Strategy has been defined by some in the business world as the creation of a unique and valuable positioning of a particular business. This involvesdiffering and varying activity sets from rival competitors. Strategic positioning allows corporations to set themselves apart from competitors because of their unique and innovative model. One suchcorporation that has reaped economic success because of strategic positioning is the IKEA Corporation.
The Swedish corporation was founded in 1943 with a mission to sell quality furniture at lowand affordable prices. This company sets itself apart from all competitors through various means. The norm for most furniture retailers is to display some of its furnishings in a showroom while storingtheir inventory in offsite warehouses located at a distance from the showroom. Unlike its competitors, IKEA stores all inventory onsite, cutting the operating costs of having a warehouse while alsoeliminating the extra cost and time involved in delivering the product to the homes of the customers. The company bases its operation on the customers themselves to select their desired furniture,physically pull the product from the shelves, transport it home, and assemble everything to the final showroom design.
Another unique and innovative concept of IKEA is their visual models. Theybase their furnishings on the size and dimension of a particular room. The furnished room is attractive to consumers because they can furnish each room in its entirety without the need for a decorator.In addition, the concept of IKEA is so unique that it is difficult to replicate by existing furniture retailers, such as City Furniture and El Dorado. Consumers know that IKEA is different. They couldeven stop by there for lunch if they wanted to, as IKEA also offers food services to even further accommodate their customers’ needs.
This company truly covers every aspect of the...