Strategic Management Ikea Analysis

IKEA to maintain their leading position will keep diversifying their products offerings always based on the “democratic aesthetic”. They will continue offering aesthetic, quality and low-priced products. Moreover, they will expand IKEA concept by opening new to stores to make their furniture available for everyone. For instance, from now to two years IKEA planned to make available to 80% of French population a store at less one hour of road. They will focus at developing its online activities to compete with the pure players. Now, most of their products are available on the IKEA website. The group has developed the “click and collect”, which is available in mostly stores. To accelerate the e-commerce transition IKEA planned to integrate external operators

IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international

IKEA is using a different operation strategy from their competitors. The operation of IKEA has to cope with large volume because their products are highly repeatability and specialised. The variety of products the operation needs to create is low to medium as they offer

Most players in the furniture industry remain highly focused on their respective domestic markets. The localization of furniture has become a norm in most countries due to domestic preferences and demand for low cost. The king of the Swedish furniture industry decided to break the custom and decided to go global with IKEA.

IKEA is known for its affordable and innovative product. IKEA was founded in 1943. IKEA home furnishing product also known for its light weight and the easy steps to assemble their products. IKEA name was form by the initial of the founder Ingvar Kamprad (IK). The places he grew up, Elmtaryd and Agunnaryd (EA). (Ikea.com/sg)

A different approach about Ikea’s success is given by Sara Kristofferson in her book Designed by Ikea, London 2014. In the first chapter, Kristofferson refers to the relationship between the swedish goverment and Ikea.

Products related to home furniture, like complements. Benefit from brand awareness. Bargain power of suppliers is relatively low. Many suppliers in the market. High rivalry to establish

The organization has mastered the art of doing business internationally and is considered to be one of the strongest global entities in today’s world. Although IKEA has succeeded on many levels, leaving the competition far behind, there are a few possible threats the company may face in the future while doing business:

Marketing Function is Typical marketing function types within a more substantial business includes executing general market trends, making marketing plan, and product development, market development, market penetration as well as strategically caring for advertising, distribution on the market, costs, after sales customer support and pr. Operations Management is Procedures management involves planning, organizing, and supervising processes, and make necessary improvements for higher profitability. The modifications in the everyday businesses must support the company's strategic goals, so they are preceded by deep analysis and description of the current techniques.

Lastly, Whirlpool 's involvement in globalization with a specific end goal to reveal insight for future methodologies or building globalization gets ready for little and medium undertakings planning to have worldwide strides.

As a business opportunity, there is scope for investment on new technologies in manufacturing. Within the manufacturing sector, the significant reform includes the removal of licensing procedures for investors, reduction of import tariffs, and liberalization of the capital rate. The result has been an increase of 44% in FDI flows from 2005 to 2006[4].

IKEA is a multinational group of companies, specialized in designs and sells home furniture (ready to assemble). They also sell accessories, bathroom & kitchen items and lately they have offered food market in their retail stores around the world. It was founded by Ingvar Kamprad who born in southern Sweden in 1926 and who was listed as one of the world 's richest people in 2013. The company is known by its modern (simplicity) design, cost control, operation details and continues product development. Today, IKEA owns and operates 225 stores in more than 30 countries. IKEA have a very nice catalogue, published in twenty languages. It is their main market tool for the retail giant.

IKEA was founded and established by Ingvar Kamprad, born in Småland Sweden. Within 6 decades that is from 1943 to 2016, IKEA has grown from the woods of southern Sweden to the largest furniture retailer in the world; also IKEA is rated as fifth most valuable retailer and most valuable furniture brand in the world.

The case study is to discuss about the different strategy used by IKEA to approach their customers. It is also talking about the localization concept from a global company based on the cultural demand from different countries worldwide. IKEA is also famous for their less expensive furniture, has some other strategies to “reach” the customers based on their needs. 4 Ps concept plays a very important role on IKEA’s success besides the way of shopping which is differ from all other their competitor.

IKEA was founded in Sweden by Ingvar Kamprad in 1943. IKEA has been established around the world in 26 different countries. Within these countries IKEA has a total of 303 stores. This business is effective in adapting to change through the use of the four key business functions; operations, finance, marketing, and human resources.