Cooperative Strategy: IKEA India's Approach

RUNNING HEAD: Competitive Strategy
Competitive Strategy
IKEA India and Co-operative Strategy
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Competitive Strategy 1
Executive Summary
The below mentioned report provides a detailed analysis of the cooperative strategies used by the
company IKEA India. The company IKEA comes on the first position in the international
furnishing industry. The company works with an aim to increase the satisfaction level of the
customer by using the products of IKEA. Further, thy also aim to provide their products to all
types of people irrespective of their income level. The company IKEA India initiated the
cooperative strategy with their suppliers in the target market. The suppliers helped the company
to grow, increase their sales and attain goodwill as well. And on the other hand the suppliers
received good revenue and recognition from the company. Further the latter part of the report
also evaluates the dynamics present in the market in which the company sustain their actions.
More details about the report are discussed below:
Content

Competitive Strategy 2
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Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Company Background.....................................................................................................................3
Co-operative Strategy......................................................................................................................4
Use of Co-operative Strategy in IKEA India...................................................................................5
Dynamics of Target Market.............................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Competitive Strategy 3
Introduction
The purpose of this report is to enlighten the reader about the company IKEA India and co-
operative strategies used by the company in the target market. The report comprises of the
description about the company, co-operative strategy, the ways in which IKEA India utilized this
strategy and the industry specifications as well. The company IKEA has made strong position in
the market of furnishing and is famous in the international market as well. The company initiates
its activities in different parts of the world. Further, IKEA is known for the simple design of its
products and economic prices as well. Co-operative strategy refers to the strategy that helps an
organization to work with another organization in order to formulate a common goal (Balza-
Franco, et. al., 2017). Many companies apply his strategy to attain their objectives easily.
Further, more details about the report are discussed below:
Company Background
IKEA is a Swedish multinational organization that design and sells ready to assemble furniture,
home accessories and kitchen appliances to the customers in the target market. The company is
known as world’s largest furniture retailer store present in the industry. A 17-year-old boy Ingvar
Kamprad in Sweden founded the company in the year 1943. The company owns and operates
415 stores in total 49 countries. Further, it should be noted that the sales of the company IKEA is
constantly increasing and helping the company to capture the potential market as well. The
company works with a vision to create a better world by helping people with the products and
services that they serve in the target market. The idea of the company is to offer a wide range of
completely designed products to the customers in the market. These products that the company
offer can be purchased by people with lower income level as well (IKEA 2018).
Thus, it can be said that the major aim of the company is to produce products that they can offer
to any customer in the market irrespective of their income level. IKEA India is a part of the
IKEA Group that has been present in India from past 30 years. The company in India source
approx. € 315 million every year. The aim of the organization is to double the sales in next few
years to meet the global as well as Indian needs. In India, the company works with 48 suppliers
and more than 45,000 direct co-workers and 400,000 co-workers as well. The company launched