In this jeopardised business environment, organisations are constantly struggling to stable their business environment. Business strategy is applied here as the firm’s working plan, which is required to achieve the success as well as prioritise the objectives. Through application of this organisations can optimise the financial performance and maximise profit. IKEA is a Swedish based multinational group who designs and sells ready-to-assemble furniture. The current business strategies of IKEA as follows:-
IKEA business strategies are primarily based on the IKEA concept of product. The organisation has achieved maximum success through combining quality, function, value as well as design. In these components, sustainability is the basic and ultimate ideology at all levels. The organisation offering lowest prices through cost effectiveness strategy. Through combining technological integration in the business process, they are capable to facilitate this cost effective business. The organisation has also increased greater range of products based on the changed perception of consumers. This step depicts the consumer driven business process of the IKEA. The organisation also prioritises the international market expansion strategy. As per the current report, the home improvement and furnishing change is engaged with the new market development in aggressive manner. The organisation has 340 stores in 28 markets worldwide. The organisation not has stores in some countries.
As per the report, IKEA employs 1636000 people globally and they have created products, which are nicely designed. The organisation has prioritised (businesscasestudies.co.uk, 2018). The IKEA strategy is to design and develop products based on the consumer need every day. In 2012, the organisation has launched People and Planet Positive sustainability strategy, which sets the organisational approach for adjusting with the social as well as environmental impact. It has been also reported that, IKEA is one of the largest purchaser. The organisational authority works with 21 foresters for ensuring that all the products and raw materials have compliance with the sustainable forestry standard. The organisation is using over 30% sources from the sustainable sources. The organisational strategy is also aimed at the co-workers. For instance, IKEA has included diversity and inclusion strategy for including the half of the women in the management position. The organisation encourages employees to participate in the community involvement activities (theguardian.com, 2018). The CSR or corporate social responsibilities are also important for the organisation. As per the report, the organisation has standard initiatives for empowering the women based on the support of education, improved healthcare and skills training. Their projects have already benefitted 100 million children. In this case, the organisation has developed maximised focus on the production strategy, where IKEA HAS prioritised the consumer need. IKEA gives big volume in sales along with long term profit fir both owners and the suppliers.
It is evident that globalisation is the primary trend for most of the companies. IKEA develops their marketing strategies to gain maximum market share in the new countries. For instance, IKEA globalisation strategy in China, Asia, and other is comprised of localisation, joint venture and pricing strategies. In order to adjust with the different country policies, culture and the environment the organisation has modified their corporate strategies. The organisation has adapted localisation strategy for suiting with local culture of the other countries. The structured managerial and work culture has fostered long-term success.
IKEA has made their first ever acquisition with the outside group of companies through aligned with the TaskRabbit, which is US online marketplace. From the viewpoint of CEO, this acquisition strategy spells a new way for lid on cost as per the necessity of the market transform. Previously, the organisation shields away them from the acquisition. However, in the later period due to advancement of e-commerce and increased urbanisation, they have decided to take acquisition in the business model and doing business with the Task Rabbit, A San Francisco based start-up.
IKEA trades from 315 stores in the 27 countries and think that they can double the sale to about 36 billion pound by 2020. The organisation has prioritised the Ansoff matrices based on the field of sales growth in the existing stores and new marker development. The organisation has applied it as market penetration strategy, where they offers cost effective and quality products, foe filling consumers demand. In case of China, the organisation has applied strategy of localisation, which has tailored the marketing mix for the local consumers. These strategies are effective for maximising the sales.
By 2020, the organisation IKEA has planned to increase their sales into double rate than the earlier. The organisation has also planned to introduce renewable sources, which can produce more energy but cost efficient. The organisation is now working effectively to inspire million of consumers through providing the innovative product. The organisation will consider further acquisition for adding the services with the technologies. Through this the organisation can maintain their competitive business strategies. It has been visualised that the organisation has prioritised the CSR strategies for maintaining goodwill within the community. The organisation will take more initiatives by 2020 to foster community based programs, which are run by the UNICEF. The organisation needs a technology based improvement and organisation now trying to invest more dollars in storage, shipping and recycling. The organisation is now trying to improve their supply chain management process in cost efficient manner to deliver best pricing products. As per the current report, the IKEA is transforming into a fully fledged tech company for increasing accessibility and procedures of the services. The organisation will now starting with the new Apple and Amazon partnership. As per the current report, IKEA’s vision, cutting edge technologies has played significant role in the digital sales channel. The organ8isation wioll now improve this area to take one stapes front from the competitors like Alibaba, Argos, Ashley Furniture, Rooms to Go, Tesco, WallMart and others. The organization wills now involve more empowerment initiatives in the workplace for fostering more significant success by means of productivity. The organization will improve their market penetration strategies through modifying the existing products, which will be done based on the consumer driven approach.
IKEA is a Swedish based multinational group and part of the retail industry. They are selling ready to assemble furniture, home accessories and kitchen appliances. Sweden is known as being passionate customer. Customers are spending 40% of their disposable income in the shops, where retailers can get positive opportunity. Retail sales have been grown annually every year for two decades. As per the current report, steady population growth, rising income and robust economy can create low risk environment. In this country, retail industries have got maximum profit support due to low risk environment (ikea.com, 2018). Retailer term is applied to distribute
IKEA is stepping up the efforts for improving the quality of their products and also in pare cost. The organisation are meeting the shopper’s expectation but increasing demand of more durable product creating issue for the varietyorganisation (economictimes.indiatimes.com, 2018). As per the current report, online retailers have been grown, where Amazon, Zara, Ashley Furniture are on the news.
IKEA has focused on the core competencies through sustaining the profitability. It has been maintained through low-cost business model. Being a low cost leader, the organisation has included sourcing, design as well as operational expenses. Through this the organisation has gained positive consumer support. The brand recognition have been established through such competencies.
In this case the organisation has standard performance due to strong focus on cost leadership. However, they are creating issues to communicate and articulate with the environmental policies.
The analytical framework will play a pivotal role in the assistance of the business activities that would be utilised for the creation of the value based data. This analytical framework will be beneficial for the company IKEA as it would be beneficial for the growth of the company. The value based chain analysis will be utilised for the company to gain an advantage on the process of the company. This value based analysis will help in the growth of the competitive advantage of the company. The manufacture and the delivery of the various products and services is a significant link that would add to the value of the product or the service. This is used by a number of business organizations to gain objectives mission and vision of the company (economictimes.indiatimes.com, 2018). The value chain plays a very important role in determining the value of the product and services that are manufactured by the logistic department of the company. The value based chain has been initiated for the furniture company IKEA. It has shown the value of the products and the services that are sold and manufactured in the company. Therefore, the value based chain is a very important link for the sale of the products and the services.
project management assignment help, business management assignment help, business management assignment, management assignment help services, strategic management assignment help, management accounting assignment, management homework help, marketing management assignment help, humnan resource assignment help, human resource management assignment help, managerial accouting assignment help, management accounting assignment