RSM250H1 Chapter Notes - Chapter 5: Ikea, Targeted Advertising, Institute For Operations Research And The Management Sciences
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Ikea was found in 1943 by a 17-year-old in sweden. The main ai(cid:373)/(cid:448)alue (cid:449)as (cid:862)no wa te(cid:863), (cid:449)hile (cid:373)a(cid:374)ufa(cid:272)tu(cid:396)i(cid:374)g a(cid:374)d e(cid:448)e(cid:374) othe(cid:396)(cid:449)ise. I(cid:374) additio(cid:374), e(cid:373)plo(cid:455)ees (cid:449)e(cid:396)e o(cid:374) a first-name basis not by seniority or position. They would first set a product priority; later, they would use the (cid:862)(cid:373)at(cid:396)i(cid:454)(cid:863) to p(cid:396)i(cid:272)e thei(cid:396) p(cid:396)odu(cid:272)t. it collected data of its competitors and then use it as a benchmark to set their own price. The matrix was also used to identify the gaps in their product line. By adding all the existing products in the matrix, the company would understand that they need to design/build a product if they see any gaps in the matrix. After setting the retail price, the company would start looking for a manufacturer. The company would circulate the price and description of the product amongst all the suppliers around the world, and they would compete to get the deal.
