Strategic Management and Ikea
"Ikea: How The Swedish Retailer Became A Global Cult Brand
IKEA is a well-known global brand with hundreds of stores across the world. In order to improve performance, it must assess its external and competitive environment which will reveal the key opportunities to analyze there advantages and threats. IKEA responds to both internal and external issues in a proactive and dynamic manner by using its strengths and reducing its weaknesses. This helps IKEA to retain its strong identity in market. IKEA’s passion combines design, low prices, economical use of resources, and responsibility for people and the environment. IKEA believes that there is no compromise between doing good business and being a good business. It aims to go beyond profitability and reputation. IKEA is intent on becoming a leading example in developing a sustainable business. This will create a better everyday life for its customers. IKEA has discovered a business truth – being sustainable and responsible is not just good for customers but it is also good for the business. 1
Table of Contents 2
1.0. Introduction 3
2.0. Identify Critical Issues 4
3.0. Analysis of the External and Internal Analysis 5
3.1. External Environment 5
3.1.1 Macro Environment 5
3.1.1. (a) .PESTEL Analysis 5
3.1.2 Micro Environment 6
3.1.2. (b) Strategic Drivers Model 6
3.1.3. Industry Environment 7
3.1.3. (b) Strategic Grouping 7
3.2. Internal Analysis 8
3.2.1.(a) SWOT Analysis 8
Strengths: 8
3.2.1. (b) Value Chain Analysis 10
4.0. Identifying Strategic Capabilities 11
4.1. Resources 11
4.2. Core Competencies 11
4.3. Dynamic Capability 11
5.0. Conclusion 12
6.0. References 13
7.0. Appendices 14
1.0. Introduction
The purpose of this assignment is to identify the critical issues from the given case study about “IKEA - how the Swedish retailer became a global cult brand”. This was an abridge version of the article from Business Week Online issued on 14th November 2005, in Helsinborg - Sweden. IKEA is
IKEA is a well-known global brand with hundreds of stores across the world. In order to improve performance, it must assess its external and competitive environment which will reveal the key opportunities to analyze there advantages and threats. IKEA responds to both internal and external issues in a proactive and dynamic manner by using its strengths and reducing its weaknesses. This helps IKEA to retain its strong identity in market. IKEA’s passion combines design, low prices, economical use of resources, and responsibility for people and the environment. IKEA believes that there is no compromise between doing good business and being a good business. It aims to go beyond profitability and reputation. IKEA is intent on becoming a leading example in developing a sustainable business. This will create a better everyday life for its customers. IKEA has discovered a business truth – being sustainable and responsible is not just good for customers but it is also good for the business. 1
Table of Contents 2
1.0. Introduction 3
2.0. Identify Critical Issues 4
3.0. Analysis of the External and Internal Analysis 5
3.1. External Environment 5
3.1.1 Macro Environment 5
3.1.1. (a) .PESTEL Analysis 5
3.1.2 Micro Environment 6
3.1.2. (b) Strategic Drivers Model 6
3.1.3. Industry Environment 7
3.1.3. (b) Strategic Grouping 7
3.2. Internal Analysis 8
3.2.1.(a) SWOT Analysis 8
Strengths: 8
3.2.1. (b) Value Chain Analysis 10
4.0. Identifying Strategic Capabilities 11
4.1. Resources 11
4.2. Core Competencies 11
4.3. Dynamic Capability 11
5.0. Conclusion 12
6.0. References 13
7.0. Appendices 14
1.0. Introduction
The purpose of this assignment is to identify the critical issues from the given case study about “IKEA - how the Swedish retailer became a global cult brand”. This was an abridge version of the article from Business Week Online issued on 14th November 2005, in Helsinborg - Sweden. IKEA is
References: A.Thompson, A. S. (2001). Strategic Managemen:concept and cases. New York: McGraw. Aaker, David A. (2005). Strategic Market Management (7th.ed). New York: John Wiley Charles W.L Hill, G Danny Samson, R. D. (2005). Fundamental of Management . south Melbourne Victoria: Dryden. Hubbard, G. (2008). Stategic Management:Thinking,Analysis,Action. PEST Analysis. (2000). Retrieved from What is PEST Analysis: http://marketingteacher.com/Lessons/lesson_PEST.htm Wikimedia Foundation, I Wikimedia Foundation, I. (n.d.). SWOT Analysis . Retrieved August 17, 2010, from Wikipedia: http://en.wikipedia.org/wiki/SWOT_analysis IKEA Lane, G. (2007). Failed Business in Japan. Japan.Inc. Magazine No.73, Sep 17, 2007. Retrieved August 17, 2010, from http://www.japaninc.com/mgz_sep-oct_2007_issue_failed-businesses 7.0