IKEA

[Name of the Institute]

IKEA

Introduction

IKEA is the leading manufacturing firm, engaged in the manufacturing of furniture. Since its inception, IKEA has maintained a distinctive position among its competitors, thus enjoying an overwhelming competitive advantage. IKEA's unique brands have always won customers' attention thus there is no reason why can't the Swedish giant firm make its presence felt in the Australian market (Cveykus, 2006)

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Discussion

With the rapid growth of the business, Kamprad recruited Gillis Lundgren, a young designer, who initially helped out to do snapshots for the catalogues, later on he began to create furniture designs for IKEA, which includes many best sellers.

Corporate Level Strategy

Corporate strategy primarily is focused to the collection of businesses in which an organisation competes and develops and coordinates the business portfolio (Baum & McGahan 2004). Corporate strategy deals with:

• Corporate responsibilities; these include goal identification, type of business, he process of business management.

• Defining the competitors.

• Developing synergies by coordinating, sharing and investing personnel, financial resources and other assets across all the business units and using business units to assist other corporate activities. • Management style such as centralization or decentralization.

Organisations are liable to create value through their businesses by maintaining their business portfolio, making sure that their businesses are thriving for a long time (Baum & McGahan 2004).

Business Level Strategy

Business strategy is concerned with creating and nourishing a competitive edge for the products that are produced and services that are rendered. Business strategy deals with:

• locating the business against competitors

• predicting changes in technologies and demand

• manipulating the competitive nature with the help of strategic actions.

Another business strategy used by IKEA is that when a rival introduces similar commodities into the market at a comparatively cheaper price, IKEA goes for a “stripped-down and even cheaper” policy to compete with its competitors.

Competitive analysis and industry

We believe that our company will differ from the rest because in addition to serving advice in terms of decor, we give our customers a three year warranty and feature is that our prices are so affordable that anyone can buy our products. We also make agreements with other companies to provide them so we have a dual function and that is to sell to the public and provide to other companies for the purchase or lease all of this through agreements. Moreover all the strengths that have our competition is that they are more widespread in the media and have greater market coverage and selling in the international market. There are other companies that work only work on a national level but which affect us directly because they are potential competitors, even if retailers (Byars, 1991).

Companies that have taken as sample have an average of 23 years, 19% of respondents said sales, the level of those who did have stated billing is as follows: 34% of respondents turnover below $300,506, a 23% turnover of between 300,506 and $ 601,012, 14% between 601,012 and $ 1,502,530 and 10% between 1,502,530 and $3,750,000, with these data we can ...