Co-operative Strategy - Competitive Strategy- IKEA India

Co-operative Strategy 1
Competitive Strategy- IKEA India

Co-operative Strategy 2
Executive Summary
The role of the cooperative strategy is huge in achieving the target of the company in a
significant manner. This paper is elaborated the depth analysis of cooperative strategy by taking
consideration of the IKEA’s case study. The company is dealing in various home appliances,
kitchen products, and furniture and it is required for the company to adopt the cooperative
strategy in order to increase the revenues of the company. The decision of the company to enter
in the market of India is good as it is the second largest population country which has a largest
open economy market.

Co-operative Strategy 3
Introduction
Competitive strategy is known as the long-term strategy that helps in business to grow in an
effective manner. The main focus on the company is on a co-operative strategy in which IKEA
India Company will be taken to describe the cooperative strategy. Organizations like IKEA
focusing on the process of developing a protective location in the respective market comes under
the strategic management. It will also highlight the strength of the company in India. In order to
provide a detailed analysis of the Australian supermarket, the cooperative strategy will be
explained with strategic alliances, business level cooperative strategy, international cooperative
strategy, and corporate level cooperative strategy. IKEA is one of the prominent house furniture
manufacturer companies around the world headquartered in Sweden. The corporate structure of
the company was constructed in order to prevent any takeover as well as to protect the family
from the burden of the taxes. The discussion will be made on IKEA case study by taking various
kinds of strategy.
Background of the company
IKEA is an international company that is able to sell the home furniture products, appliances of
the kitchen and assemble furniture. It has been found that IKEA is an international company that
deals in furniture and satisfy the customers by providing them with high-quality services. The
company has 375 stores in 46 countries in which more than 172, 000 employees are working
worldwide. The company is known for its modernist design for various sorts of furniture and
appliance and it's interior design work which is relegated to eco-friendly simplicity. The
company has produced more than 9,500 products of furniture with a number of interior features.
The company has more than 1.2 billion visitors visit its websites and purchase products. The

Co-operative Strategy 4
main reason of the companies famous is operational particulars, cost control and corporate
attributes that represented IKEA to smaller its range uploaded by an average of 2% to 3% in the
time of growth of global. It has been found that the current landscape of the furniture industry is
dynamic that is why it is required for the company to look forward in the latest trend of furniture
in order to attain the momentum in the competitive market (IKEA.com, 2018).
Cooperative Strategy
The role of the cooperative strategy in the competitive market is huge as it helps in attaining the
objectives of the company in an appropriate manner. It refers to a planning strategy in which two
or more than two firms work together in order to attain the common goal of the business. There
are so many companies all over the world that applies this strategy for the purpose of increasing
the profits by cooperation with other companies that stop being competitors. It entails various
strategy such as strategic alliances, business level cooperative strategy, international cooperative
strategy, and corporate level cooperative strategy. This study is focused on its objective to
provide the alternatives of overcoming the consequences of the acquisition strategy of the
targeted company IKEA. It has been found that the strategy categorized two subsets such as
collusive strategy and strategic alliances. The role of the collusive strategy is dependent on the
working criteria of several organizations in order to eliminate the output of the industry below
the competitive level. This strategy can perceive in the organization in the form of the defensive
strategy. Strategic alliances are another subset of the cooperative strategy which increases the
position of the competition of the industry as a whole. It has been found that alliances are
typically made at the research and development stage on the basis of a different level. The
cooperative strategy has a significant role in the company as it helps in increasing the