IKEA and Technology Essay - 825 Words

IKEA and Technology (Essay Sample) Content: Ikea TechnologyYourFirstName YourLastNameUniversity title IntroductionIKEA is a Swedish multinational group of companies that is specialized in designing and selling of ready to assemble furniture such as chairs, desks and beds, small appliances, home accessories and motor vehicles. As of January 2008, IKEA was the worlds largest retailer for furniture. IKEA was founded in 1943 by Ingvar Kamprad. IKEA is known for its cutting edge structural outlines for different sorts of apparatuses and furniture, and its inside outline work is frequently connected with an eco-friendly simplicity. The article is about a range phone-charging furniture fitted with wireless charging spots for mobile devices that IKEA has introduced in the market. This devices include bedside tables, coffee tables and lamps that use wireless charging QI that is supported by Samsungs latest handset. Ikea will also sell cover for incompatible phones. However, environmentalists are concerned abou t the recyclability should a priority for making designs for this wireless charging equipment. There are also concerns from some users of this wireless charging furniture that their devices get hot while charging wirelessly (HÃ ¥kansson Waluszewski, 2007).IKEAs business model Need for IKEAs customersFrom the model above its clear that IKEA is concerned about both the customers and suppliers welfareValue positioning of IKEAIKEA is promising to satisfy its customer needs by sustainably designing new home appliances by credibly articulating its motives of coming up with better and efficient designs for home appliances. IKEA has improved on its customer experiences, offered benefits while at the same time informing the clients about the costs and risks involved. For instance according to this article, IKEA has promised to reduce the number of separate chargers required in an office. It has also defined the target customer for the IKEA products, that is, customer from the UK and North America (Walters Lancaster, 1999).IKEAs Porters five forces analysisThe chances of new competition emerging for IKEA is minimal since the current market is saturated and the fact that since this industry requires a lot of capital is requires to start such a business the threat of new entrants into the industry is low. There is intense rivalry among the existing firms in the market of furniture especially among, Galifrom plc, Argos, Wal-Mart stores and others. IKEAs customers has a strong bargaining power since the competition is high and there are alternatives offered by global retailers of furniture. On the other hand the IKEAs supplier do not have a strong bargaining power since there are many manufacturers in the world who have the capability to partner with IKEA. The threat of substitute to IKEAs services and products is low because there are a lot of products and services that can substitute the demand for home appliances, furniture and a range of other products and services o ffered by IKEA (Hambrick Fredrickson, 2001).IKEA is incorporating technology into their furniture. For example, IKEAs has launched furniture with wireless charging spots. IKEA used the Qi technology in the wireless charging spots incorporated in their furniture. IKEA is likely to succeed in this new sector because it brings convenience to homes of its customers and most of the population owns smartphones therefore every person with a smartphone may need to buy this furniture.ConclusionIKEA could face challenges such as compet...