You are on page 1of 1

 Ikea uses the Resource Based model of above average returns

 The firm’s resources and capabilities are unique, difficult to imitate, and without close
substitutes that competitors can adopt, creating a competitive advantage.
 Low priced products using mass production and technological integration into manufacture
 Wide variety of products available - 12000 products in the current IKEA portfolio and
launching approximately 2,500 new products every year
 Low Logistics Cost - works on ready to assemble furniture significantly decreasing
the logistic cost.
 High product quality and excellent service – Some products are attached guarantee
up to 25 years

You might also like