Ikea Analysis

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Introduction In this essay, the purpose is to conduct a position analysis of the IKEA Corporation. It presents the aspects of IKEA strategy that makes it a hybrid strategy. I will be looking at the company’s operations, identifies its strategic issues and challenges and analyses strategies which it has contributed to it gaining a competitive advantage. I will be also discussing and analysing how it is difficult to imitate hybrid strategy. In addition, I will be going through the dangers of a hybrid strategy and how managers can guard against them. IKEA is a privately held, international home products company, established in 1926 by its founder Ingvar Kamprad in Smaland, Sweden, that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories. IKEA is the world’s largest furniture retailer distributing its products through its retail outlets. In 2009, the chain has 301 stores in 37 countries, most of them in Europe, North America, Asia and Australia. The IKEA Group itself owns 276 stores in 25 countries and the other 37 stores are owned and run by franchisees outside the IKEA Group in 16 countries/territories. IKEA built and designed its own furniture through Swedwood, an IKEA industrial group, where they also adopted the idea of flat packages. The idea was to design products that could be packed completely flat and later reassembled by the customer. IKEA’s motto of providing “Affordable Solutions for a Better Living,” their consumer-assembled furniture allows them to decrease assembly and shipping costs because of the simplicity in packaging parts of unassembled furniture. By developing a new paradigm for furniture and house wares, IKEA continues to lead the way in home furnishings with much room for improvements and expansions. Environmental Analysis: PESTEL Analysis: Political – The Political factors that IKEA

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