Ikea's Strategies: Business Model, Corporate Growth in Thailand

This report provides an analysis of the strategies implemented by Ikea, focusing on its business and corporate approaches in the Thailand market. Established in 1943 by Ingvar Kamprad, Ikea initially sold various products before introducing furniture in 1953. The company's core concept revolves around providing affordable home furniture by combining design, quality, and sustainability. Ikea's corporate strategy in Thailand involves joint ventures with local companies like Siam Future Development and Ikano, adapting to the local culture. The company's acquisition process focuses on acquiring land for store construction, and its unique organizational structure provides significant growth opportunities. The analysis concludes that Ikea has successfully created a sustainable competitive position in the market through its business strategies, corporate strategies, and acquisitions, leading to profitable operations in Thailand. Desklib offers a wide range of study tools and solved assignments for students.

Analysis of strategies implemented
by ikea

Introduction
Ikea was established in the year
1943 by Ingvar Kamprad. The
organization 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 (Stacey and Mowles 2016).

Business strategy of Ikea
The main concept of the organization is
based on providing the range of the
home furniture related products which
are affordable for many people. The
vision of the company has been
achieved by the combination of the
functions, design, quality and the value
that is held by the sustainability of Ikea.
The concept and the strategy of Ikea is
present in all the parts of the company
which include, the designing, sourcing,
distributing and packing (Theriou 2015).

Corporate strategy of Ikea
The first part of the corporate strategy implemented by
Ikea in Thailand is related to the joint ventures that have been formed
with the local companies. The second part of the corporate strategy is
based on the ways by which the company aims at suiting with the local
culture of the area where Ikea has its operations (Trigeorgis and Reuer
2017).

Acquisition and structure of
Ikea
Ikea has joined its operations in Thailand is Siam Future Development
and Ikano. The two companies will own 49% of the total share in the
market in Thailand. The major part of acquisition process of Ikea in
Thailand is related to the ways by which the company needs to acquire
land in various areas for the purpose of building their stores. The
organizational structure that has been implemented by Ikea has been
quite unique in nature. The structure of the company has been able to
provide huge opportunities for growth to Ikea (Wheelen et al. 2017).

Conclusion
The analysis can be concluded by stating that Ikea has been able to
create a sustainable competitive position in the market with the help of
its business strategies, corporate strategies and the acquisitions that
have been made in the market in a successful manner. This has helped
the company to create profitable operations in Thailand.

References
• Stacey, R. and Mowles, C., 2016. Strategic management and
organisational dynamics: The challenge of complexity to ways of
thinking about organisations.
• Theriou, N.G., 2015. Strategic Management Process and the
Importance of Structured Formality, Financial and Non-Financial
Information.
European Research Studies,
18(2), p.3.
• Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic
management.
Strategic Management Journal,
38(1), pp.42-63.
• Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E.,
2017.
Strategic management and business policy. pearson.