Ikea case (strategic management)

STRATEGIC MANAGEMENT
IKEA CASE STUDY

1. How has IKEA succeeded in expanding across the world using a standard range of products and a standard strategy in the home furniture and furnishingsindustry, in which divergent cultural influences are likely to be at their strongest?
The succeed of IKEA is based basically in the implementation of a high quality product at a very cheap price, givenIKEA a great competitive advantage and great profit as a consequence.
First of all, IKEA makes a selection of the appropriate target from the beginning; young people with low budget that are startingup in a new household. In fact, IKEA’s ideal costumer would be the average Canadian, as is mentioned in the text.
After this, IKEA builts up their strategy: quality home furnishing products ataffordable prices. Low prices are the cornerstone of the IKEA vision, business idea and concept. The basic thinking behind all IKEA products is that low prices make well-designed, functional homefurnishings available to everyone. After all, their vision is to create a better everyday life for the many people.

They are constantly trying to do everything a little better, a little simpler, moreefficiently and always cost-effectively. All IKEA units play an important part in creating low prices which we are then able to offer our customers.

2. Is there a limit to this expansion? Does IKEA’shistory illustrate the nature of such a limit?
In my opinion, the expansion of IKEA seems to have no limits, because this formula works perfectly in most of the countries and world areas they havestores. There are places where it couldn’t be possible, and they have to change to adapt their strategies to be competitive in these markets.
In the case of the nature of such a limit, is true theenvironment is true that is continually changing and can be a barrier to the furniture production, but at the same time IKEA could be adapting their production according with the changes and customizating...