60.1K

Verified Solution

Link Copied!

IKEA, the Swedish furniture retailer, has been able to sell its products at a price that is perceived to be lower than its main competition. IKEA's business proposition is that it is able to reduce the cost by passing some of the labor expense to its customers. Furthermore, IKEA points out that most of its customers enjoy assembling their own furniture as it gives them satisfaction of creating a product. IKEA insists that even though their prices are lower than most of their competitors, they do not compromise on quality and their products are highly fit for their intended use. IKEA also claims to be innovative and design conscious and believes in creating what looks good, feels good and lasts longer. IKEA focuses on selling flexibility and gives options to customers in terms of how they want to buy. Mostly this flexibility relates to delivery, furniture assembly and payment. IKEA is highly satisfied with their customer retention rates and even proud to announce, Once you become an IKEAIAN nothing else will do". IKEA largely puts down their success to providing value that is driven by the customers and consumers. Put together a detailed value wedge for IKEA. Describe which key values customers' get from IKEA and in what shape and form. Also, define the type of customer for whom IKEA products are most appealing and least appealing

Answer & Explanation Solved by verified expert

See Answer