The development trend of enterprise scale is now most of the industry. Large-scale production of large enterprises can not only bring the scale effect, thus reducing cost to improve efficiency. At the same time they also shoulder more responsibility of enterprise, and a greater pressure. There is reason to believe that large companies such as IKEA in the economic, environmental and social aspects is the efforts of the small and medium-sized enterprises do. But a lot of environmental protection investment will also lead to higher costs, as ikea is competitive advantage for companies with low price, have obvious contradiction between them.
In addition, on the use time of furniture of ikea is not in use for a long time, for the purpose of "cost of big" performance on a lower price. In fiscal 2012, according to ikea summary report, in the past 10 years, its average annual reduction of 2.6%, the cumulative decline in more than 20%. Low price strategy is the direct result of OEM profit continuously diluted, the latter more than 10% of the profits from a few years ago all the way down to less than 5%, some suppliers due to rising costs even appeared "more do more losses". Industry experts pointed out that in order to profit from the limited price space, part of the contract began to reduce the product quality, and this is ikea goods problems mount, one of the important reasons for the loss. Low price, durable, recall, constitutes the vicious circle of "ikea", and behind it, is a huge waste of resources. But for problems caused by the product quality, ikea has not yet put forward solutions. The personage inside course of study above summary, ikea measures taken in current "chip", to truly realize the sustainable development, also from the most fundamental business model "the knife", change the production process, reduce resource consumption from the source.
Let consumers by himself in the investing environment, and make its own competitive advantage is not only need the brand idea of publicity. And need to segment consumers for green consumers have the ability to create a spent more high-end brands on environmental protection, and shall provide the brand design to a more compelling environmental protection brand logo, and greater environmental protection science and technology input and advertising, make its environmental protection as the fashion image is deeply rooted in the hearts of the people, to use its own strong logistics network and service concept, the success of the new brand will be able to follow, and high-end market profit margins and brand effect will also bring new development opportunities for ikea.
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