IKEA\'s Mission Is to Provide

IKEA's mission is to provide a wide selection home furnishing products, which is low cost and stylish products at one-stop place. IKEA is a private company that is found in Sweden, where there are over 154 stores in 22 countries (IKEA Invades America, 2011). IKEA's target market is mainly to focus on low to medium income families by offering low cost furniture with a Scandinavian design. However, by offering furniture at a low cost, the quality of the furniture may not last a long time. To overcome this problem, the company plans to redesign the Scandinavian look into designs that the customers will be able to identify with (IKEA Invades America, 2011). In order to be this successful, the company has strong leadership skills.

With that, Ikea has the management strategies that leaders are part of team and the decision process. Leaders of the group are seen as part of the group decision making process by having a quality interaction between themselves and followers. The company does not want to be lacking in group thinking and conformity because the projects would not get done in time. In order to be an effective company, the leaders see to it they conform as one so that productivity can be increased to make high profits, which means they lead by example.

Another strength of IKEA management and leadership is about their full service that involves teamwork among managers and employees. That included children's playground, low-cost food restaurants and customer care service. This is a differential advantage over its competitors, as IKEA is the only one furniture company provides all kinds of service in one place (IKEA Presentation, 2008). Its in-store restaurants have low-priced and good quality food, so customers do not have to waste time going elsewhere for lunch. This is especially well-matched to their target market, such as families with low to medium income. People state that they go to IKEA because it is a convenient place for them to spend a whole day for the furniture shopping (IKEA Presentation, 2008), according to the IKEA Presentation that was surveyed on the internet. Therefore, this management and teamwork strength with the employees adds value to the company in a way that other furniture stores do not offer.

Furthermore, by showing they put customers needs first show great leadership and management qualities. Competition is very intense because there are other furniture companies that have a better quality of products since they do not have the low cost effect. However, having the low cost furniture and customers can test the furniture in the IKEA stores while having food available to them gives IKEA the advantage over their competitors. This is why customers trust IKEA products since they can relax while shopping.

The stylishly designed, low cost furniture is appreciated by many customers. Even in the recession, IKEA was still able to maintain sales growth. IKEA has used word-of-mouth as their marketing strategy, and customer loyalty is the major component of IKEA's success.

Not every furniture company has the ability or money to develop smartphone apps. However, IKEA is able to increase its sales through e-commerce, which also increases company's accessibility and brand awareness (Ikea assembles record profits for 2011, 2011).

Moreover, IKEA is one of the very few furniture stores that carry a wide range of products with relatively low prices. Although the Bay is one of the largest retail chains, it does not offer a wide range of home furnishing and housewares selections compared to IKEA. The Brick and Leon's are furniture focused companies, but they do not operate internationally and their brand awareness is lagging behind IKEA's.

New entrants of furniture company in the forecast period are moderate because a lot of furniture companies do not go internationally due to the fact cost can increase at any time for security purpose. That goes along with the fact customers are not in high demand of furniture due to the fact, recessions have hit the economy more than once, which is another advantage of IKEA low cost products. However, some strategies that IKEA could take from their competitors are to offer a low interest rate or no interest for a year or two by increasing the furniture price so that they can have a better quality of product.