Reference no: EM133226047

Assignment:

How do draw the info below into the business canvass model?

There are a few key things that IKEA should consider in their business canvas model for 2021. Increasing their online presence and sales, expanding their product range, and improving customer service are some of the key areas they should focus on in order to grow their customer base.

Step-by-step explanation

Furniture, kitchen appliances and home decor are all made by IKEA, a Swedish multinational enterprise. Sweden is where the company is based. IKEA has been a major influence on the modern furniture industry since its foundation in 1943.The success of IKEA can be attributed to the company's innovative business model, which features a supply chain that spans the globe, an emphasis on utility and affordability, and a flat-pack delivery method. IKEA has been making efforts in recent years to grow its internet presence as well as its online sales. Additionally, the corporation has been increasing the amount of money it invests in environmentally friendly practices.

As IKEA looks toward the future, there are a few essential factors that the corporation must take into consideration while developing their business canvas model for the year 2021.

Increasing both their online presence and sales

In recent years, IKEA has increased the amount of money they put into their online sales and presence. They should keep making investments in this sector during the year 2021 in order to expand both their consumer base and their sales. At the moment, around ten percent of IKEA's total sales come from their online store.

On the other hand, it is expected that by 2025, this percentage will have risen to 25%.IKEA will not be able to accomplish this objective unless they maintain their investment in their online platform as well as their delivery infrastructure. Furthermore, IKEA should priorities increasing their spending on online advertising and marketing. If IKEA invests in the above areas, they will be able to attract more customers and make more money overall.

Increasing the breadth of their product offering

IKEA is well-known for selling furniture that is both economical and beautiful. They should think about increasing their product selection in 2021 to include additional home décor items as well as accessories during that year. They will be able to appeal to a wider variety of customers as a result of this. The current assortment of products offered by IKEA consists of, among other things, household furniture, kitchen appliances, and decorative accents. However, the company does not offer a wide variety of home décor items and accessories, which is a significant limitation. If IKEA adds more products to their catalogue, they will be able to compete better with other stores and appeal to a wider range of customers.

Improving the company's service to its customers

IKEA has, in the past, been subjected to criticism over the quality of its customer care. They should make enhancing their customer service a primary goal for 2021 in order to increase the level of satisfaction experienced by their customers. The customer service department at IKEA has come under fire for being unreasonably slow and unresponsive.

In addition, the customer care that is offered in IKEA stores is frequently not as helpful as it may be. IKEA needs to focus on growing the number of employees they have and educating those employees in order to improve their customer service. In addition, IKEA should put money into technology that will assist in enhancing the experience of shopping there for customers. If IKEA puts money into these areas, they will be able to improve their customer service and make more of their customers happy.

Investing in sustainability

IKEA has positioned itself as a company that prioritizes environmental responsibility. They should keep investing in environmentally friendly business operations well into 2021 if they want to attract the attention of consumers who are concerned about the environment. IKEA has been a pioneer in environmentally responsible business operations for a number of years.

The company has committed to only using renewable and recycled materials in its goods, and they have also made investments in renewable energy sources such as solar and wind power. IKEA should place a primary emphasis on expanding their level of transparency in addition to maintaining their current level of investment in these areas. IKEA will be able to win back the trust of customers if it clarifies its policies and procedures regarding environmentally friendly business operations.

Improving their overall channel approach (omnichannel)

In recent years, IKEA has been making efforts toward the development of an omnichannel strategy. They need to put more effort into improving their omnichannel strategy in 2021 so that they can offer improved service to their customers. The IKEA website, mobile app, and in-store experience are all components of the company's omnichannel strategy. IKEA should put the most effort into integrating their online and offline sales channels to improve their omnichannel strategy.

These are a few of the most important aspects of IKEA's future business plan that should be reflected on their canvas. If IKEA focuses on these specific areas, they will be able to keep growing their business and compete well in the furniture market.