IKEA Company – Case Study Example

Service Element of IKEA There are different methods of service delivery adopted by IKEA including shopping online and from traditional outlets of thecompany (IKEA, 2010). When a customer visits a traditional IKEA outlet then physical evidence and the product displays increase the tangibility of the product however, when a customer buys the product online, the product tangibility does not exist. Out of these two examples, the service element which I have chosen is the first one. The core value of IKEA’s products is easy-to-assemble and easy-to-carry. The products of IKEA are available in packages which are placed in the shelves and the customer cannot open and arrange the package in the outlet however, they can get an idea about the display of each furniture item available on the shelves.
SWOT
The SWOT analysis of this service element of IKEA is following:
Strengths
Weaknesses
1. Easy to carry
2. Easy to transport
3. Light weight
1. Ensuring the quality and number of items to be assembled is a time consuming and difficult task
Opportunities
Threats
1. Movement of materials become easier for the company
1. Missing component or any damage inside the package can have a negative impact on customer
2. The potential of sales may decrease if the customer does not see the actual arrangement of the items inside the package
IKEA is already trying to make this service element more tangible by showing the display of each packaged furniture item.
Strategy to Improve the Servicescape
IKEA should improve this service element by improving its servicecape. IKEA’s stores are full of furniture displays and items of shelves. For the convenience of the customers, IKEA should establish a medium-sized room in each of its outlet where the customers may go and open their purchased package and can ensure that all items are available in it. In this way company will be also able to reduce its post purchase complaints. Therefore, the company has to be prepared to update and modernise its evidence (UOB-community).
Bibliography
IKEA. (2010). All About Online Shopping. Retrieved October 17, 2010, from http://www.ikea.com/ms/en_GB/customer_service/shop_online/all_about_shop_online.html
UOB-community. (n.d.). Service Delivery and Servicescape Strategies. Retrieved October 18, 2010, from
http://webcache.googleusercontent.com/search?q=cache:l4gQU9P_6KYJ:uob-community.ballarat.edu.au/~jharman/JM601/JM601_lecture8_2007.ppt+strategies+for+servicescape&cd=1&hl=en&ct=clnk&gl=pk