IKEA's business strategy

IKEA is a furniture business group of Swedish billionaire Ingvar Krampad. Over 50 years of
establishment, IKEA is today a giant multinational corporation with furniture trade centers
located in 30 different countries and 76,000 employees. IKEA's annual sales exceed 12 billion
Euros. IKEA has grown continuously and has become a multinational corporation. IKEA is
present in more than 30 countries. Krampad's IKEA development strategy is continuously to
expand the worldwide market. IKEA focuses on the resources of input from countries with low
labor costs. IKEA products are ordered from 1800 manufacturers in 55 different countries
around the world. Asian countries are becoming more and more important partners of IKEA,
especially China and more recently ASEAN countries. Understanding the need of customers that
they together go shopping with their whole family, the IKEA shopping mall is organized in
association with restaurant services, coffee and entertainment services for children. Therefore,
IKEA has created for customers, often the whole family, a feeling of relaxation and comfort for
shopping. Many people, even though they do not intend to buy furniture, they regularly are
used to visit IKEA. In fact, only few people “leave with empty-handed”.
With the slogan of “saving for customers”, the IKEA services has been organized so that
customers can choose, transport and assemble their own furniture at home. IKEA wooden parts
are designed and assembled in the easiest and most convenient way for all ordinary customers.
Ingvar Krampad in particular and IKEA in general pay great attention to research on the buying
behavior of customers, especially women. IKEA's customer and market research shows that
women are more interested in buying and selling furniture and home appliances. Therefore, the
sales layout and product categories at IKEA are oriented towards women’s psychology and
women’s buying behavior. IKEA pays special attention on promoting image and reputation with
environmental protection. That's why IKEA always refuses the products with chemicals, woods
from the rainforest that are being invaded. IKEA Group is one of the major sponsors of projects
to protect the environment and combat child labor exploitation in developing countries. IKEA
has not been oriented on delivering and installing for customers, but IKEA pays special attention
to other services for customers. If customers do not have a car, IKEA is willing to rent a car. If
customers’ car is too small, IKEA has a big car to carry. People with children can shop in
convenience because IKEA has a free babysitting service in the store. With the above
implementation methods, IKEA has quickly succeeded in international market.

Question: Define IKEA's competitive strategy in the international market? How has IKEA
exploited the value chain to implement this strategy?