"Affordable solutions for better living"- as it's slogan suggests, IKEA focuses on providing quality well-designed furnitures for consumers who are seeking value and variety at a less expensive rate so that as many people as possible would be able to afford them. It's unique IKEA concept of reducing the cost at which a product is manufactured as resulted in this vision becoming a reality for all consumers of all ages; who seek affordability.

2. Retail Format

Right here in Singapore and even in all parts of the world, consumers are familiar with the "large blue box with few windows and the all-too-familiar mandatory one-way-out" layout concept of IKEA's infamous stores. Meaning, shoppers are forced to traverse all around the store before checking out at the cashier counter.

In our opinion, this was a really clever way of tricking more sales from the consumers as "impulse buying" is a human nature. This indirectly influences the shoppers to purchase more products as shoppers progress around the store and get what they needed or fancied.

In order to further enhance it's shopping experience, IKEA has developed many facilities so that family shoppers can now shop with ease while their little ones are being taken care of!

There is a nursing room just opposite the IKEA restaurant so that mothers can now attend to the needs of the young ones and there are also childcare services located in-store as well.

• Smaland- a "magical Swedish Forest" theme playground where children can get to have some fun while their parents go shopping. In our opinion, this enhances the shopping experience of families as both needs will be satisfied. This attracts both adults and children into stores and possible repeat visits.
• IKEA Restaurant- Everyone knows how Singaporeans enjoy shopping and dining! Now that Ikea has their own eatery, this further enhances the shopping experience as it provides convenience for the hungry shopper. Doubling up as a resting place for tired shoppers, csutomers can now enjoy a wide array of Swedish specialties including the famous Swedish meatballs!
• Coupled with the Hot Dag Cafe also located inside IKEA, customers can now enjoy a wide selection of food to satisfy their tastebuds.
• Furthermore, IKEA also has a Swedish Food Market in-store so that consumers can now get a taste of the Swedish Heritage. Besides this, there are also monthly combo specials and highlights, along with goodies that are offered during Swedish festivities.

Lastly, to facilitate shopping, IKEA provides measuring tape, pencil and shopping lists for shoppers to record product notes and measurements.

3. Bases for Building Sustainable Competitive Advantage.

• Low Product Costs

The first thing that sets IKEA apart from most home furnishing retail stores is how affordable its products are. IKEA first subcontracts suppliers from low cost countries all over the world and the development of products are centralized in Sweden. Cost is further lowered when customers assemble the products themselves.