In the following research essay, the IKEA organization as a cost-leader with a mixed strategic approach will be analysed. For exposing and identifying the strategy it is important to understand background and history. Therefore, a brief overview will be given. Afterwards, the IKEA way of reducing costs will be described to underline potential strategic positions. Furthermore, key strategic issues, facing IKEA as it seeks to generate and sustain competitive advantages will be identified. In order to analyse IKEA?s strategic position, theoretical frameworks and concepts will be used. Likewise, these frameworks will be critically evaluated in adaptation to the case. Finally, the IKEA strategy will be categorized and a general strategic approach will be highlighted.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- OVERVIEW OF THE COMPANY IKEA
- Company Profile of IKEA
- History of IKEA
- THE ‘IKEA WAY' - CREATION OF LOW COSTS
- IDENTIFYING THE STRATEGY OF IKEA
- Porter's Five Forces
- Porters' Generic Strategies
- Bowman's Strategic Clock
- Internationalization of IKEA
- IMPLICATION OF THE ANALYSIS
- CONCLUSION
- REFERENCES
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This research essay examines the IKEA organization as a cost-leader with a mixed strategic approach. The paper aims to expose and identify the strategy of IKEA by exploring its background, history, and key strategic issues. This analysis will use theoretical frameworks and concepts to evaluate IKEA's strategic position and highlight its general strategic approach.
- IKEA's cost-leadership strategy
- IKEA's mixed strategic approach
- The IKEA way of reducing costs
- Key strategic issues facing IKEA
- Theoretical frameworks and concepts applied to IKEA's case
Zusammenfassung der Kapitel (Chapter Summaries)
The first chapter provides an overview of IKEA, including its company profile and history. The second chapter focuses on the “IKEA way” of creating low costs, illustrating how IKEA designs, produces, delivers, sells, and buys its products. Chapter three explores IKEA's strategic position, analyzing the company's use of Porter's Five Forces, Porter's Generic Strategies, Bowman's Strategic Clock, and its internationalization strategy.
Schlüsselwörter (Keywords)
Key terms and concepts in this analysis of IKEA's strategy include cost-leadership, mixed strategic approach, Porter's Five Forces, Porter's Generic Strategies, Bowman's Strategic Clock, internationalization, and the “IKEA way”.
Frequently Asked Questions
What is IKEA's primary competitive strategy?
IKEA is primarily known as a cost-leader, focusing on providing functional home furnishings at prices so low that as many people as possible can afford them. It uses a mixed strategic approach to maintain this position.
What does the “IKEA way” of reducing costs involve?
The “IKEA way” involves a holistic approach to cost reduction, including flat-pack packaging to save on transport, self-assembly by customers, and long-term relationships with suppliers to ensure low production costs.
How does Porter's Five Forces model apply to IKEA?
The analysis uses Porter's Five Forces to evaluate the competitive environment of the furniture industry, looking at factors like the bargaining power of suppliers, the threat of new entrants, and the intensity of rivalry.
What is Bowman's Strategic Clock in the context of IKEA?
Bowman's Strategic Clock is a framework used to identify IKEA's position in terms of price and perceived value, showing how IKEA balances low prices with high functional value to sustain its competitive advantage.
How has internationalization shaped IKEA's strategy?
IKEA's global expansion has allowed it to achieve massive economies of scale, further driving down costs and making its brand recognizable worldwide as a leader in affordable furniture.
- Quote paper
- Sven Rosenhauer (Author), 2005, Profit is a wonderful Word, Munich, GRIN Verlag, https://www.grin.com/document/186562
