Ikea

WILL IKEA´S SUCCESSFUL STRATEGY UP TO NOW LEAD TO SIMILAR SUCCESS IN THE FUTURE IN THE UK?
JUSTIFY WITH PORTER´S THREE GENEREX STRATEGIES AND BOWMAN´S STRATEGY CLOCK.
IKEA is a Dutch multinationalcorporation of Swedish origin dedicated to the retail sale of furniture and household items and decor, low price and contemporary design.
In recent years, Ikea has positioned itself as the largestfurniture company in the world. How Ikea has managed that? What business model has ikea used?
Ikea's success is that it has managed to position itself in the niche market in a range intermediatebetween the high and low and differentiate their offerings, providing a unique, difficult to copy
Ikea has also done something that few companies achieve, which is to continue adding value to theirproducts while still lowering prices.
If we consider the three strategies of Michael Porter, we have:
- Cost leadership: the company intends to be the producer with the lowest cost industry
-Differentiation strategy the company seeks to be unique in its product offerings in industry, so that customers apply the value.
- Focusing or Market scope: seeking a cost advantage or an advantage in nudiferencicion narrow segment.
I think that ikea, makes a mix betwen cost-leadership and differentiantion of product (Ikea has more of lowest price strategy) . The Bowman´s strategy clock offers us a newposibility. Because in there we can find 8 strategys, and one of those is the Hybrid strategy, which combines a Low price with a high added value, and it´s appropriate fos the Ikea case.
UK is thethird biggest spender in ikea , and if we were in an era of expansion, maybe people would prefer a exclusive products but now, both Europe and the United States, (at least) we are in a state ofeconomic crisis. In the coming years people will not spend much money, and Ikea offers products for little money
I think in the future Ikea will expand even more so, since the state will benefit from...