Competitive Strategy IKEA In India

Running Head: Competitive strategy 1
Competitive strategy
IKEA In India

Competitive strategy
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Contents
Introduction.................................................................................................................... 3
Business strategy............................................................................................................. 4
Corporate strategy............................................................................................................ 5
International strategy........................................................................................................ 7
Conclusion................................................................................................................... 11
References................................................................................................................... 12

Competitive strategy
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Introduction
This report will show the objective of the IKEA Company in which the elaboration will be done
of three strategies. These strategies are a corporate strategy, international strategy, and business
strategy. In the context of business strategy, the report will explain the cost leadership strategy
which would be helpful to determine that in what way company can get more success. The
corporate strategy will entail the sustainability and CSR of the company so that the company can
catch the attention of the customers of India. At last, the international strategy will be described
in the context of case in which the report will describe the how IKEA will compete in India using
Five Forces analysis.

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Business strategy
Business strategy facilitates organization to attain the objectives of the company which can be
simplified by describing the long-term business planning. It is considered by the business for a
long period of action which is designed to attain a specific objective or set of objectives. The
strategy is the game plan of the management which is planned for strengthening the performance
of the enterprise. It defines how business must be organized to attain the desired objectives. It
has been discussed in the case study that the current challenges of IKEA are lack of availability
of retail space and its cost. The cost leadership strategy should be taken by the company for
making effective marketing strategy.
Cost Leadership Strategy
The cost leadership strategy is based on the porter’s generic strategies which were proposed by
Michael Porter. However, the company has adopted the indirect differentiation strategy because
of the unique way of adding the consumer of the company in the value chain. The combination
of it is included the focus strategy in which the young buyers find fashionable and stylish
household and furniture at low cost. The company has adopted this strategy and endeavoring to
provide the maximum products as per the affordability of the customers. IKEA should consider n
the organization’s engineers design low cost and modular furniture ready for meeting by
consumers instead of focusing primarily third-party manufacturer. IKEA should seek for the
suppliers who could manufacture effective subassemblies at an affordable rate and allow
Customers to assemble the products themselves. It would be beneficiary for the company to
enter in the market as this method has the ability to save the delivery costs not only for the
producers but also for the customers. It permits many manufacturers of the company to reduce