The Strategy of IKEA

The Strategy of IKEA

Background

This paper intends to discuss the underlying strategy of IKEA. IKEA is one of the most renowned and famous companies. This essay will assess the company IKEA in order to make sure that the concepts read throughout the chapter of strategic planning are applied properly. Also, the paper will talk about the history of IKEA along with its mission statement, revenues and other important statistics of the company. General strengths and weaknesses of the company IKEA will also be explored in the first paper of the paper. The next part of the paper will be based over the application of the concepts revolving around the function of strategic planning. The different concepts studies throughout the module will be elaborated in relation with the functioning of the organization. The purpose of this paper is to make the readers aware about the significance of strategic planning and other important concepts associated with the strategy making process in reference with the practical example of IKEA.

Assessment of the Company

IKEA remains one of the most important companies which are essentially responsible for making the homes look as people desire their living places to be. The concept of IKEA was first initiated in 1958 with its first store opening in Sweden. The underlying assessment of IKEA suggests that the companies like IKEA need to strategically plan in order to grow and become successful. Started from being a furniture retailer to become one of the most important home makers in several countries; the growth of IKEA is essentially remarkable. The only thing for which IKEA needs to be concerned is the lower prices because in order to become a mass serving company; the prices need to be low so that every common man can afford the product offerings of IKEA. The overall evaluation of IKEA suggests that it essentially works with a low cost strategy and deploys best of its strategic planning to achieve the strategic goals.

About the Company

History of IKEA

The history of IKEA can be traced back to 1920s. Ingvar Kamprad started selling matches to his neighbors. His business ideas were excellent at that point in time and he knew how to earn profits out of small things. Ingvar started his business career by becoming a furniture retailer. With the passage of time, in 1960s and 1970s; the concept of IKEA started to took a new shape. Expansions were made and new products were launched. The expansion of IKEA in United States of America, France, Italy and United Kingdom was immense and rapid. The Children's IKEA was another important milestone within the history of IKEA. The main focus if this business line was to make the children happy through decorating their rooms (www.ikea.com).

About IKEA

The first store being opened in Sweden in 1958; IKEA has never looked back. The international expansion took place within less than two decades. Norway, Denmark, Switzerland, Germany were the initial place where IKEA opened up its stores. At the same time, IKEA also opened ...