Strategic Management - Ikea

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2013-2 Fall Semester Strategic Management: Case Project IKEA - Will IKEA succeed in Korea?- Group 52006120373 | Jin-Myung, Kang | 2008120054 | Wan, Choi | 20102504172010120036 | Jeong-Min, YeaYoon-Hee, Ko | 2011120416 C | Curtis, Cambou | Table of Contents 0. Executive Summary ……………………………………………………………………. 3 1. Company Introduction ……………………………………………………………… 3 - 5 Background 2-1 Mission 2-2 Vision 2-3 Objectives 2-4 Global financial performance 2. IKEA Strategy………………………………………………………………………... 5 - 8 3-5 Corporate strategy 3-6 Business strategy 3. External Environment....…………………………………………………………… 8 - 11 4-7 5-Forces model 4-8 Korean furniture market 4. Internal Environment....…………………………………………………………... 11 - 12 Value chain analysis 5. SWOT analysis....…………………………………………………………………………. 13 - 14 6. Main Target....…………………………………………………………………………….. .14 - 16 IKEA’s sweet spot Propitious niche Prospect of future 7. Recommendation....……………………………………………………………………….. 16 - 18 Maintaining core competency Strategic alliance Online mall Marketing 8. Reference …………………………………………………………………………… 19 - 20 0. Executive Summary IKEA is the No.1 furniture company in the world founded by Ingvar Kamprad in 1943. From September 2012 to August 2013, total sales amounted to €29.2 billion and it had a total of 345 stores in 42 countries as of August 31, 2013.1 Now, this powerful, giant furniture company decided to enter the Korean market in 2012. IKEA got a permission to build a store in Gwangmyeong and this store will be completed in end of the next year. There is a controversy whether IKEA will succeed in Korea or not. This paper will deal with this issue: Will IKEA succeed in Korean market? If yes, how IKEA compete in Korean market effectively? This paper will answer

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