Strategic Management Ikea Case Study
Strategic Management
IKEA Case Study
Table of Contents
Introduction Page 3
IKEA Strategy Description: Porter’s Generic Strategy Options Page 4
IKEA Strategy Description: Ansoff Matrix Page 7
IKEA Strategy Evaluation: Suitability Page 9
IKEA Strategy Evaluation: Porter’s 5 Forces Page 9
IKEA Strategy Evaluation: Capabilities Page 11
IKEA Strategy Evaluation: SWOT-Analysis Page 12
Stakeholder Expectations: Page 14
Conclusion: Page 15
References: Page 16
Introduction
IKEA has been one of Europe’s greatest recent success stories. Founded by a Swede of German origin in the 1940’s, the company has grown to become one of the largest and most profitable corporations in the world, and elevated its founder to the rank of being one of the richest human beings in the world (Forbes Magazine, 2006).
IKEA came to the United Kingdom during a time of great expansion for the company – the 1980’s. Initially only operating one store, the furniture giant now operates 18 within the region, with a UK revenue of £1.15 billion in 2011 (Cripps, 2012; BBC News, 2012). IKEA is now the most popular furniture store in the UK, and has achieved phenomenal growth throughout the European continent – it is estimated that 1 in 10 Europeans are now conceived in an IKEA bed (Rohrer, 2005).
In this case study, IKEA’s business level strategy in the UK market will be described and evaluated.
A business level strategy refers to how a company intends to compete and sustain competitive advantage over its rivals in an industry, whilst a corporate level strategy refers to a far broader outlook such as whether a company should be operating in a given industry in the first place (Johnson et al, 2011). Only IKEA’s business level strategy for the UK will be analyzed in this work, a detailed description of which will be achieved through Porter’s Generic Strategy Options and the Ansoff Matrix. Through the Generic Strategy Options, IKEA’s corporate
IKEA Case Study
Table of Contents
Introduction Page 3
IKEA Strategy Description: Porter’s Generic Strategy Options Page 4
IKEA Strategy Description: Ansoff Matrix Page 7
IKEA Strategy Evaluation: Suitability Page 9
IKEA Strategy Evaluation: Porter’s 5 Forces Page 9
IKEA Strategy Evaluation: Capabilities Page 11
IKEA Strategy Evaluation: SWOT-Analysis Page 12
Stakeholder Expectations: Page 14
Conclusion: Page 15
References: Page 16
Introduction
IKEA has been one of Europe’s greatest recent success stories. Founded by a Swede of German origin in the 1940’s, the company has grown to become one of the largest and most profitable corporations in the world, and elevated its founder to the rank of being one of the richest human beings in the world (Forbes Magazine, 2006).
IKEA came to the United Kingdom during a time of great expansion for the company – the 1980’s. Initially only operating one store, the furniture giant now operates 18 within the region, with a UK revenue of £1.15 billion in 2011 (Cripps, 2012; BBC News, 2012). IKEA is now the most popular furniture store in the UK, and has achieved phenomenal growth throughout the European continent – it is estimated that 1 in 10 Europeans are now conceived in an IKEA bed (Rohrer, 2005).
In this case study, IKEA’s business level strategy in the UK market will be described and evaluated.
A business level strategy refers to how a company intends to compete and sustain competitive advantage over its rivals in an industry, whilst a corporate level strategy refers to a far broader outlook such as whether a company should be operating in a given industry in the first place (Johnson et al, 2011). Only IKEA’s business level strategy for the UK will be analyzed in this work, a detailed description of which will be achieved through Porter’s Generic Strategy Options and the Ansoff Matrix. Through the Generic Strategy Options, IKEA’s corporate
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