has been caused by your handling them in a way which goes beyond what is necessary to establish the nature, characteristics and functioning of the goods. (GENERAL TERMS AND CONDITIONS, n.d.)
Cancellation or return of orders made online or via e-mail
Once you have placed your order you can cancel up until 14 days after the delivery date and they will provide a full refund.
Customer Handing and Experience at IKEA:
IKEA work to reach their goals for all customer so they offer the lowest price with a good quality. In addition, they care about their customers, it offers the service to help the customer to deliver the furniture to home. The big vision for IKEA is make a friendly environment while being at work because that is help to became a good result when customer need help to find any products in every sections. Their mission to make a good relationship between IKEA and their customer it is important for us all customer feel satisfied and happy when they shopping inside IKEA.
The balance scorecard:
Financial: IKEA is the biggest furniture retailer in the world. The last study for the financial statement show the result that IKEA revenue raised by 1,7% which amounted 36.3 billion.
Growth: IKEA has a basic vision to growth, that every people create a better life at home and feel comfortable. The IKEA range consists of approximately 9,500 products.
Every year IKEA launch about 2,000 new products. Also, we re-invest a majority of our profits in existing and new IKEA stores, as well as in product development, sustainable solutions and that help to continuously lowering price to our customers with high quality.
Customer satisfied: it builds a good relationship with customer by understand their issue then identify a way to resolve the problem. So the IKEA team is use a intelligent way to earn the customer. Also, IKEA can reach to people that detractors people then they re-engage them and keep this people as the customer in the future.
Internal business process: internal control, as defined in accounting and auditing, is a process for assuring of an organization’s objectives in operational effectiveness and efficiency, so it is the most important part to success the company.
Reasons for Customer Satisfaction:
Attractive products: Ikea stores contain a majority of innovative designs.
Affordable products: Ikea’s items are relevant for all their clients other than the rest of the stores.
Trained work force: Ikea has a set of rules for their costumers’ satisfaction, including having a customer service to answer any of their questions and concerns. Ikea’s staff members are found to be welcoming, polite and friendly.
Loyalty card: IKEA launched a loyalty card called “IKEA Family” this card holds some benefits such as, it can be used to get discounts for some products in the store.
Order placement and shipping:
IKEA has an easy way to order by online shopping so customer has able to request online what they need and they will deliver all requests to home. Also, it has a 413 stores in 38 countries. They give warrants for all customers that order reach quickly and on the time so that give trust between IKEA and customers. Furthermore, a big company in the world they need to understanding the customer needs and requirements them works together as team to give them their needs and earn their satisfaction.