Ikea Strategic Plan
Names: Freddy Kaan 157228, Selina schmid 171778 , Tramy Le 147710, Larry Atabongafac Nkacha 126063, Gerlof veltman 144789, Rixt Bruinsma 165646
School: Stenden Hogeschool
Teacher: Mr. Hendriksen
Date: 9 March
Group: 3
Table of contents Executive Summary: 3 Introduction of the case: 3 Introduction of the company 4 Analysis of current situation 6 Current mission: 6 Goals: 6 Strategy: 6 Internal environment 6 Core competence: 6 Synergy: 7 Value creation: 7 Functional analysis: 7 Strengths: 7 Weaknesses: 8 External environment 8 Macro environment 8 Opportunities: 9 Threats: 9 Porter five forces 10 SWOT-matrix: 11 Strategic Gap: 12 Strategic choice: 13 Implementation plan: 14 Conclusion and Recommendations : 15 Bibliografy 16
Executive Summary:
IKEA is a company established in the early 1940s. The company has 140 stores spread over 30 different countries. IKEA is a retailer that sells furniture, home furnishings and house wares. IKEA has a clear mission: selling a wide range of furniture and accessories at a reasonable price so that most people can buy them. IKEA is mainly active in Europe and the US. 78 percent of IKEA’s income derives from these markets. The customers are mostly youngsters or families. Currently IKEAs strategy is the cost leadership strategy. By employing the self-serving method IKEA managed to keep the prices low. Since the financial crisis the demands of the population has changed to low budget furniture. Many companies have also started to focus on cheaper prices because of this, although IKEA is still cost leader in their market segment. IKEA is one of the biggest furniture companies but not widely present in areas around Europe and America. In order to enter those markets and fill other gaps IKEA has to change to the transnational strategy. This will introduce cultural awareness connected to low cost furniture. Although competition is raising and IKEA is mostly present in a concentrated area IKEA is one of the
School: Stenden Hogeschool
Teacher: Mr. Hendriksen
Date: 9 March
Group: 3
Table of contents Executive Summary: 3 Introduction of the case: 3 Introduction of the company 4 Analysis of current situation 6 Current mission: 6 Goals: 6 Strategy: 6 Internal environment 6 Core competence: 6 Synergy: 7 Value creation: 7 Functional analysis: 7 Strengths: 7 Weaknesses: 8 External environment 8 Macro environment 8 Opportunities: 9 Threats: 9 Porter five forces 10 SWOT-matrix: 11 Strategic Gap: 12 Strategic choice: 13 Implementation plan: 14 Conclusion and Recommendations : 15 Bibliografy 16
Executive Summary:
IKEA is a company established in the early 1940s. The company has 140 stores spread over 30 different countries. IKEA is a retailer that sells furniture, home furnishings and house wares. IKEA has a clear mission: selling a wide range of furniture and accessories at a reasonable price so that most people can buy them. IKEA is mainly active in Europe and the US. 78 percent of IKEA’s income derives from these markets. The customers are mostly youngsters or families. Currently IKEAs strategy is the cost leadership strategy. By employing the self-serving method IKEA managed to keep the prices low. Since the financial crisis the demands of the population has changed to low budget furniture. Many companies have also started to focus on cheaper prices because of this, although IKEA is still cost leader in their market segment. IKEA is one of the biggest furniture companies but not widely present in areas around Europe and America. In order to enter those markets and fill other gaps IKEA has to change to the transnational strategy. This will introduce cultural awareness connected to low cost furniture. Although competition is raising and IKEA is mostly present in a concentrated area IKEA is one of the