Ikea's Corporate And Business Strategy Of IKEA

University of Business and Technology

IKEA Case Study Analysis
OPM511

By: Sarah Alshimmary
PAM164
Nada Alsallum
PBM095

To: Dr. Mahmood Ali

i. Introduction
In 1943 an internationally known home furnishing retailer known as IKEA comes to live and it has grown rapidly since then. Now it is considered to be the world's largest furniture retailer. IKEA's furniture is famous of the flat-pack that is ready to be assembled by the end user. IKEA have a range of around 9,550 products. Around the world IKEA company had around 253 stores in 30 different countries (August 2008). Around 32 stores are owned by franchisees. At all stores, customers wide range of products that are available. However, customers can buy much more of the products

From the research I did online, it argues that IKEA’s corporate and business level strategy is applied in a good manner. By asking how these strategies are best supported by operations strategies of IKEA. Assessing those performance goals are raising the quality, speed, dependability, flexibility and cost, which effect on the effectiveness of the results. Although all furniture retailer operations may be alike in that they all transform input resources into output products and services, they do differ in four important respects -namely the volume of their outputs, the variety of the outputs, the variation in demand for their output, as well as the degree of conspicuousness or customer contact that they have. From many traditional furniture retailers IKEAs success in the retail industry can be credited to its massive knowledge and skills in the retail market, product differentiation and cost leadership as

With a variety of options customers can choose what they need in their closet with the perfect measurements that fit their space. This service also includes kitchens and office furniture.
Q4: Suggest three strategies for operations improvements.
Operational improvement is often a fundamental requirement and continuous effort for any organization that wishes to succeed in today’s environment of change and challenge.
Forecasting:
In the operations of day to day transactions forecasting can be a tool for capacity planning, timings, and insuring quality. IKEA can use this strategy to forecast the number of customers and the orders. By knowing approximately how many people will come to store today and how many of them will purchase some products from IKEA, it can manage its employee shifts and efforts, storage capacity and more.
Using technology to improve the operations:
IKEA can manage the cost and reduce it with using technology such as web-based software that will allow IKEA to radically develop their business and processes. It ranges from spreadsheets to off-the-shelf software solutions that help in production management tools or operation management and custom-developed applications.
Create effective business processes with partners or