Business strategy IKEA group - Case Study Example

Comments (0) Cite this document
IKEA group has been founded by Ingvar Kamprad who has successfully led the company to become a profitable global venture (Nattrass and Altomare, 1999). The company opened its first furniture showroom in 1953 and is now present in thirty one countries across five continents (Rothacher, 2004)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
Business strategy IKEA group
Read TextPreview

Extract of sample "Business strategy IKEA group"

Download file to see previous pages Using secondary research this report will present the emergent and direct strategies of this company and will also explain the reasons for IKEA to follow them. The report will then explain the importance of written strategic plan and cite the approach companies must take to deal with emergent events. This report also presents the future strategies for IKEA by using Ansoff's matrix.
The history of IKEA in the Appendices section shows its steady growth over the years. This report now gives examples of emergent strategies and direct strategies of IKEA and the reasons for following them.
(i) The company generally works through a network of worldwide suppliers and doesn't manufacture its own products. But, the company has few factories that set benchmarks for their suppliers on production economy, and quality (Nattrass and Altomare, 1999). The company focuses on achieving efficiency at low cost without compromising on the quality (Rosenhauer, 2008). By setting an example in front of the suppliers, the company can get better products from them and deliver more customer satisfaction.
(ii) IKEA is also the joint owner or financer in a number of countries to secure supplies and help suppliers develop (Nattrass and Altomare, 1999). This may increase IKEA's competitiveness as companies can increase their competitive positioning by undertaking key activities in the value chain. The company also makes efforts to form close relationship with the suppliers and helps them develop, and innovate through training programs (Rosenhauer, 2008). This ensures better cooperation with the suppliers who strive to give quality products at a very low price. Relevant and timely training can provide the valuable guidance that can help suppliers produce the right product for the customers.
(iii) The global furniture giant is characterized by lesser hierarchical structure and absence of bureaucracy. This helps the company to have centralized control over key functional activities. The Chairman of the company believes that strategic decisions of an organization should be reached in a simple manner (Rosenhauer, 2008). IKEA also delegates important strategy decisions to their store managers (Nesbitt, 2004). Apparently, this freedom to take decisions will make the managers feel more responsible towards their jobs and they will become more loyal to the organization.
Emerging Strategies
(i) The company has begun to focus on inviting the customers to be involved in the design and production of the products. IKEA is focussed on redefining roles of their stakeholders in the furniture business so that it can effectively beat the competition (Rosenhauer, 2008). The company has also begun to target young people who have a liking for stylish designs available at affordable price (Winfield et al, 2004). By involving the stakeholders in the design the company can provide customers with products that they really want and this will give them a competitive edge. The company will no longer waste its energies in unproductive work and focus on making only those designs that click.
(ii) IKEA was driven to change its strategy and pay more attention to taking care of the environment. The company was criticized for the huge packaging waste, using excess of PVC plastic and cutting trees to make its catalogues. This global home furnishings ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Business strategy IKEA group Case Study Example | Topics and Well Written Essays - 2000 words”, n.d.)
Business strategy IKEA group Case Study Example | Topics and Well Written Essays - 2000 words. Retrieved from
(Business Strategy IKEA Group Case Study Example | Topics and Well Written Essays - 2000 Words)
Business Strategy IKEA Group Case Study Example | Topics and Well Written Essays - 2000 Words.
“Business Strategy IKEA Group Case Study Example | Topics and Well Written Essays - 2000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Business strategy IKEA group

Business Consultancy: IKEA

...? Business Consultancy- The case of IKEA Part Report Table of Contents Executive summary 3 Introduction 3 2. IKEA - Situational analysis 4 2.1Market context of IKEA 4 2.2 SWOT analysis 4 2.3 Competitors 6 2.4 Competitiveness of the organization within its industry – changes required 8 2.5 Implementation of the suggested changes 11 3. Conclusion 12 References Appendices Part 1 – Report Executive summary The survival of firms in the global market is depended not only on the market trends but also on the strategic choices employed. Firms with a well-known brand name, like IKEA, have to continuously alternate their strategies in order to...
9 Pages(2250 words)Essay

Business strategy of IKEA

... on where to place their resources to enable maximum utilization. Also referred to as the Boston Consulting Group growth share matrix, it displays various business segments of a firm on a graph of the market growth rate vs the market share relative to competitors (Giffin 2010). This model was verified into the priority matrix. The priority matrix focuses on importance and performance of business functions. This model will apply to IKEA in the context of its cost focused strategy of furniture production. The fact that the economic environment is not suitable post recession, IKEA should focus on its cash cow strategy of producing cost affective furniture to cater to Bs and Cs of the public, rather than investing in highly stylish... ....
8 Pages(2000 words)Essay

Business Strategy Analysis: Ascena Retail Group. Inc

...? Business Strategy Analysis: Ascena Retail Group. Inc. December 8, The company, Ascena Retail Group engages in the Apparel business. The company has been in business for the past 50 profitable years. The research focused on gathering the financial, economic, marketing strategies, Porter’s Five Forces, and history of the company. The research included the processing the financial statement analysis of the company’s 2011 and 2012 business operations period. Summarizing the important points of the above discussion, the company was able to produce a favorable financial performance during the 2011 and 2012...
12 Pages(3000 words)Research Paper

The Global Strategy of IKEA

...IKEA has become one of the most successful furniture retailer’s in the world. IKEA low-cost-approach to doing business and innovative marketing and brand identity has allowed IKEA to mold and convert their brand image and company to become a lifestyle oriented company. IKEA was one of the pioneers towards globalization by offering furniture that was sold unassembled to its clientele therefore it could be shipped more securely and economically and consequently sold at the lowest possible costs to their customers. The company carefully adapted their corporate structure, business model, and culture to maintain and build their brand image,...
2 Pages(500 words)Essay

IKEA Internationalization Strategy

...IKEA Internationalization Strategy Today IKEA stands as one of the highly successful mass-market retailers. The Sweden company holds exactly 230 extravagant home furnishing stores in about 33 countries.The internationalization of IKEA is basically the root cause for the expansion of the business to the extent at which it stands presently. However the Sweden based furnishing house was not consistently the best retailer in the history of furnishing, it was after the incorporation of some effective internationalization strategies that the founder Ingvar Kamprad was able to bring IKEA among the top notch furnitures selling...
3 Pages(750 words)Essay

Strategy Context Report : IKEA

...motive of the strategic group and competitor analysis would be to identify the company’s current market and strategic position in the market. The author of the study has focused on the current strategic issues faced by the company with respect to the current situation of the furniture industry. Thus, IKEA could not only enhance its business model but also formulate varied strategies to improve the existing business systems. The analysis would also ensure the increase in the organizational outcome along with its brand restoration. Table of Contents Executive Summary 2 Introduction 5 Industry Overview 5 Scene Setting of UK Furniture Industry 5 UK Furniture...
12 Pages(3000 words)Essay

IKEA Business Ethics Dilemma of economic progress. Society believed that social progress was achieved through continued economic growth and progress. The accumulation of material wealth and affluence is no longer automatically equated with social progress by a growing number of influential Americans. Public policy sees social progress as a goal to be achieved in itself and not necessarily the same as economic progress (Kotler & Lee 23). With the new parity between social progress and economic progress, social progress is seen as a goal to be deliberately sought--by business and other social groups (Carmichael and Drummond 77; IKEA Home Page 2008). Here is where national goals and governmental programs...
9 Pages(2250 words)Case Study

Business Strategy - IKEA

...agents that work closely in determining the pattern of strategies of IKEA. PEST stands for Political, Economic, Social and Technological analysis. As the name suggest. PEST analysis facilitates the assessment of a business entity against the political, economic, social and technological determinants that play an influential role in the operation of IKEA (John R. Ruberson, 1999). As such, PEST analysis serves as a macro-economical tool that aims to study the important ingredients of strategic management that form an integral part of IKEA’s strategy. As IKEA is an international organization, it operates in several...
12 Pages(3000 words)Essay

Current Strategy of Ikea

.... Consequently, IKEA has diversified products with some being customized to meet the needs and expectations of the customers. Additionally, the company focuses on individuals other than mass markets. IKEA’s current strategy is characterized by cultural orientations that are market specific and are spread among the various segments. The current IKEA strategies are responsible for extending its leverage in the market. The introduction of such strategies has been essential in ensuring IKEA’s competitive advantage in the market. Work Cited Daft, Richard L, Martyn Kendrick, and Natalia Vershinina. Management. Andover:...
2 Pages(500 words)Essay

Strategy Plan for Ikea

...Strategy Plan for Ikea IKEA is one of the multinational groups of companies in the world dealing with several products. This company sells and designs furniture appliances and home accessories. Ikea company offers affordable products. Ikea has over three hundred stores all over the world enjoying the good name it has created for itself in different marketscompany. IKEA has a huge selling margin compare with other companies in the world. The company sold small accessories for homes in Sweden then later the business expanded with a very high rate, and it started making furniture (Moorman 1). The new...
3 Pages(750 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Business strategy IKEA group for FREE!

Contact Us