Awida 2
1.
One of the biggest issues that IKEA faced was having enough materials for the amount of demand asked for by customers. As a quarter of IKEA’s items are manufactured in China during the Covid-19 pandemic they suffered severely. As they originally had an issue with having enough resources, flights and shipments were put on hold which put IKEA in a big problem to get enough products or any products at all. Another issue that IKEA has been dealing with is the relationships they have with suppliers. This is a problem due to the amount of suppliers they have globally. Product quality might vary due to differences in production procedures, materials, and quality standards across suppliers. As a result, in order to maintain the appropriate level of quality for its goods, IKEA must have strong supplier management processes in place. 2.
The newest additions that IKEA has added have some of the newest technology any store has involved into their systems. The new addition of VR has been going viral because of how well it is doing. People can come into the store and shop around and if they have found a piece of furniture that they are interested in they can see how it looks in a room through the VR. IKEA also began expanding its research and development teams in order to devote more time to exploring and introducing innovative methods of working both internally and internationally. This investment in continual research and development introduces new ideas into the firm, increases operational efficiency, and maintains the organization on an open-ended development track, allowing it to implement new changes in the way it runs if comparable conditions emerge in the future. 3.
By increasing the software development and allowing for almost everything to be digitized this created for much better and easier supplier relationship status. Not only better relationships but also better communication ensures for less mishaps and greater product quality. As Covid-19 had struck IKEA very hard they managed to have an entire shift into the media. This is when all of the customers shopping experiences even up until the present day had started by checking the online website. Changing to online also allowed for them to see the customers touchpoints. Seeing a new type of data created for operational efficiency and smarter product management. 4.
This was a very successful campaign and allowed for much greater internal and external profits. This has benefited IKEA not only for the future as they continue to develop more technology into the systems but also for other companies as this has revolutionized the game. The e-commerce growth has gone from 7% of revenue to 31% in 3 years. Not only has the company benefited from this but the customers have been satisfied. They get to use these incredible features and have a much better experience and easier shopping. What they are looking to do in the future is acquire a new feature that is being developed, using AI to see the furniture in your own room. You can scan your house room by room and turn it into a full 3D design that you can try out at the IKEA home product range.
