Ikea’s Low Price Strategy
- Instead of having sales people attending customers, Ikea uses a self-service model based on clear in store displays.
- Rather than relying on third party manufacturers, Ikea designs its own low-cost, modular, ready-to-assemble furniture. 2
- Items are provided to customers in flat-packed form, which results in a wide range of supply chain contributions. The Flat package reduces the cost of shipping, storing, construction and assembling. It also provides greater transportation capacity and warehouse space.1
Challenges for Ikea
- Article: How Ikea Designs Its Sexy Price Tags (Business 2.0, October 2002)