Strategic Management on Ikea

6142 Words25 Pages
Content 1 Introduction 2 2 IKEA’s Main Strategies 2 2.1 Business Level Strategy 2 2.2 Corporate Level Strategy 3 3 Strategic Position 4 3.1 PESTEL Analysis 4 3.1.1 Political 4 3.1.2 Economic 5 3.1.3 Social 6 3.1.5 Technological 6 3.1.5 Environmental 7 3.1.6 Legal 7 3.2 Strategic Capability Analysis 7 3.2.1 Resources 7 3.2.2 Competences 9 3.3 SWOT 9 3.3 Stakeholder Expectations 11 4 Evaluations of Strategies 11 4.1 The Definition of Suitability 11 4.2 Suitable Strategies of IKEA 12 4.2.1 Evaluation of Business Level Strategies 12 4.2.2 Evaluation of Corporate Level Strategies 12 4.3 Unsuitable Strategies of IKEA 12 4.4 Recommendations for the Future 13 5 Conclusion 13 6 References 14 1 Introduction In the individual consumption decision-making, people usually consider several factors, such as prices, brands, quality and service. Companies can use different ways to attract them and get profits, so they should make suitable and appropriate strategies to do the business according to the external and internal environment. Otherwise, it will not achieve the business objectives successfully. The famous Swedish company IKEA is a good example that shows the importance of strategies in the development of an organization. IKEA is the world's largest furniture retailer from the early 1990s and operates in 55 countries with about 76000 employees. What’s more, IKEA has over 300 retail stores across Europe, America, Australian, Southeast Asia and Middle East.(2005) It sells a variety of Scandinavian style furniture and products like bathrooms accessories, tableware, kitchenware, microwave cookware, housewares and furniture fittings. Absolutely, IKEA is a relatively successful organization in the world. This report will describe IKEA’s main strategies, evaluate and assess the suitability of its strategies proved by its

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