Ikea Case
Introduction International Business Assignment : IKEA case 1. What are the core competencies and end products of IKEA? How are they linked with each other?
The core competencies of IKEA are the low cost service and showroom/warehouse idea , the low cost ,in-house design (IKEA designed its own furniture) , flat packaging and the low cost suppliers of IKEA.On the contrary, the end products of IKEA were low cost , self- assembled products with a very big variety in furniture and other stuff. They are linked with each other, by the fact that if IKEA didn’t have low costs, in employees and suppliers and the innovation in its products , IKEA would not never become such a successful business.
2. How did IKEA diversify?
IKEA managed to diversify, by selling low cost products of its own design which costumers could assemble them selfs.In addition IKEA also managed to produce a big variety of products and expand to many countries.
3. How did IKEA expand internationally ? How has the firm maintained a focus on core competencies while simultaneously adapting to local needs in host countries?
IKEA expanded internationally because of their low-cost strategy. A supplier’s boycott in Sweden in the early 1950’s/1960’s forced IKEA to search for international low-cost suppliers. This network of low-cost suppliers had grown more and more, so that IKEA could open more stores in several other countries. B y reducing marketing costs and logistic costs and by using the same products and the same operational formulae (routine), the firm could maintain a focus on core competencies while simultaneously adapting to local needs in host countries.
4. Can you provide an update on IKEA’s core competencies , using materials available on the web?
Source: http://www.ikea.com
“At IKEA our vision is to create a better everyday life for the many people.
The core competencies of IKEA are the low cost service and showroom/warehouse idea , the low cost ,in-house design (IKEA designed its own furniture) , flat packaging and the low cost suppliers of IKEA.On the contrary, the end products of IKEA were low cost , self- assembled products with a very big variety in furniture and other stuff. They are linked with each other, by the fact that if IKEA didn’t have low costs, in employees and suppliers and the innovation in its products , IKEA would not never become such a successful business.
2. How did IKEA diversify?
IKEA managed to diversify, by selling low cost products of its own design which costumers could assemble them selfs.In addition IKEA also managed to produce a big variety of products and expand to many countries.
3. How did IKEA expand internationally ? How has the firm maintained a focus on core competencies while simultaneously adapting to local needs in host countries?
IKEA expanded internationally because of their low-cost strategy. A supplier’s boycott in Sweden in the early 1950’s/1960’s forced IKEA to search for international low-cost suppliers. This network of low-cost suppliers had grown more and more, so that IKEA could open more stores in several other countries. B y reducing marketing costs and logistic costs and by using the same products and the same operational formulae (routine), the firm could maintain a focus on core competencies while simultaneously adapting to local needs in host countries.
4. Can you provide an update on IKEA’s core competencies , using materials available on the web?
Source: http://www.ikea.com
“At IKEA our vision is to create a better everyday life for the many people.