Discussion on IKEA's Generic Strategies and Competitive Advantage

This discussion board post analyzes the generic strategies employed by IKEA. The post examines IKEA's application of cost leadership, differentiation, and focus strategies, drawing on the company's history and business model. It highlights how IKEA leverages cost leadership to offer affordable products and differentiation to create a unique shopping experience. The post also touches on the focus strategy, emphasizing how IKEA targets a broad market. The analysis is supported by academic references, demonstrating a scholarly approach. The conclusion recommends that IKEA should primarily focus on cost leadership while also integrating differentiation strategies. This assignment is a student's response to a discussion prompt, adhering to academic integrity and netiquette guidelines.

Task 1 - Group Discussion - Discuss the
Generic Strategy of IKEA

Table of Contents
INTRODUCTION...........................................................................................................................1
Generic strategies used by IKEA.....................................................................................................1
CONCLUSION & RECOMMENDATIONS..................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Porter's generic strategies model consist of three basic strategic options available for
business organisations that helps in gaining competitive advantage (Definition of 'Generic
Strategies', 2020).
IKEA is a global conglomerate that designs, develops and sell kitchen appliances,
furniture and home accessories, and founded in 1943 with its headquartering in Deft,
Netherlands.
This paper covers suitable strategies from porter's generic strategies based on both short
and long terms objectives of the organization, used by IKEA
Generic strategies used by IKEA
Porter's generic strategies describe how business firms can pursue competitive advantages
within the market. Porter gives two ways one is lowering the cots or to differentiate its product
and services from competitors.
Cost leadership: IKEA mainly focuses on cost leadership strategy in order to save delivery cost
for both customers as well as producers. In term of respective organisation cost leadership helps
the firm's manufacturer to reduce its costs so as to attract customers through offering them
effective quality of goods at lower prices. This helps to gain sales volume of firm (Bolisani and
Bratianu, 2018).
Differentiate: On the other side IKEA also focuses on differentiate strategy which is based on
innovating the way people buy furniture. Stores of IKEA are build in unique way that offer
variety of choices for customers as suggest them to compare their products from other
players/organizations. This helps to take competitive advantage for IKEA.

Focus: With reference to IKEA focus strategy, it is based on low cost. which It helps the firm
IKEA in order to receive a broad market and easily win the market (Cavaleri and Shabana,
2018).
CONCLUSION & RECOMMENDATIONS
Although, from the above analysis it is recommended that IKEA should focus on cost
leadership strategy majorly and then focus on differentiate generic strategy. Both are beneficial
for the organization in terms of gaining competitively effective position as well as rising
customers’ base.

REFERENCES
Books and Journals
Bolisani, E. and Bratianu, C., 2018. Generic knowledge strategies. In Emergent Knowledge
Strategies (pp. 147-174). Springer, Cham.
Cavaleri, S. and Shabana, K., 2018. Rethinking sustainability strategies. Journal of Strategy and
Management.
Online
Definition of 'Generic Strategies'. 2020. [Online] Available through
<https://economictimes.indiatimes.com/definition/generic-strategies>/.