Ikea Strategy in Egypt
Z
Master of Business Administration
IKEA Company
Term Project
STRA 703- Strategic Management
Presented to
Prof. Dr. Thomas Diefenbach
by
Merham Yousri
, Mona Mansour
And Passant Fouda
Table of Contents 1. Introduction about IKEA 4 1.1. How the concept IKEA Began 5 1.2. IKEA concept, Mission and Vision 6 1.3. The main reason behind IKEA 6 2. The Main Strategic Problem in IKEA 7 3. PESTAL Analysis of the Macro- Environment 7 3.1. Political and legal Side in Egypt 7 3.2. Egyptian Economy 9 3.3. Egyptian Socio-Cultural environment 10 4. Porter’s five forces Model 11 5. IKEA Resources, Competences and capabilities 11 5.1. IKEA Resources 11 5.1.1. Financial resources 12 5.1.2. Physical resources 13 5.2. IKEA Competences and capabilities 14 6. SWOT Analysis 15 6.1. The Following Strategies would be great for IKEA: 16 6.1.1. SO strategies: 16 6.1.2. WO Strategies: 17 6.1.3. ST strategies: 17 6.1.4. WT Strategies: 17 7. IKEA’s Current Strategic Position 19 7.1. Competitive Advantage 19 7.1.1. Cost Leadership 19 7.1.2. Product Differentiation 19 7.2. Bouman’s Strategy 20 7.3. Ansoff’s Product/ Market-Matrix 20 8. Strategic Options 21 8.1. To Target new segments for example; Resorts and hotels not only good Standards people and expatriates. 21 8.2. IKEA should perform detailed Market research and studies of individual market tastes and get a feel for its Unique Customer. 21 9. Recommendations 21
1. Introduction about IKEA
What would be considered a great idea in the era of furniture? A dream of many customer would be high quality products and low of prices for these product because in the old days, you either got high quality and paid its share or went for cost but suffered low quality.
Following the idea of his own Smaland province, Ingvar Kamprad invented the IKEA concept. Why not make the most out of limited resources? That is what Ingvar decided to
Master of Business Administration
IKEA Company
Term Project
STRA 703- Strategic Management
Presented to
Prof. Dr. Thomas Diefenbach
by
Merham Yousri
, Mona Mansour
And Passant Fouda
Table of Contents 1. Introduction about IKEA 4 1.1. How the concept IKEA Began 5 1.2. IKEA concept, Mission and Vision 6 1.3. The main reason behind IKEA 6 2. The Main Strategic Problem in IKEA 7 3. PESTAL Analysis of the Macro- Environment 7 3.1. Political and legal Side in Egypt 7 3.2. Egyptian Economy 9 3.3. Egyptian Socio-Cultural environment 10 4. Porter’s five forces Model 11 5. IKEA Resources, Competences and capabilities 11 5.1. IKEA Resources 11 5.1.1. Financial resources 12 5.1.2. Physical resources 13 5.2. IKEA Competences and capabilities 14 6. SWOT Analysis 15 6.1. The Following Strategies would be great for IKEA: 16 6.1.1. SO strategies: 16 6.1.2. WO Strategies: 17 6.1.3. ST strategies: 17 6.1.4. WT Strategies: 17 7. IKEA’s Current Strategic Position 19 7.1. Competitive Advantage 19 7.1.1. Cost Leadership 19 7.1.2. Product Differentiation 19 7.2. Bouman’s Strategy 20 7.3. Ansoff’s Product/ Market-Matrix 20 8. Strategic Options 21 8.1. To Target new segments for example; Resorts and hotels not only good Standards people and expatriates. 21 8.2. IKEA should perform detailed Market research and studies of individual market tastes and get a feel for its Unique Customer. 21 9. Recommendations 21
1. Introduction about IKEA
What would be considered a great idea in the era of furniture? A dream of many customer would be high quality products and low of prices for these product because in the old days, you either got high quality and paid its share or went for cost but suffered low quality.
Following the idea of his own Smaland province, Ingvar Kamprad invented the IKEA concept. Why not make the most out of limited resources? That is what Ingvar decided to