Profit is a wonderful Word

IKEA's Strategy behind the Profit

Trabajo Escrito , 2005 , 19 Páginas , Calificación: 1.3

Economía de las empresas - Administración de empresas, gestión, organización

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

• 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

This research essay aims to analyze the IKEA organization as a cost-leader with a mixed strategic approach. The essay will explore the company's background and history to understand its strategic development. It will then delve into the IKEA way of reducing costs, highlighting potential strategic positions. The essay will also identify key strategic issues facing IKEA as it seeks to generate and sustain competitive advantages. To analyze IKEA's strategic position, theoretical frameworks and concepts will be used and critically evaluated in adaptation to the case. Finally, the essay will categorize IKEA's strategy and highlight a general strategic approach.

• Cost leadership strategy of IKEA
• IKEA's unique approach to cost reduction
• Analysis of IKEA's strategic position using theoretical frameworks
• Identification of key strategic issues facing IKEA
• Categorization of IKEA's strategy and its general strategic approach

Zusammenfassung der Kapitel

The first chapter provides an overview of IKEA, including its company profile and history. It highlights IKEA's vision of creating well-designed home furniture at a fair and low price, its growth from a small Swedish furniture retailer to a multinational corporation, and the key factors contributing to its success, such as its focus on differentiation, cost leadership, and its founder's vision.

The second chapter delves into the "IKEA way" of creating low costs. It explains how IKEA designs the price tag first, buys in bulk, transports in flat packages, and relies on self-assembly furniture. It also discusses IKEA's target market of young people and families, its focus on price-conscious customers, and its business concept of "Low prices with meaning." The chapter further explores IKEA's approach to sourcing, manufacturing, and distribution, highlighting its reliance on subcontracted manufacturers worldwide and its centralized operations in Älmhult.

The third chapter focuses on identifying IKEA's strategy. It analyzes IKEA's strategic position using Porter's Five Forces, Porter's Generic Strategies, and Bowman's Strategic Clock. The chapter also examines IKEA's internationalization strategy and its implications for the company's future growth.

• Universidad: University of the West of England, Bristol
• Calificación: 1.3
• Autor: Sven Rosenhauer (Autor)
• Año de publicación: 2005
• Páginas: 19
• No. de catálogo: V186562
• ISBN (Ebook): 9783656996965
• ISBN (Libro): 9783656997016
• Idioma: Inglés
• Etiqueta: profit, word, ikea, strategy