Case Study Analysis Essay Example | Topics and Well Written Essays - 500 words

Case Study Analysis - Essay Example The upholding of these values is what has made IKEA what it is today. This is because in trying to please and satisfy the customer, they learnt how to expand and offer the best customer service and maintain their ethical conduct and also manage competition. One of the strategies was carrying out market research on what the customers and other regular people wanted. By so doing they came to realize that they wanted good quality but at an affordable price. This made them come up with ways of reducing the miscellaneous costs like storage and transportation which made the end product is expensive. They therefore started the â€Å"knockdown† where the customers went to assemble the furniture on their own hence cutting the transportation and storage costs. The other strategy was developing a mutual relationship with the suppliers. This way the company was able to purchase the best raw material at a lower cost and even on credit. They got to know what the competitors were doing since the suppliers of the products were the same. This made them be on top of their game by having the best raw materials and the cheapest final products and hence more and more customers (Bartlett et al. November, 2006). The formaldehyde issue was responded to by the company working directly with manufactures to ensure that the substance did not exceed the gas it produces. Later on when the problem returned, IKEA pulled their bookshelves from the market as an immediate measure before resolving the problem. In the second crises, IKEA sent a team to Geneva to learn more about the child labor problem and how they could correct the problem without having to hurt too many people in the long run and at the same time maintaining and protecting its status. This was such an ideal move that made it even move higher up in customer service and its values (Bartlett et al. November, 2006). IKEA demonstrated that it