Ikea Mini Case Study

Operations Management – Assignment 1

IKEA Mini-Case

1. How is the IKEA operations design different from that of most furniture retail operations?

The distinct difference in IKEA’s operations compared to other furniture retail operations is that it focuses on self-service. IKEA expects their customers to adopt their unique methodology of getting the customers to search for, self-collect and self-assemble their products. Riding on the philosophy of self-service, do-it-yourself is also another distinct feature that IKEA differentiates itself with other furniture retailers. Most of IKEA’s furniture are designed and sold in pieces for their customers to assemble when they are back at home. Packages are in forms of a ‘flat-pack’ to allow customers

The customer is view the products available at their own time, pick the items off the shelves after deciding on which to buy in the showroom, cart them to the check-out counters for payment and bring their furniture home immediately.

IKEA’s store concept is considered ‘family-friendly’ as it allows customers to bring along the whole family, as there is a dedicated play area for parents to leave their kids there as they shop and even a cafeteria for families to have a meal before or after they have completed their

It is crucial that customers are offered other products besides the furniture that they are looking for. This is to maximize the chances that the customer may consider to purchase another product to go with their furniture. IKEA must endeavor to utilize every available floor space is decked with products that will entice the customer to spend more. Management will have to ensure that there is congruence between its sales and logistics team to make this possible.

3. What do you identify as the ‘operations function’ within IKEA? How is this different from the ‘sales function’?

The operations function within IKEA is to keep it ahead of the competition. IKEA aims to provide customers with the ease of locating cheaper but quality products. The layout of the store is clearly categorized with signage directing the customers to the type of furniture and products they are looking for easily. Customers are able to ‘feel’ and see the actual product to take measurements and make comparisons before actually bringing them home. Emphasized earlier in this assignment, IKEA encourages their customers to complete their entire purchasing process themselves from physically choosing, picking up, transporting it home and to assembling their own