Competitive Strategy

COMPETITIVE STRATEGY
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Table of Contents
INTRODUCTION.......................................................................................................................3
MAIN BODY...............................................................................................................................3
1.company's history, development, and growth..........................................................3
2.Identifying company’s external and internal weakness..........................................4
3.Analysing the external environment..........................................................................4
Evaluate swot analysis....................................................................................................6
Analyze corporate level strategy...................................................................................6
Analyze business level strategy....................................................................................7
Analyze structure and control systems........................................................................8
CONCLUSION...........................................................................................................................9
REFERENCES........................................................................................................................10
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INTRODUCTION
Competitive Dynamics can be defined as those actions which are being taken by
company in order to gain competitive advantage. In this company are engaged in
designing those strategies that assists them in establishing their business in new and
emerging market. Present report will lay emphasis on competitive strategy taken by
IKEA to move in India. IKEA is a furniture retail company who is been headquartered
in Germany. Present report will lay emphasis on company’s history, development and
growth. It will also lay emphasis on internal and external strength of firm. Assignment
will also provide detail about the key barriers which has been faced by them. Study
will also evaluate corporate level strategy adopted by IKEA.
MAIN BODY
1.company's history, development, and growth
IKEA is a privately held company, they are designing and selling furniture,
accessories and appliances. Company has followed complicated corporate structure
in which their main components were operations and Franchising. Operation
department was being involved in managing and designing furniture’s and
accessories. Franchising was being done by private company known as Inter-IKEA
system (Hagber and Sterner, 2019). They have a tight control over IKEA operations.
Firm has been engaged in making products according to needs and demands of
consumers and they have also made various sustainable strategy throughout its
evaluation. IKEA has brought various changes from its past corporate strategy. By
involving in changes they have been able to achieve its mission. Like for example
previously when entering into China one of the most difficult challenges which was
being faced by them included its prices. They analysed that prices of furniture made
by local stores were lower than them. So IKEA want to had access to cheaper labour
and raw materials, and because their design costs were usually nil.
They were also engaged in doing global branding of products, which did not work
out and after that IKEA focused on middle class income group who were more
educated and have knowledge about western styles. Initial products include pen,
wallet, picture products, table runners, watches, jewellery. After investing on all of this
IKEA focused on segments of furniture, they were engaged in choosing eco-friendly
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