Business Strategy: Analysis and Planning for IKEA

This document provides an analysis of the business strategy of IKEA, focusing on pestle analysis, VRIO analysis, resource-based view, and Porter 5 forces analysis. It explores how IKEA navigates the macro environment and internal business environment to achieve competitive advantage. The document also discusses the importance of strategic planning and innovation for IKEA's growth and success.

Business Strategy

TABLE OF CONTENT
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
Pestle analysis ( Macro environment)................................................................................................3
TASK 2.................................................................................................................................................5
VRIO analysis...................................................................................................................................5
RESOURE BASED VIEW................................................................................................................7
TASK 3.................................................................................................................................................8
Porter 5 forces analysis......................................................................................................................8
Strategic management plan..............................................................................................................10
CONCLUSION...................................................................................................................................13
REFRENCES......................................................................................................................................14

INTRODUCTION
Business strategy plays high integral role for gaining higher work growth efficacy
targets where IKEA, one of the largest brand within retail industry heading on operational
innovation with variety of products and services. The report will be analysing macro
environment and internal business environment with usage of various innovative models and
concepts, leveraging aim to bring focus on working productive dimensions. Report will study
further porter 5 force model, for generating analysis on wider domains of keen areas for goal
formulation scope horizons. The study will further develop strategic management plan with
various factors worked on for competitive goals efficacy scenarios and larger goals formed
on to evolve on larger aspects.
TASK 1
Pestle analysis ( Macro environment)
The external business environment has high influence on various paradigms of
business innovation scenarios where there are larger aspects which widely bring on
competitive goals analysed, for keeping up larger effective growth among retail industry
scenarios. IKEAS is one of the largest retail store of varied range of product and services,
ranging from house decor products and electronics. External business environment has high
competitive factors based on larger working arenas, for technical growth operational
scenarios and higher business paradigms efficacy. Pestle analysis factors can be discussed as
follows (Linder and Williander, 2017).
 Political factors: IKEAS stores are open in more than 41countries, where there are
various regulations to be taken care of, within varying political strength goals and also

to widely focus on larger competent paradigms in business scenarios. It can be also
analysed that IKEA has to focus on political stability factors for economic growth
operational innovation within business horizons, also for technical diversity where
major focus shall be given to relationships with international domains With Brexit
there has been competitive growth within exports and imports within services,
products where European countries widely bring on larger work growth aspects on
tax rates and interest rates.
 Economic factors: IKEA has been widely impacted by international laws and word
wide economy parameters where there is competitive shift within consumers
preferences, larger work growth scenarios and also among business horizons. The
varying economic rates within countries have to be analysed among higher synergy
aspects to upgrade higher functional scale aspects for revenue targets. IKEA aims to
price its products and services by keeping up higher focus on varying economic rate,
which enables to deliver quick growth parameters (Rugman and Verbeke, 2017). Social factors: The changing customers preferences within dynamic business
domains are widely shifting towards innovation and larger scale horizons where
IKEA has larger goals efficacy analysed. There are wide focus to keep active
diversion within higher scale aspects, which enhances competitive expertise and also
there is wide productive market reach among new quest horizons. Social factors boost
economical strengths within revenue targets and also for keeping innovation high for
larger growth domains, keen development aspects and with determining new creative
functional synergy which enhances goodwill parameters.
 Technological factors: IKEA has been facing wide competitive pressure from
various new brands coming on within retail industry on global parameters where
there has to be high focus for bringing on new technology, investments on new
machinery and production goals. The technology factors play high essential role for
keeping active dynamic growth synergy, where there are large operational focus build
on wider functional scope horizons to be widely analysed on keen aspects of higher
domain. The brand has been competitively heading on bringing new range of
technology scenarios for potential scope horizons to determine higher active growth
among varied domains, which keenly boosts goodwill and revenue targets widely.
IKEA aims to be widely competent and actively focused on diversion aspects by
bringing on high grade machinery for production, fastest consumers delivery which
has made it one of the widely grown brand (Teece, 2018).

 Legal factors: IKEA widely focuses on abundance of laws and regulations of varied
products and services where operational innovation and functional scenarios efficacy
has been governed on. IKEA with competitive parameters taking high pace within
business environment aims to focus on serving with best quality of products and
services, also focus on best safety measures for employees. It can be also analysed
that IKEA legally has been competitively focusing on building larger functional
goodwill, where there are higher work efficacy analysis worked on. Legal domains
are widely essential for keeping up goodwill among customers and also to yield
higher crucial focus on working new products range widely.
 Environment factors: The environment factors play high crucial role for keeping up
higher work growth innovation with varied factors of sustainable business demands
coming in, larger materials efficacy of products and also focus on bringing larger
work growth. It has been aiming to shift to natural sustainable goods of operations
such as wood, cotton to be taken on larger effective levels which enhances
sustainability aspects. It can be also productively analysed that environment factors
hold strong importance of higher productive goals diversity, where CSR activities also
play high integral role for generating competitive goodwill (Dodgson, 2018).
The above discussed factors enables us to analyse various aspects of macro
business environment which impacts IKEA widely, and how new strategies can be
build on for commercial growth synergy within higher scale growth. It has been also
competently analysed that there has been wide growth within technology aspects and
higher functional efficacy goals for keeping up retail industry competitive scenarios
widely. There has been also larger push seen for IKEA to yield strategic investments
horizons for expansion into untapped market horizons and also to competitively
evolve on larger dynamic aspects of efficacy operational targets.
TASK 2
VRIO analysis
The internal competencies play high integral role for analysing working efficiencies
within business horizons and larger work productive goal diversity among work domains,
through which leveraging focus on keeping higher efficacy aspects on longer time frame for
competitive goals development. VRIO analysis is one of the widely informative tool which

will enable analysis of IKEA business strengths within resources factors, to yield focus for
generating active goals enrichment and higher informative goals analysis.
 VALUE (Yes): The value factor is present within IKEA products and services where
it differentiates itself with other businesses based on best quality of innovation, higher
value productive technical functional growth domains and also to keep up active
technical standards. By availing value factor as an internal strength, brand has
emerged to be one of the highly competitive brand and also appealing among
consumers market (Hickman and Silva,2018).
 RARITY (Yes): IKEA also posse rarity aspects within products designs, where easy
procedures and best shopping services for customers have made it one of the globally
acclaimed brand, where operations are widely advanced and also keep up new
functional innovation actively wide. The rarity factor holds high strength for IKEA
business goals within competitive industry aspects and also based on quality, price
standards it has been widely heading on explorative domains of functional excellence.
 IMMITABILITY (NO): However, wit competitive industry there has been various
new companies and services within productive scenarios developing further where
consumers also have wide range of products before them. It has been also analyse that
with high efficacy coming on within competitive retail industry IKEA has pressure
from various brands and functional innovation developed further on which shall be
eventually worked on with strategic vision on longer term.
 ORAGNISED (Yes): IKEA has been in business for long time within retail industry
with strong presence, larger brand recognition aspects which has made it one of the
widely acclaimed company producing varied products and services. It aims to be
widely dynamic ad culturally evolving within varied goals for keeping innovation
active, larger productive promotion functional scale active on higher grounds. There
has been also competent push to be given to larger functional scale goodwill for brand
recognition where IKEA aims to yield larger goals on expansion into untapped market
operational goals.
 The above discussed factors enable us to analyse that sustained competitive advantage
has been actively focused on by IKEA, where products and services competencies
are widely advanced, also there is positive push coming on within technology growth
avenues (Hitt,, Li and Xu, 2016).

RESOURE BASED VIEW
The resource based view can be understood as managerial framework which enables
to determine strategic resources within business to be analysed for achieving higher
competitive advantage aspects and also for functional growth among competitive arenas.
Core idea of this theory is based on parameter where business environment gets niche within
market goals, by analysing strengths, threats and also looking ahead within resourceful
potential growth operational efficacy.
 This model is way of viewing firm within longer run functional plan and in turn
analysing resources for futuristic growth, where it is these resources which enable
diversified growth on longer run. IKEA resource based view aims to analyse that
brand has up scaled functional targets for competitive strengths which harnesses
profitability on longer run and also consumers goodwill. Within RBV model, there are
main 2 types of resources (assets) which will be focused on tangible resources and
intangible resources for keeping up efficacy higher.
 There is also high dynamic focus on pertaining active larger goal operational
innovation coming on within quality services among products, on which it can be
analysed to be largely active on keeping up the best intangible resources and tangible
resources. IKEA intangible resources are consumers goodwill, high expansion into
various countries scenarios and also there has been competitive focus given to larger
goals efficacy on which tangible revenue targets can be obtained widely.
 Through resource based analysis framework it can be analysed that IKEA has been
competitively active on higher keen arenas of operational innovation, larger

functional scale development among various paradigms and also the internal
resources have been widely shifting on best aspects of higher working grounds
(Johnson, 2016).
TASK 3
Porter 5 forces analysis
The internal factors of business environment can be analysed by use of Porter 5 force
analysis where there has been detailed analysis developed on various grounds of higher
efficacy scenarios and also to keep productive goals development within longer time run.
IKEA porter analysis can be understood as follows:
 Bargaining power of suppliers: IKEA has been highly growing on competitive
aspects of larger goals efficacy within products, services where brand aims to be
widely being competitive on varied arenas with its best supply chain operations. The
brand has wide variety of suppliers among various parts of world which has made it
one of the best brand within retail industry. Also the suppliers are widely extended on
varied aspects of larger work growth domains on which IKEA has been competitively
focusing on enhancing its supply chain widely for developing focus on varied aspects.
Bargaining suppliers also enable business to be widely expanded on larger scenarios
where there has been strong competency analysed, for revenue goodwill and higher
profitability goals.
 Competitive rivalry: IKEA faces high competitive rivalry among business horizons
within retail industry aspects where there are various companies and new start ups
coming on, and also digital marketing has given high push to competitive business
parameters. The competitive rivalry is strong for brand within business avenues, on
which there is active functional scale keen growth towards technology scope horizons
and also commercial competition has been developing within businesses (Kharub, and
Sharma, 2016). It has been also raising quick shift to larger efficacy aspects on keen
dynamic innovation on business horizons where consumer’s preferences are also
widely shifting within new demands. Bargaining power of buyers: IKEA faces low bargaining power form consumers
where there is negligible focus among consumers strength to impact functional

bargaining power, as IKEA revenue is no reliable merely on consumers. It can be also
analysed that with stronger retaining pricing strategies there is independent focus on
developing efficiency within new aspects of business. Also with large number of
stores there are varied scale growths within target consumers who are always focused
on gaining best qualities, even at competitive price. The brand has very low reliance
of functional standards of varied scale within bargaining power of consumers, where
it can be analysed that it works as asset for IKEA to be widely expanded onto varied
scenarios within business world. Threat of new entrants: IKEA faces moderate risk within threat of new entrants
where brand aims to serve best quality factors of products, services within consumers
market which has been analysed as one of the strength. Also there is competitive
threat of various new brands entrants within functional parameters and wider push
coming form consumers preferences, which has given keen growth competitive
shift for IKEA. Threat of new entrants within retail industry has been widely
growing where there is wider demand for new innovation, larger functional scale
growth of products range and also wider digital platforms efficacy. Threats of new
entrants has been highly strong, also essentially integral for business to focus on for
competitive excellence which enhances new scale growth within consumers
goodwill , revenue targets (Appleyard and Chesbrough, 2017).
 Threat of substitutes: The threat of substitutes can be also analysed as one of the
essential factor which is high for IKEA, where brand has been facing high shift
among consumers choices within products, services and also functional scale shift on
best innovation. With various new brands coming IKEA has been facing dynamic
shift and competitive growth among business scale functional horizons where there
are varied aspects such as strategic planning, new investments to be taken care of. The
threat of substitutes can be reduced by focusing on being unique within products
range, largely focusing ahead on best determinants of efficacy scenarios, potential
metrics growth and also build benchmarks to keep monitoring active widely.
The porter 5 forces analysisenable us to analyse and functionally focus on pertaining high
grade focus on operations of IKEA, where brand has been heading towards best products and
online services. Consumers goodwill for brand is also one of the top most asset, where it aims
to expand widely on untapped market horizons and also actively be resourceful on larger
arenas. With high competitive paradigms within retail industry there has been quick shift and

push of innovation analysed among consumer’s choices, wider advanced demands of
products where IKEA has varied business growth opportunity (Akter, Wamba and Childe,
2016).
Strategic management plan
The strategic management plan will be focusing on various aspects of IKEA future
goals goal operational efficiency and pertaining wider focus on keeping higher scale active
efficiency for technical innovation, higher revenue targets and also keenly progressing on
new consumer targets.
Vision: IKEA future business vision is based on expansion within untapped market arenas,
larger development within products and services functional growth and also for developing
working horizons shift with strategic investments.
AIM: The aim is focused on generating wider functional scale growth within new horizons;
keenly focus on best quality to be served among consumers and also actively build strength
of digital marketing avenues (Barghouthi, 2017).
SMART objectives:
 Specific: Specific focus of strategic management plan to work on analysed
weaknesses and threats where company at present is facing pressure where there is
high demand of larger productive innovation within products and services.
 Measurable: The new strategies will be measurable with various analytical tools,
higher efficacy scenarios of functional growth and larger competitive aspects which
create technical goals productive on wider paradigms.
 Attainable: The goals of optimistic growth will be based on attainable targets and
new functional scale shift for keeping up with higher growth synergy , to keep IKEA
boost its efficacy goals widely.
 Relevance factor: The Brand also has high relevance with working objectives for
strategic investments into new horizons, active growth of larger technical varied
aspects by bringing on strategic vision among larger aspects and keen diversification
among higher domains.
 Time based: The targets will be focused to be attained in period of 6 months, where al
strategic investments and new scale active growth shall be planned further.
STP:

 Segmenting: IKEA will be segmenting its customers based on various preferences,
demands efficacy and worked on basis of larger varieties which will enable business
competitive strength to be formed on varied specific aspects.
 Targeting: The targeting of customers segments will be done based on varied new
competitive growth synergy with strategic vision, high scale active focus on
diversification (Burgelman, Floyd and Whittington, 2018). Positioning: IKEA for positioning its services will aim to be active on promotion
within digital space horizons, widely focus on keen mew arenas of higher efficacy
aspects and also expand onto untapped horizons.
SWOT analysis:
 Strengths: IKEA has strength of working goodwill with best consumers services ,
quality of products and services where innovation is high and also wide presence in
large number of parts around world which has made it one of the best brand within
retail industry.
 Weaknesses: IKEA faces weakness of less technical operations and higher cost of
transactions within operational parameters which has been competently impacting
functional goodwill widely within varied space.
 Opportunities: There is larger business opportunity for business exploration with
new scale higher varieties of products and operations, yielding functional focus on
keen arenas of developed growth goals.
 Threats: There is threat of higher competition within retail industry with various new
brands and companies coming in, varied preferences within consumers market and
also to actively yield higher active shift new products range.
Porter generic strategies:
 Cost leadership strategies: IKEA by focusing on cost leadership strategies will be
enabling larger goal formulation within new arenas by keeping higher scale efficacy
on best optimised strategies, for consumer strength. Cost advantage varied aspects
within structure where economies of scale, preferential access to raw materials for
keeping up efficacy scenarios for larger goals analysed. Differentiation strategies: This strategy is based on developing dimensions where
buyers within industry scenarios widely bring on larger goals efficacy within new

premium goals, where IKEA has larger functional diversity worked on by enhancing
consumer’s preference services (Chang, 2016). Focus strategies: The focus strategies will be based on bringing dynamic working
shift on larger arenas of higher goal productive products, keen working operational
shift towards explorative determinants which will enhance working vision actively.
Ikea will be able to enter into varied paradigms of untapped business horizons by
scaling larger growth factors, higher advanced new scale active diversification and
also to enhance new larger innovation.
Lewis change management model:
The change management model will be widely focusing on bringing vision oriented
growth scenarios within business strategies, where the dynamic changes shall be build on by
keeping various parameters analysed within wider domains and to be competitively active.
 Unfreezing: At this step, all factors which needs to be changed with planning and
innovation are analysed, larger goals formed with strategic planning and investments
development through which IKEA aims to enhance its working domains
specialisation within products and services. Freezing will also motivate employees
for strengthening vision for various new changes in future, analysis developed to train
them and also keenly wok on wider efficacy aspects on larger technical grounds.
 Freezing: At this step all changes which need to be made within technology and
innovation shall be made by company for keeping up effective new scale growth at
focus, diverse aspects of active technical diversification. The above discussed
strategies will be implemented within working horizons for keeping larger dynamic
growth to be operated on varied aspects and also promote new work shift for larger
competent synergy. It can be also analysed that IKEA at this step of change
management model will be able to pertain focus on wider domains specific enlarged
competitive parameters trough which brand goodwill is enhanced.
 Refreezing: At this step the wider domains and strategies undertaken by IKEA will be
analysed, strength pertained on relative scenarios of larger work growth targets and
also monitor progression within future scope. The refreezing will enable business to
be competent widely, also potentially focus on new horizons of active innovation to
keep all strategies monitored widely (Cortimiglia,, Ghezzi and Frank., 2016).
Monitoring and controlling:

The monitoring and controlling plays high role of importance within strategic
business management plan where IKEA aims to widely work on keen growth arenas, focus
on larger work diversity within operational innovation and also keep revenue targets at check.
CONCLUSION
The report has conclude various factors of business strategy for IKEA which is one of
the widely leading retail company with major presence in large parts of world with its best
quality products range and services. Report has concluded pestle analysis of IKEA, where
various factors of macro environment have been in detail analysed for targeting larger
dynamic force. The study has also further concluded VRIO and resources based analysis
within internal business factors where IKEA has to competitively grow on strategic vision
and innovative marketing aspects. Report has further concluded porter 5 force analysis with
detailed analysis of various domains, and also the strategic management plan by working on
factors of larger working efficiency within new horizons of dynamic growth and operational
efficiency. The study has concluded in research that by heading on strategic management,
IKEA will be able to enrich higher work efficacy scenarios and productive goal efficacy.
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