Business Strategy of Ikea Thailand

Running head: BUSINES STRATEGY OF IKEA THAILAND
BUSINES STRATEGY OF IKEA THAILAND
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1BUSINES STRATEGY OF IKEA THAILAND
Executive Summary
This report is based on the detailed analysis of the ways by which Ikea operates in Thailand.
The changes that have been made in the management of the company in Thailand has also
been analysed in detail in the report. The company has used different strategies of operating
in various areas of the world. The ways by which Ikea has operated in a successful manner in
Thailand has been analysed in the report in detail. The main point of discussion in the report
is thereby based on the successful operations of Ikea in the country. The report has been
concluded by stating that Ikea has changed its style of operations in Thailand.

2BUSINES STRATEGY OF IKEA THAILAND
Table of Contents
Introduction....................................................................................................................3
Business strategy of Ikea................................................................................................3
Corporate strategy of Ikea..............................................................................................4
Acquisition and structure of Ikea...................................................................................5
International strategy of Ikea.........................................................................................8
Conclusion......................................................................................................................8
References......................................................................................................................8

3BUSINES STRATEGY OF IKEA THAILAND
Introduction
Ikea was founded in the year 1943 by Ingvar Kamprad. The company started its
operations in the industry by selling various products like, pens, picture, wallet, table runners,
jewelleries, watches and nylon stockings. The furniture based products have been introduced
in the product line of the company in the year 1953. The first store of the organization was
opened in the year 1958 in Sweden. Ikea has been able to become the largest retailer of
furniture and furniture based products in the world. The company has more than 300 stores in
greater than 35 countries of the world. The organization has opened 12 stores in the various
areas of Thailand. The contract based on the production of the company was formed in the
year 2008 which was worth 15 billion baht. The contract was signed with a furniture maker
and the supplier named SPS Group. The operations if Ikea were started in Thailand in the
year 2011.
The report is based on the analysis of the various aspects of the organization which
include, the business strategy, the corporate strategy, the acquisitions and the structure of the
company and the international strategy that has been used by Ikea in Thailand.
Business strategy of Ikea
The business strategy of Ikea is based on targeting a majority of the people who
belong to a certain country. The positioning strategy is at the heart of the entire strategy that
has been implemented by Ikea in Thailand. The products of the organization are mainly
targeted towards the young customers who are interested in stylish products offered by the
company. The operations of the company in the have been based on the limited areas of
customer service and the self-selection of the products by customers. The manufacturing
costs of the company and the modular design of the products are also a major part of the
business strategy that has been implemented by Ikea in the market of Thailand. The