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Analysis of the famous case study - IKEA Furniture Retailer Company

Number of Words : 6008

Number of References : 35

Popular By : IKEA Business Strategies, Current IKEA Strategy

Contents

 Chapter 1
 1.0 Introduction………………………………………………………………….4
 1.1 Scope: IKEA Business Model Applied in Asian Countries………………....4
 1.2 Objectives……………………………………………………………………4
 Chapter 2………………………………………………………………………..5
 2.0 Company Background…………………………………....………………….5
 2.1 Industry and Company Background………………………………………....5
 2.2 Company Product and Services……………………………………………...6
 2.3 Corporate and Current Business Strategies………………………………….6
 2.4 Performances of the company……………………………………………….6
 2.5 Current Strengths……………………………………………………………7
 Chapter 3……………………………………………………………………….7
 3.0 Business Level and Corporate Level Strategy of IKEA…………………….7
 3.1 Assessment of current Strategic Distinctive Competitiveness of IKEA…...10
 3.2 Organization Gaps to Date…………………………………………………10
 3.3 Performance of Current IKEA Strategy……………………………………11
  3.3.1 Analysis IKEA’s failure in the US Market……………………….11
  3.3.2 Expanding IKEA’s Business in China Market with New Strategy 11
  3.3.3 Current Strategy on Market Diversification………………………12
 Chapter 4
 Recommendations……………………………………………………….13
 Chapter Conclusion…………………………………………………………………………..14
 References……………………………………………………………………………15
 Appendices…………………………………………………………………………

Description

This report answers the following questions – <br />1. What business and corporate level strategy did Ingvar Kamprad predominantly<br />follow to attain impressive growth of IKEA? What distinctive competencies has<br />the company built over the years to achieve competitive advantage?<br />2. Why do you think IKEA failed in the USA market despite its early signs of<br />success?<br />3. IKEA’s goal of maintaining growth would mean expansion into non-western<br />markets, including most notably in China where IKEA has outsourced 21 percent<br />of it total supplies. Assess critically the growth potential for IKEA in the Chinese<br />market. Is IKEA’s competitive advantage secured in China? Present arguments<br />needed here.<br />4. Based on previous experience of diversification in China and Japan, do you think<br />that IKEA should go for more diversification in other Asian countries? Justify<br />your answer with arguments. Critically evaluate the diversification strategies<br />options (acquisition, internal new venture, joint venture) that would add more<br />value for IKEA to follow.<br />5. What form of innovations in IKEA has contributed to the growth of its business?<br />What factors are critical to continue its success in innovations?<br />

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