Ikea Downsizes New Stores

Ikea Downsizes New Stores

January 23, 2018

Ikea’s newest stores have smaller footprints, from pop-up sites, to stores under 10,000 square feet. That’s a big change, compared to the 25,000 square feet of traditional stores.

It’s all part of a new service design for Ikea.  In the past five years, the retailer has seen a decrease in younger couples shopping at the traditional large stores.  As e-commerce has grown for competitors, Ikea is moving to test smaller stores with technology enhancements, increase staffing to give a more personal experience, and compete in the e-commerce channel.

These pilot programs illustrate the need to rework their supply chain to support multiple distribution channels in the future.

This post is based on the Bloomberg article,  The Tiny Ikea of the Future, Without Meatballs or Showroom Mazes, by Carol Matlack, January 10, 2018.

Discussion Questions
1. What are the order qualifiers and order winners being addressed in each of the new retail channel outlets being piloted by Ikea?

Guidance: Review order winners/qualifiers. Students should then apply the order winner/order qualifier concepts to each retail channel outlet being piloted.  Are there multiple ways to address each qualifier?  How would Ikea evaluate the effectiveness of each Continue reading

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Wendy’s and DoorDash

Wendy’s and DoorDash

December 28, 2017

Article Title: Wendy’s will deliver your next Baconator through DoorDash

Author of Article: Mallory Locklear

Date of article: December 1, 2017

Source URL: https://www.engadget.com/2017/12/01/wendys-deliver-baconator-doordash/

Wendy’s has partnered with DoorDash to deliver food to customers’ homes, taking advantage of the trend for restaurants to add delivery to their offerings.

By partnering with DoorDash, Wendy is better able to compete with other fast food restaurants like Taco Bell, KFC, and McDonald’s as more and more fast food customers prefer having food delivered to their house in new ways using drones, self-driving cars, and robots.

Discussion Questions
1. What are the challenges of operating a fast food restaurant?

Guidance: Discussion may focus on speed of delivery, labor intensiveness, capital intensiveness, and demand fluctuation.

2. How does Wendy’s partnership with DoorDash meet the challenges of operating a fast food restaurant?

Guidance:  Two key benefits: lower overhead and faster delivery by partnering with DoorDash to operate as a “virtual” restaurant

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