Competitive, Marketing and Operations Strategy of IKEA

This essay discusses the competitive, marketing and operations strategy of IKEA. It identifies the target market, marketing mix, and promotion methods of IKEA. It also discusses the operational strategy and its designing at IKEA. The relationship between the competitive strategy, marketing and the operational strategy of IKEA is also identified.

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Introduction
The business strategy begins with the concept of offering furniture at a competitive price
with quality design and value. The purpose of this essay is to identify the competitive strategy Of
IKEA. It discusses the marketing strategy and operations strategy at IKEA and how the strategy
supports the marketing strategy. It identifies the target market of the IKEA, the marketing mix
and promotion methods of IKEA. It discusses the operational strategy and it’s designing at
IKEA. It identifies the relationship between the competitive strategy, marketing and the
operational strategy of IKEA.
Discussion
Competitive strategy at IKEA
The biggest competitive advantage is cost-effectiveness; their main business strategy is
offering quality furniture at a price lower than its competitors. The company takes advantage of
the economies of scale and with proper integration of technology into the business operations
and process, the company has been able to keep the competitors unhappy. Another strategy
adopted by the company is increasing the various range of products. Apart from the cost-
effectiveness of the company, which is considered to be the strong base for the company’s
competitiveness, the retailer of global furniture offers a wide range of products and services to its
target customers who add to its competitive advantage (Twarowska and Kąkol 2013). The
company successfully renews its products and brings in new innovation to the range of furniture
offered to the customers. The company’s market expansion strategy has traditionally been able to
engage in market development aggressively. This has enabled the company to maintain a strong

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customer base and increase their demand for products. Each range of products is updated and
innovated consistently in order to satisfy the customers’ expectations. Successful implementation
of the competitive strategy has led to satisfied target customer and makes the competitors
unhappy (PEÑA and RICART 2015).
Marketing strategy at IKEA (Target market, marketing mix, and positioning)
Target market and Positioning strategy
IKEA targets every individual as their potential perspective. The middle and low-income
customers are mainly targeted. The company geographically targets Australia, USA, Europe, and
Asian countries. The company targets the market segments that are most passionate about
interior decorations and beautification. IKEA allows customers involvement as one of their
marketing strategies; they rely on their customers in choosing various designing products, a
collection of products, transporting and assembling the products offered by IKEA. Expanding its
marketing internationally, in the long run, is one of their positioning strategies and updating its
products with discounts helps in brand positioning (Jonsson, Rudberg and Holmberg 2013).
Marketing mix
Product: IKEA offers a wide range of furniture. The company renews its products offered from
time to time to bring in innovation and retain the customer’s demand for its products.
Price: The pricing policy of the company is extremely cost-effective. Offering the products at a
low price is the key to IKEA’s success. The company offers discounts on all the furniture’s
provided by them in order to retain customer demand.

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Place: As mentioned earlier, IKEA has opened its retail stores in countries like UK, Australia,
USA, Europe, and Asia.
Promotion: The promotion technique of IKEA mainly emphasizes on “style without expense”.
It offers discounts to retain customer interest. It promotes its brand name to gain the attention of
the community (Jonsson, Rudberg and Holmberg 2013).
Operations strategy at IKEA
The operations strategy of IKEA includes arranging the layout of the retail store which
enables customers to give smooth and easy access to the products offered. The products are
designed in a stylish way with efficient packing. The location of the store is appropriate in
effective places the strategies are developed so as to arrange delivery of products in the
customer’s location. The strategy is developed to makes changes according to the changing
needs and requirements of the organization. Enhancement of the quality of service to customers
is a part of the operational strategy. The strategy must be implemented to avoid any failures,
maintaining cleanliness and safety of the retail stores (Jonsson, Rudberg and Holmberg 2013).
The strategy has adopted the change in the operations of the company according to the changing
demands of the customers. The strategy is designed in a manner which enables the staff to
contribute towards the success of the company. Inventory is managed is a way which keeps a
record of the stocks in the store and requirements of the customers. The company enhances its
improvement in operations by giving adequate concentration to the examining and bringing
improvements in the practice of operation (Blenko et al. 2014).

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Relationships between competitive, marketing and operations strategy
IKEA has been successfully able to provide furniture at a cost-effective price, the
company enabled flat packed furniture which helps in saving space in the retail stores and the
customers can easily access and view the products. According to the marketing strategy, the
company offers a wide range of products to its customers to meet the demands and the
requirements of the customers. This helps the company to retain the old customers and acquire
new customers (Leavy 2014). The company updates its products with proper integration of
technology which enables the company to strengthen the customer base. This acts as a
competitive advantage for the company. The company offers discounts to increase their
customer. Hence, the marketing strategies of the company are associated with its competitive
strategy. They further enhance their service, expanding their company internationally; enabling
the staff to contribute towards the success of the organization, keeping a record on the stocks and
inventory to achieve customer satisfaction are also some of the strategies which bring
competitive advantage to the company (Jonsson, Rudberg and Holmberg 2013).
Conclusion
Therefore from the above analysis, it can be concluded that the marketing, operational
and competitive strategies have brought success to the organization. The company has a unique
approach to customer satisfaction. The demand of the customers remains intact in the company.
Further, the business strategies applied by the organization mainly its pricing policy is
considered to be very successful as it has enables the company to attract new customers, retain
old customers and increase in the demand for the products offered by IKEA. However, price
effectiveness is not a long term marketing policy; it needs to update its products to expand its
business.

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Reference
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