IKEA

1143 Words Nov 6th, 2013 5 Pages
Executive Summary
The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies.
The case study goes into informing its target market and pricing strategy, which is already discussed. This case study further says how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordable for them to purchase IKEA products. Some of IKEA’s main markets are in three of the fastest growing
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In the 1990’s, the IKEA market expanded not only geographically, but in terms of target market. The company began to design furniture that catered expressly to children. A website was launched to cater to the many markets that were now open, and the children’s line was enhanced on consultation with experts on with experts to develop play areas, room settings, and baby areas within the stores themselves. Kitchen-ware and kitchen areas were another concept developed in this period.
IKEA also began participating in a number of forestry projects to ensure sustainability, by taking responsibility for developing acceptable practices and policies in countries where IKEA works.

IKEA Case Study

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Company Outline
IKEA is a world renowned furnishing company reputed for selling Scandinavian-style furniture and other home-based goods.
The company has 230 stores, with operations carried out in over 42 countries with well over 70 000 employees. The stores themselves can host 410 million shoppers per year. It is a Swedish based company built on the idea of offering a wide range of well-designed, functional home furnishing products such low prices, that a majority of people will be able to afford them.
The IKEA group is currently solely owned by the INGKA Foundation through a holding company, unlisted on any stock exchange. The vision at IKEA is to

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