Q:Why IKEA is so successful? How IKEA is different from other competitors?ANS:IKEA allows the customer to be part of the value chain and not simply play the role of an end consumer. By allowing the user to do the job gives several advantages. The first is that it saves costs and the second is that it gives the customer full control. Since it is the customer who chooses their products and not a seller force or impress the customer,this gives a very good picture of what customers really want. By allowing customers to assemble the furniture provided valuable information to the suppliers and product development department.

IKEA also allows the suppliers to be part of IKEA value chain. By partnering with suppliers and give them valuable information from customers, they can always ensure that they have a stock that meets the demand.

A third way of looking at this is that you see the customer as the product and the store as a factory. Inputs is a customer with money and needs and the output is a satisfied and happy customer with furniture. What happens inside the factory is to let the customer be included in a product line which provides the customer with as much value for as little cost as possible. It is important to always keep the customer happy. This is done by removing distractions like children, hunger, parking searching and queues. A happy customer buys more. IKEA also allows the customers to go in a special path where the customer automatically goes through the entire store. In this way, the customer never have to look for something. Because of the low prices and the predetermined path makes the customer a lot of new products which was not planned to be bought and it leads to impulsive shopping.

IKEA has managed to do something that none of the other companies have. They pursue three strategies; cost leadership, differentiation and focus.They are the best in all three generic forces. Due to the large volumes and the collaboration with customers and suppliers they have been able to have the lowest prices in the market. IKEA achived differentiation with the concept of havinga unique store, having a good environment where the customers are happy and buying more. IKEA has also focused on students, easy movers and young families. This kind of startegy is exceptional compared to any other company not only in furniture retail but also in other industries.