|
|
|
Featured Papers from Rad Essays |
|
|
|
|
This is only a preview of the paper
Click here to register and get the full text.
Existing members click here to login
|
|
|
...
The following factors provide a sustainable competitive (firm-specific) advantage for IKEA.
First, IKEA is able to take advantage of economies of scale and forwards the reduced production costs to the consumers by selling their products at lower prices (cost leadership). At the same time, IKEA maintains a high quality of their products. ...
Moreover IKEA’s self-assembling furniture strategy not only resulted in product differentiation and a broad range of products, but moreover having been the first one to do so, it also gave the company the important First-Mover-Advantages and the chance to tie up (exclusive IKEA) suppliers, establish brand loyalty before their competitors etc.
In addition IKEA applies similar marketing strategies for different countries using a consistent and uniform corporate image all over the world.
Besides these more influential FSA’s, IKEA also profits from their well designed, high functionality furniture with its attractive but yet simple design, reaching a multitude of different consumer groups.
Furthermore, the company was able to establish shopping at IKEA as a unique and entertaining shopping experience (playground for kids, food courts etc. ...
A Scandinavian company, IKEA profited from increasing popularity of Scandinavian design in the 60’s and 70’s.
Also its regional position in northern central Europe not only gave IKEA an advantageous position for further expansion into central Europe (Switzerland, Germany), but also only little or no trade barriers at all in the EU made an extension much easier. ...
Therefore IKEA was able to link specific positive associations of Sweden, such as Swedish design and tradition, environmental protection and closeness to nature and underlined this perception by using country specific logos (moose, flag colors in logo…).
With production initially restricted to Sweden, IKEA used local expertise in mechanical engineering to manufacture high quality products and took advantage of low prices for regional raw materials (wood) to reduce costs and thereby increased its competitive advantage.
Approximate Word count = 1456
Approximate Pages = 5.8
(250 words per page double spaced)
|
|
|
|
|
|