Contents

• Chapter 1
• 1.0 Introduction………………………………………………………………….4
• 1.1 Scope: IKEA Business Model Applied in Asian Countries………………....4
• 1.2 Objectives……………………………………………………………………4
• Chapter 2………………………………………………………………………..5
• 2.0 Company Background…………………………………....………………….5
• 2.1 Industry and Company Background………………………………………....5
• 2.2 Company Product and Services……………………………………………...6
• 2.3 Corporate and Current Business Strategies………………………………….6
• 2.4 Performances of the company……………………………………………….6
• 2.5 Current Strengths……………………………………………………………7
• Chapter 3……………………………………………………………………….7
• 3.0 Business Level and Corporate Level Strategy of IKEA…………………….7
• 3.1 Assessment of current Strategic Distinctive Competitiveness of IKEA…...10
• 3.2 Organization Gaps to Date…………………………………………………10
• 3.3 Performance of Current IKEA Strategy……………………………………11
• 3.3.1 Analysis IKEA’s failure in the US Market……………………….11
• 3.3.2 Expanding IKEA’s Business in China Market with New Strategy 11
• 3.3.3 Current Strategy on Market Diversification………………………12
• Chapter 4
• Recommendations……………………………………………………….13
• Chapter Conclusion…………………………………………………………………………..14
• References……………………………………………………………………………15
• Appendices…………………………………………………………………………

Description

This report answers the following questions –
1. What business and corporate level strategy did Ingvar Kamprad predominantly
follow to attain impressive growth of IKEA? What distinctive competencies has
the company built over the years to achieve competitive advantage?
2. Why do you think IKEA failed in the USA market despite its early signs of
success?
3. IKEA’s goal of maintaining growth would mean expansion into non-western
markets, including most notably in China where IKEA has outsourced 21 percent
of it total supplies. Assess critically the growth potential for IKEA in the Chinese
market. Is IKEA’s competitive advantage secured in China? Present arguments
needed here.
4. Based on previous experience of diversification in China and Japan, do you think
that IKEA should go for more diversification in other Asian countries? Justify
your answer with arguments. Critically evaluate the diversification strategies
options (acquisition, internal new venture, joint venture) that would add more
value for IKEA to follow.
5. What form of innovations in IKEA has contributed to the growth of its business?
What factors are critical to continue its success in innovations?