Business Management and Strategic Management - Doc

Business Management and
strategic management
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Table of Contents
VRIO analysis of IKEA..................................................................................................... 3
Analysis........................................................................................................................ 3
References................................................................................................................. 6
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VRIO analysis of IKEA
VRIO TABLE FOR IKEA
Factors Valuable Rare Inimitable Organized Competitive
Implications
if Exploited
Distribution
system
Yes Yes Yes Yes Sustainable
Competitive
Advantage
Distribution
Policy
Yes Yes Yes Yes Sustainable
Competitive
Advantage
Pricing
strategy
Yes No No Yes Competitive
Parity
Innovation Yes Yes Yes Yes Sustainable
Competitive
Advantage
Inventory
management
systems
Yes No Yes Yes Sustainable
Competitive
Advantage
Shopping
experience
Yes No Yes Yes Sustainable
Competitive
Advantage
Analysis
Valuable
Yes, it allows IKEA for differentiating itself from various competitors due to an innovation of
the business model as well as value chain that permits the company to produce that type of
democratic design. The combination of the democratic design along with the cost leadership
culture helps in evaluating the desired growth of the firm to a large extent. Considering the value
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