Group 2

IKEA: A Furniture Dealer

“To Create a better everyday life for
the many people.”

Strategic Management - II
MBA07002 Adarsh Kumar
-Prof. Rohit Kumar
MBA07025 C Shruti
MBA07037 Divya Shukla
MBA07015 Anukrati Rajvanshi
MBA07047 Harshita Gupta
MBA07057 K.V.G. Aravind
Cultures & Countries
Does IKEA only represent
Sweden?
Countries Issues

Hispanics Corruption
India Competition
China Regulations
Financial Sustainability

Small-scale experiments to learn from new

technologies and markets.
Organization for eternity with In-house design
A complete furniture showroom concept Financial facts in 2016
IKEA Catalog
20% rise in profit
Hot dog strategy
Net profit: 4.2B euros
Pricing and organic growth Revenue growth: 7.4%
Supply Chain Management Revenue: 35.1b euros
 Hambrick and Fredrickson's
strategy diamond

Arena Arena:
Where will we be active?
Vehicles:
How will we get there?
Differentiators:
Staging Economic Vehicles How will we win in the market?
Logic
Staging:
What will be our speed and
sequence of moves

Differentiators Economic Logic:

How will we make our returns?
Lessons Learnt from IKEA's Business
Strategy
Planned: The Store Concept < A complete home remodeling experience >
Customers Emergent: Customized Products < Have your own regional feel at IKEA Store>

Planned: Cost Leadeship. <The Company must be not just be cheap, nor just
cheaper- but very much cheaper>
Cost
Emergent: HotDog Strategy. <Giving the IKEA experience via the digital mode>

Planned: IKEA Catalogue. <Get amazed before you even enter the store>
Competitor
Emergent: Going Online. <Giving the IKEA experience via the digital mode>
Recommendations
DIY Culture - tie up with local

vendors

Indianising the product and

shopping experience

Pricing- Attract both the

cost-sensitive and the

status-conscious