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The Competitive Environment Of IKEA

1315 Words6 Pages

Q1)
Today’s organizations have to deal with dynamic and uncertain environments. In order to be successful, organizations must be strategically aware. They must understand how changes in their competitive environment are unfolding. They should actively look for opportunities to exploit their strategic abilities, adapt and seek improvements in every area of the business, building on awareness and understanding of current strategies and successes. Organization must be able to act quickly in response to opportunities and barriers. Managers operating in organization perform a number of activities including planning and organizing the work of their employees, motivating them, controlling what happens and evaluating results. Decisions by managers …show more content…

The value of resources and capabilities is important to any business to have sustainable competitive advantage. For IKEA resources and capabilities added value the company in different shapes such as: the company simple design, eco friendly, formats that suit many purposes, new business models, flexible& immediate, commerce standards, excellent service, customer relations system, respect to environment and sustainability issues, social responsibility, the invest in R&D, low cost, easy as semblance and respect to eco regulations. Customer involvement contributes to low prices and the cost leadership strategy chosen. It is far more than a furniture merchant, it sells a lifestyle that customers around the world embrace as a signal that they have arrived, that they have good taste and recognize …show more content…

If the kids don’t want to be with their parents, they can stay at the supervised play area. They can all have a family lunch or a coffee at the IKEA restaurant and Café. They can also buy their favorite products and meals from IKEA food market in the exit area, which is not available for its competitors.
Imitate resources and capabilities; IKEA competitive advantage is its unique designs of products. These designs although may appear simple, but are IKEA’s trademarks. They are hard to imitate, and they are unique to the company. IKEA tries to differentiate its product from competitors by offering unique designs and high qualities, but at a lower price. Its designs are not everybody favor, but IKEA has been successful to identify and target a segment of the market that are interested in its

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