12 October 2012 0 Comments

IKEA v USPS – Adapting to Change – Profit Motivated v Government Monopoly

WSJ had an  article on how IKEA is using more cost effective computer imaging to print their catalogs rather than traditional, hard copy, photography.  USPS, a government monopoly, IKEA, a private profit, motivated, company continues to raise peoples standard of living by delivering  quality, products at an affordable, price.

Profit Motivated, IKEA needs to remember the customer’s needs for quality products at an affordable price. No business can survive without meeting customer’s wants and needs without this in mind.   Government Monopolies do what the they think best; however USPS is currently facing bankruptcy  because it has not adapted to our changing technology and the needs of the “customer.”

At IKEA, profits pay both employees and investors.  However, at the USPS, The Forgotten Taxpayer is forced to pay for the necessary service of communication. Profits are good… no profits means no products and services, because businesses cannot work without them. Only government can.

“IKEA doesn’t break out just how much money this will save.  However the companies aggressive strategy works. They have been able to cut prices an average of 2% to 3% each year for the last decade, while still expanding aggressively, and  squeeze more profits from their operation on a yearly basis.

In 2011, for instance, the company booked €22,641 ($28,240) in revenue per employee, or 10% more than it did in 2009 ”   READ MORE  IKEA’s New Catalogs: Less Pine, More Pixels Computer-Generated Images Aim to Save Money on Marketing Costs as Photographers Are Retrained to Apply Skills to 3-D Scenes WSJ August 23, 2012

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