Competitive advantage - 5 forces

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ACKNOWLEDGEMENT

No words can express my appreciation and gratitude to my research advisor _______ through the course of this research, Professor _____has taught me numerous values that extend well beyond the realm of _________ (Your Subject Name). His emphasis on dedication to work and his valuable and practical insights of life are some of the major highlights of my education at The University _________. To Professor _____, I say with great respect, thank you very much.

It is a great honour for me to have Professor _______ on my dissertation committee. His insightful suggestions and comments are a major asset to this research. I learned so much from Professor ______, and I will always remember him as a truly superb teacher. To Professor _____, I am greatly indebted.

I would like to thank Professor ______ for his contribution to this research. Professor _____ has provided me with essential input and guidance as an outside member of my committee. His remarks and suggestions are greatly appreciated.

I would like to thank _____________ for the support they had provided me throughout the research project.

I would like to thank _____________ for their support and help in this research.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for the academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

ABSTRACT

The home-ware industry is dramatically changing with intense competitions and sophisticated consumers. These changes force home-ware management to seek sustainable competitive advantages in the business. The major aim of this dissertation is to analyze the competitive environment of IKEA and analyze the five industry forces of IKEA.IKEA Group (Ikea or 'the group') is a global retailer of Scandinavian designed furniture and accessories. The parent company of the Ikea Group of companies is Ingka Holding, a private Dutch-registered company, which in turn is owned by Stichting Ingka Foundation. The study is presented within the broad theoretical framework of competitive strategies. Competitive strategies are widely understood in terms of Porter's (1980) theoretical model. Price sensitivity is relatively high as most product lines are commonly available across different retailers. Manufacturers of home furniture have typically small- to medium-sized operations and often specialize in one area, such as pottery, glassware, metallurgy, or soft furnishings; the bargaining power of the suppliers is strong. A lack of brand strength towards both retailers and manufacturers implies that it is comparatively simple for new companies to enter this market. The threat of new entrants is strong. Overall, the threat of new entrants is strong. One possible substitute to buying from retailers is to go directly to manufacturers, where substantial savings can be made, thus attracting buyers. The lower or negligible cost of these alternatives, coupled with low switching costs for buyers, puts the overall threat of substitutes as moderate. In the UK market, furniture specialists account for the largest ...