About the company

y IKEA is a privately held international home products y y y y

co. Founded in the year 1943 by 17 year old Ingvar Kamprad in Sweden. Co. designs and sells ready to assemble furniture such as beds and desks, appliances and home accessories. IKEA has 332 stores in thirty-eight countries. The other products are houses and flats, family mobile.

IKEA stores are usually very large blue buildings with yellow accents and few windows.

The DIY concept

y Key to success is company s relationship with

customers y They drawn the customers in to its production system. y Creates value for themselves through participating in the selection, transportation and assembly process. y The company creates value through an easy fun and pleasant experience to customers.

y The stores are set up with inspirational displays incl,

realistic room setting and real life homes

y To make shopping easy , free strollres and supervised

child care are provided.

y When customers enter they given catalogs , tape

measures ,pen, notebook to use as the shop.

y After payment take their purchase to their cars on carts

y At home customers take role of manufacturer in

assembling the new furnishings.

y The customer also provide furniture loading and

delivery service for themselves.

y At home customers assemble the new furnishing

following carefully written, simple and direct instruction.

Other initiatives
y The stores are set up with inspirational displays y y y y

including realistic room settings. To make shopping easy free strollers are allowed. Many stores have a play area, named Smland where Supervised child care is provided. Wheel chairs are provided for those who need them. IKEA Family (Loyalty Card)

Global Expansion
y They provides websites in different languages. y Availability of catalogs in 17 different languages. y IKEA allows each store to tailor its mix according to

the local market needs and budget.

In China
y Store layout have a selection of balcony furnishings y y y y

and displays Few kitchen items and furnishings are shown More extensive delivery service Customers choose to have their furniture assembled rather than doing it themselves. Make DIY strategy more flexible to suits customers realities in China

Conclusion
IKEAs success is attributable in part to recognizing that customers can be part of the business system, performing roles they have never performed before. Its service depends on customers to perform many critical service roles for themselves including measuring, locating, transporting and assembling their own furniture Through the process, customers acting as productive co producers and co creators of value.