Competitive, Marketing and Operations Strategy of IKEA

Running head: SHAPING BUSINESS OPPORTUNITY
SHAPING BUSINESS OPPORTUNITY
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SHAPING BUSINESS OPPORTUNITY
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.