Ikea Versus Bob Discount Furniture Essay

1630 words - 7 pages

Competition Analysis

Bob Discount Furniture is the competitor chosen by our group. Bob’s discount furniture and IKEA both compete on a low-cost strategy. The current CEO is Edmond J English. Bob’s discount furniture first opened its doors in 1991. Since then Bob Discount Furniture has grown to fifty stores in eleven states. Most are located in the Northwest and Mid-Atlantic. Their headquarters is located Manchester, CT. Bob’s Discount Furniture have a fast paced sales environment, family like setting with co-workers and managers, good selling incentives for sales associates, good social mobility and advancement opportunities. They compete own their fashionable furniture that exceed “discount” expectations.
Bob’s Discount Furniture is big on social responsibility like IKEA. Bob’s Discount Furniture has multiple programs that gives back to the community. Bob’s Discount Furniture Charitable Foundation is the head of the charitable work of the entire Bob’s Discount Furniture. The foundation and its employees, support hundreds of nonprofit organizations with sponsorships and contributions. Bob’s Discount Furniture donations annually exceed $1.5 million. For more than 15 years Bob’s lend a hand with American Red Cross in New England to promote blood drives. They have supported Nutmeg Big Brothers Big Sisters, The Jimmy Fund, Camp Rising Sun, Family & Children’s Aid, Connecticut Children’s Medical Center, American Cancer Society, Easter Seals, March of Dimes, National Conference for Community Justice, The Johan Santana Foundation, The Andrus Children Center, and Special Olympics.

STEP Analysis
Social
• Social Responsibility
IKEA has made social responsibility a big part in their organization culture. Corporate social responsibility is the idea that businesses should act in a way that enhances society and their stakeholders (Lawrence and Weber, 2014). IKEA in the late 1990s was one of the companies named in a documentary that received rugs from South Asia. The rug importers in South Asia were using child labor and the work conditions were horrible. This created a public issue for IKEA. Protest against IKEA began until the company stops importing rugs from places where child labor was used. IKEA area manager for carpets made a statement " The for use was not a high-profile public issue at the time...We were caught completely unaware" (Lawrence and Weber, 2014). IKEA's public issue concerning child labor is an indication that there is a performance-expectations gap. This gap represents what the firm wants to do or is doing and what stakeholders. The use of child labor offended many customers. IKEA damage their reputation and lost customers. Customers knowing IKEA uses child labor make cause them to know longer support IKEA and start shopping at competitor stores. Other companies and suppliers made not want to work with IKEA because...

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