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Business strategy IKEA group
Pages 8 (2008 words)
IKEA group has been founded by Ingvar Kamprad who has successfully led the company to become a profitable global venture (Nattrass and Altomare, 1999). The company opened its first furniture showroom in 1953 and is now present in thirty one countries across five continents (Rothacher, 2004)…
Using secondary research this report will present the emergent and direct strategies of this company and will also explain the reasons for IKEA to follow them. The report will then explain the importance of written strategic plan and cite the approach companies must take to deal with emergent events. This report also presents the future strategies for IKEA by using Ansoff's matrix.
The history of IKEA in the Appendices section shows its steady growth over the years. This report now gives examples of emergent strategies and direct strategies of IKEA and the reasons for following them.
(i) The company generally works through a network of worldwide suppliers and doesn't manufacture its own products. But, the company has few factories that set benchmarks for their suppliers on production economy, and quality (Nattrass and Altomare, 1999). The company focuses on achieving efficiency at low cost without compromising on the quality (Rosenhauer, 2008). By setting an example in front of the suppliers, the company can get better products from them and deliver more customer satisfaction.
(ii) IKEA is also the joint owner or financer in a number of countries to secure supplies and help suppliers develop (Nattrass and Altomare, 1999). This may increase IKEA's competitiveness as companies can increase their competitive positioning by undertaking key activities in the value chain. ...
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