Ikea History, Ikea Company Profile, and Ikea Case Study

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Swedish Furniture Giant IKEA Case Study The points of the Porter's Diamond are described as four broad attributes. And these attributes promote or impede the creation of competitive advantage. These attributes are: •Factor conditions --a nation's position in factors of production such as skilled labor or the infrastructure necessary to compete in a given industry. •Demand conditions --the nature of home demand for the industry's product or service. •Relating and supporting industries --the presence or absence in a nation of supplier industries and related industries those are internationally competitive. •Firm strategy, structure, and rivalry --the conditions in the nation governing how companies are created,…show more content…
And still have money left! The company targets the customer who is looking for value and is willing to do a little bit of work serving themselves, transporting the items home and assembling the furniture for a better price. The typical Ikea customer is young low to middle income family. The Competition Advantage Strategy of Ikea's product IKEA's success in the retail industry can be attributed to its vast experience in the retail market, product differentiation, and cost leadership. Over all IKEA is doing differentiation and cost leadership. Differentiated because their products are different compared to the conventional ones already in the market. They defy the norms in terms of furniture style. They go with furniture with simple design. And they are a cost leader in terms of the price of their products are cheaper compared to other retailers. It is also shown by their company being cost conscious in everything that they do. IKEA Product Differentiation ---- A Wide Product Range The IKEA product range is wide and versatile in several ways. First, it's versatile in function. Because IKRA think customers shouldn't have to run from one small specialty shop to another to furnish their home, IKEA gather plants, living room furnishings, toys, frying pans, whole kitchens - i.e., everything which in a functional way helps to build a home - in one place, at IKEA stores. Second, it's wide in style. The romantic at heart will find choices just as many as the

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