IKEA STRATEGIC DIRECTIONS
ADVANTAGE Economy of scale Strong management Strong financial DISADVANTAGE IKEA is a very successful multinational corporation, which indicates that earlier discussed focused generic, or long-term strategy of cost leadership and product differentiation has served it well. The IKEA concept is unique and over twenty years of international operations have not triggered any direct international rivalry. The recommendations in this section are designed as to explore possible avenues of further developing IKEA's competitive base and prepare the firm for possible demographic shifts that may reduce the size of its target market segment. At the moment IKEA is leader in the furniture market and is not fully exploited up its capacity so there is huge potential expanding further. In my idea IKEA does n need to diversify at this time and the reason is although it is riskier to go new marker and new product (to diversify) may be in the good option that IKEA to go. I can see there is reasonable chance to diversify. For example, going electrical appliances, food industry the logical reason that I am going diversification IKEA has established supply chain and big stores which easily can accommodate. So, I could say this rated diversification as going this direction may not add complete unrelated diversification. IKEA’s success is based on principal marketing strategies that remain the same throughout the world, which include a catalogue that is printed in 17 languages, for 28 countries and the use of the colours of the Swedish flag blue and yellow in the IKEA logo. This is combined with an emphasis on customer freedom and choice with regard to buying and taking home products, and low prices intended to create a “sale” mentality amongst customers.