Executive Essay

1078 Words Feb 10th, 2015 5 Pages
MAN3503-Strategic Management

IKEA Case Study
Sharleen Suwaris-SUSND11

Sharleen Suwaris

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
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This money was used to start up his own company, IKEA, which stood for his intials and the first letters of the farm and village in which he grew up. The company initially sold basic items such as pens, picture frames, table runners, wallets, jewellery, nylons stockings and watches, at a low price("History of ikea," 2010). Furniture was first introduced into the IKEA range of products in 1948, and due to a positive response, the product line increased in size. Customers were allowed the ability of viewing and touching the furniture that was previously only viewable through catalogue. IKEA opened a showroom in Sweden to create a competitive advantage, due to a price war with their main competitor, so that customers could determine whether they were getting value for money. Finally IKEA made the decision to design its own furniture due to competitors trying to make suppliers boycott IKEA products. The “flat-packs and self assembly” concepts arose when an employee disassembled a table in order to prevent damage during transport ("History of ikea," 2010). In 1963 the first IKEA store outside of Sweden was established in Norway. From this point on, IKEA began to spread like a wildfire, first to Denmark, then Switzerland, Germany, Australia, Canada, Austria and Netherlands. Many alliances were struck up with

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