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How IKEA To Achieve Competitive Advantage In Its Industry

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IKEA IKEA working in many distance to achieve competitive advantage in its industry, including low price with good quality. The main factor that has been accepted by many consumers is good design and pricing of the products (Jungbluth ,2006).Other distance meeting customer’s requirements and needs, anti-brand, business practices, democratic design and considering environmental issues as these distances illustrated on the spry diagram. Business’s mission statement defines the present business scope and broadly describes the organization’s present capabilities, focus, and activities (Byrd,M. and Megginson,L.,2009). IKEA mission is to produce home furniture with good quality and design with low cost through the development and improving staff …show more content…

• Competitors. • Recession. 3- Generating of Routes to objectives: 1- Conceder and manufacturing flat pack products at the design stage. 2- Building the stores at outskirts 3- Design and create a process what consumer wants? 4- Produce products suitable for people needs. Evaluating of routes to objective Objective Advantage disadvantages 1-Consider and manufacturing flat pack products at design stage Supporting low price by reducing storage, handling, distribution costs Product is not manufactured if flat pack is not possible. Some customers does not like self-serves and assemble themselves 2-Building stores at outskirts Rate of the place is cheaper, maintain low price with high quality Time consuming 3-Design and create a process what consumer wants Benefit every body More effort and cost for market research and survey 4-Produce products suitable for people needs Increase profit and differentiate the products Required more resources Choice of routes to objective Route Decision Justification 1- Consider and manufacturing flat pack products at design stage Include Reducing handling, distribution and storing costs and consumer-driven in shop

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Their location is very important as many people would love a coffee on their way to work or library so that’s why you will most likely see a Starbucks on the corner of the street beside your workplace. Their coffee making skills has to be good because if it’s not then people aren’t going to go in just for the sweet treats. The furniture has to be fitting towards what type of business it is. Free internet is a massive plus because of business people that are sitting in or even teenagers will like to surf the web or check their emails before work. Key Activities Key activities represents what you need to make this store function properly, which is hire good staff, long hours of work, maintain space around the store and don’t keep customers waiting.

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After the opening of first store in Sweden in 1953, by 1960’s Swedish market was saturated and as Sweden is a small market, there is not much opportunities for growth any more. IKEA decided to expand its market international starting from neighborhood Scandinavian countries according to similar consumer tastes. Internationalization process Norway was the first country where IKEA started its international expansion in 1963. Denmark and Switzerland stores were the following foreign market entries.

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Founded in Sweden at 1943 by Ingvar Kamprad, IKEA is a value-driven company with the vision “To create a better everyday life for the many people”. As of January 2009, the company became the world’s largest furniture designer and retailer. Currently, IKEA owns and operates 351 stores in 43 countries across Asia, Europe, North America and Australia. The company’s product range consists of 9,500 home furnishing articles, of which they are known to be well-designed, functional and inexpensive.

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Product design can fulfil the demands of the customers and they are willing visit the same company again in the future. Referencing to the words of Vonderembse (n.d.),

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