The company can yield high amount of profitability along with enhancing its business model through the varied recommendations given by the author of the study. The main motive of the strategic group and competitor analysis would be to identify the company’s current market and strategic position in the market. The author of the study has focused on the current strategic issues faced by the company with respect to the current situation of the furniture industry. Thus, IKEA could not only enhance its business model but also formulate varied strategies to improve the existing business systems. The analysis would also ensure the increase in the organizational outcome along with its brand restoration. Table of Contents Executive Summary 2 Introduction 5 Industry Overview 5 Scene Setting of UK Furniture Industry 5 UK Furniture Industry Size & Growth 6 Macro Environment Analysis of UK Furniture Industry 7 PESTLE Analysis 7 Competitive Environment Analysis 10 Porter’s Five Forces Analysis 10 Strategic Group Analysis 10 Competitor Analysis 10 Evaluation of Business and Corporate Strategies 11 Purpose, Mission and Objectives 11 Resources & Activities: Value Chain Analysis 11 Organizational Culture & Stakeholders 13 Value Proposition Model 14 Identification of Major Strategic Issues Facing Organization 15 Conclusion 16 Recommendations 16 References 18 Appendices 20 Porter’s Five Forces Analysis 20 Value Proposition Model 21 Introduction IKEA is one of the world’s renowned and successful brands of furniture industry and has attained success through sheer innovation, creative thinking and cautious planning and design. The company was established by Ingvar Kamprad of Swedish origin who had introduced the concept of “democratic and innovative design” in the furniture industry. The concept revolved around the fact that the designs of the furniture reflected modernity and are available at affordable prices (IKEA, 2013a). The first store was opened in Almhult, Sweden which showcased modern and innovative designs of the furniture range to the common people (IKEA, 2013c). The main objective of IKEA has always been to cater to the needs and requirements of the common people since its inception (IKEA, 2013b).The study will deal with the effectiveness of the IKEA management in providing its goods and services to the common people. The author of the study will also highlight the effective strategies devised by the company to retain its strong position in the furniture industry and gain competitive advantage over its competitors. Macro environment and competitor analysis will be done to understand the impact of the external forces on the company. Finally, the study will conclude with recommendations for the betterment of the company with respect to the current situation of the furniture industry. Industry Overview Scene Setting of UK Furniture Industry Presently, the furniture industry is recovering from the economic slowdown in UK and the entire European region. It also had a considerable effect on the UK economy. Since the year 2012, the sales of UK furniture have been declining gradually due to the effect of the difficult furniture trading environment. Customer confidence and spending was considerably very low during the tenure 2010 to 2012 due to the decrease in the purchasing power of the common people and non introduction of the innovative design by the UK furniture companies. The UK furniture co
Strategy Context Report: IKEA Executive Summary IKEA has always been known for its convenient and stylish furniture range at affordable prices and also offers customised services to the customers. In spite of the bleak prospects of the furniture industry IKEA has been generating decent amount of profitability…
The survival of firms in the global market is depended not only on the market trends but also on the strategic choices employed. Firms with a well-known brand name, like IKEA, have to continuously alternate their strategies in order to secure their position within their industry.
This paper presents brief report on the management strategy of IKEA and gives detailed analysis of both the internal as well as external environments. In order to analyze the business environments, various business analysis tools such as SWOT, PESTLE, Porter’s Five Force analysis etc will be included in the paper.
IKEA was one of the pioneers towards globalization by offering furniture that was sold unassembled to its clientele therefore it could be shipped more securely and economically and consequently sold at the lowest possible costs to their customers.
The company opened its first store in Sweden in 1958. IKEA prides itself in offering home furnishing products that are well designed with good functionality at prices that are much lower than competitors. This is achieved by employing cost cutting solutions that do not affect the quality of the product.
a renowned furniture retailing company. The study has selected Indonesia as the venue for international operation for IKEA. At present, IKEA doesn’t have any business operation in Indonesia but the company has announced that it will enter Indonesian ready-to-assemble furniture market by establishing partnership with PT Hero Supermarket by 2014 (Cahyafitri, 2012).
This is achieved by employing cost cutting solutions that do not affect the quality of the product. IKEA through its various marketing strategies has created a steady demand for its products. The company also prides itself in
The vision of the company is to make the everyday lives of individuals better. The core products of the company are the flat pack furniture. However, quite interestingly the company decided to diversify and enter the prefab housing business. The details about the
In addition, companies should also be responsible to stakeholders with regard to the environment, equity, employment, health and human rights and community development (Fulfilling Social Responsibility – Extract from Chinese Government Guidelines, 2013). Such
re is a clear vision the associates fairly compensated for their level of efforts or customers’ goals are met, an organization will be able to improve its manufacturing or distributing operations. In this context, there is a need to pay attention to such keys of operations
10 pages (2500 words)Essay
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