Comparative Analysis of Ikea's Competitive Position in Various Market

Business Project

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Comparative Analysis of Ikea's Competitive Position in Various Market.................................3
Challenges Faced by Ikea while Trading across Borders...........................................................3
TASK 2............................................................................................................................................3
Tools to enhance Business..........................................................................................................3
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business is referred as an organisation which is engaged in industrial, professional and
commercial activities. Businesses are engaged in doing activities to earn profit and provide
services to customers by fulfilling their needs and requirements. Generally business is defined as
efforts and activities which are organized for producing and selling goods and services to make
profit. Often the concept of business starts with the idea may it be providing service or producing
goods to meet the demand of people present in the market (Likoko and Kini, 2017). According to
the nature of proposed business market research is done by entrepreneurs and businessman so
that they could identify whether the proposed business idea is feasible or not. In the structure of
business role and responsibilities are equally divided among the employees according to their
talent and qualification. There are different departments in the organisation which have assigned
with different functions to perform so that pre-determined objectives and goals of organisation
effectively and efficiently. Every type of business has different goals and objectives which are
already decided by the owners of business so that every resource can be aligned towards
successfully attaining those objectives (Penttinen and et. al, 2018). Every business involves
customers for them they produce products and services as per their needs and demands and
achieve competitive advantage. The current project on business assists in analysing the IKEA’s
competitive position in various markets and challenges and issues faced by IKEA while trading
across borders. The project also assists in identifying tools and techniques which help in
enhancing the business by improving the performance of employees. After this the chapter is
conclusion which summarises all the tasks and does critical analysis that assist in having clear
understanding.
Background of a chosen company
IKEA is a multinational conglomerate from Sweden which sells and designs ready to
assemble furniture, accessories of home and appliances of kitchen with other useful products and
home services that happen occasionally. The company was founded in 28th July, 1943 in Sweden
by Ingvar Kamprad who was only 17 years old at that time. In 2008 IKEA has become largest
retailer in the world. The name of the brand has made by an acronym which involves initials of
the founder and Elmtaryd and the farm where founder was born, and the name of founder’s home
town. It provides services in its almost 378 locations and operates under retail industry.

TASK 1
Comparative Analysis of Ikea's Competitive Position in Various Market
Comparative analysis is a process of comparing and contrasting two things at same time.
Ikea is known for providing superior customer services to their customers and it is one of the
most famous Company in World. The main purpose of Ikea is to customise the products
according to their consumers. They design and develop products on the basis of customer's
choice. The pricing strategy of an organisation is different from its competitors which helps in
attracting strong customer base. The business strategy of Ikea includes the main element of
pricing strategy with product design (Baraldi and Ratajczak-Mrozek, 2019). The competitors of
Ikea is Target, Amazon, Walmart, Wayfair, etc. The business concept of Company is to provide
home furnishing products at affordable price to its customers. The elements of Ikea Business
Strategy are offering low price, increasing variety of tier products, expanding business
Internationally and benefits from strategic alliances. By offering products at low cost an
organisation can gain competitive advantage by attracting consumers, generally customers get
attracted if the cost of products is low. Ikea is able to offer home furnishing products due to two
element which create a combination they are economies of scale and technological integration
which are processed in its business. The company have variety of products in its list, they serve
across 9500 products to its customers. Ikea is also focusing on creating its presence in food and
catering Industries. The organisation operates its business in more than 50 markets with 422
stores.
Porter's Five forces Analysis of Ikea in UK
Ikea is Swedish Brand which deals with home furnishing products. The main reason of
behind company's success is good quality and lower price of products. Ikea have strong market
presence and reputation which increase its growth. The Company invent new products and focus
on providing home furnishing goods as per customers experiences. Ikea is a market leader due to
its product quality and cost leadership. Porters five forces analysis is conducted to know about
the factors which could affect performance of business. It can help in planning and formulating
strategy for making business success.
Bargaining power of suppliers is low as Ikea can switch easily from one supplier to
another by which they looses business from Ikea. The company sets the rules and supplier have
to follow it. Ikea conducts various audits for checking any violation, they work according to the