Profit is a wonderful Word: IKEA's Strategy behind the ProfitSeminar paper from the year 2005 in the subject Business economics - Business Management, Corporate Governance, grade: 1.3, University of the West of England, Bristol, language: English, abstract: 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. |
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Adapted from Charles Ålmhult analysis Bowman's Strategic Clock Burkard business model business system Charles Booth Company Profile cost-leader cost-leadership strategy creating low costs Datamonitor differentiation and focus differentiation strategy economies of scale efficiency expanded his product External factors flat packages focus strategy focused frameworks and concept furniture at low furniture retailer Furthermore History of IKEA hybrid route hybrid strategy IDENTIFYING THE STRATEGY IKEA store IKEA's business IKEA's design IKEA's mission statement IKEA's strategic position IKEA's success Ingvar Kamprad Johnson & Scholes Kling & Gotemann leadership Lecture Slides 2004 logistic low price strategy Martenson Normann & Ramíresz organisation Porter Porter's Five Forces Porter's Generic Strategies potential strategic product range reducing costs reducing quality relationships with suppliers secondary activities selling stakeholders strategic approach STRATEGY OF IKEA strong corporate culture sustainable competitive advantage Sweden Swedish Sweet & Nilsson target group trading service offices Traditional furniture unique business value chain Walter worldwide