STRATEGY
They develop and manufacture the most comfortable seating worldwide and their technologies are protected through patents, which are registered in more than 40 countries. Additionally, stakeholders understand the differing functions within the company, which indicates a high level of transparency[4].
SYSTEM
They use IT improvement systems for sharing daily information between companies, distributors, and suppliers. Employees are well informed about the company and are involved in the decision-making process. Active departmental committee insures that information goes through all departments and acknowledged by all parties[4].
STRUCTURE
Ekornes possess a hierarchical structure where each department is responsible for their tasks but they frequently report to management. The Board of Directors regularly receives and examines financial reports. Additionally, all subsidiaries have their own Board of Directors[4].
SKILLS
Employees are trained to influence consumer purchases by showcasing the patented Glide System that lets the sofas adjust to the body and the Plus System that supports the neck and lower back[4].
SHARED VALUES
Stressless wants to be the world’s most well-known furniture brand and be notorious for quality and comfort. Additionally, they aim to manufacture the most comfortable seating worldwide and continuously improve their productivity and quality[4,5].
STYLE
Product development department staff are all professionally trained, very experienced, and work closely in order to develop the best product[4].
STAFF
Employees have their own competencies. Stressless ensures that their employees are well informed about what is going on in the company[4].
Internal Analysis
Supply Chain
There are six plants in Norway, which receive shipments of raw materials, e.g. wood and aluminium[1]. Therefore, products are mainly produced in Norway and only the sofas are assembled in the U.S. If the raw material arrives at one of the plants, which depends on the product, the production starts by manufacturing of the parts, sewing the leather, assembly, varnish, and preparing the surface of the Stressless furniture. Stressless does not have any production plant in China due to regulations and to obtain quality control. Consequently, the products have to be shipped to the retailers and from their own shops in Norway to China. The products are accessible for customers only through retailers or the Stressless shops Ekornes has in China, but not through a direct online shop.
Customer
Value Chain
The Stressless design team’s goal is to develop high quality products to meet the needs of end users (customers) who are seeking furniture of ultra contemporary design and maximized comfort. Though Ekornes targets a select demographic of buyers and places a high price on their products, there are many ways they create value for customers and business partners involved in all the operations.
Ekornes run promotions throughout the year on their website to attract new customers and to retain returning customers as well. They do this by periodically offering 20% off of the purchase of sofas. In addition, customers can add the purchase of an ottoman and gain further savings. This increases profits for Ekornes and also provides a great value to attract potential customers and to remain loyal to returning customers. Another promotion Ekornes offers gives customers a chance to receive $500 off Stressless Ambassador, Consul and Diplomat recliners now throughout a set sale period.
Ekornes provides different warranties to customers to ensure loyalty for customer investments in their furniture purchase. They provide a 10-year warranty on internal mechanism, a 5-year warranty for wooden laminate base on chairs and ottomans, and a 1-year warranty on leather upholstery.
Ekornes not only provides value to the end users (customers) but they also create value for its employees and partners as well. They sell goods at a discount to distributors who buy in bulk and have established a positive B2B relationship. The company publicly provides a report of their environmental product declarations annually to showcase their commitment to sustainable practices in manufacturing. This appeals to customers who are environmentally conscious of a company’s corporate sustainability.
The more value Ekornes generate from their team, the more value they can create for customers, which in turn will create a demand from customers to pay a high price for the products and retain customer loyalty. It is a holistic view as Ekornes is able to zoom out and see that they must maximize value in their company, products, and services in all facets of operations.