Sizintseva Marina

Kayali Egor

IKEA
IKEA is a Swedish multinational conglomerate that
COMPANY
designs and sells ready-to-assemble furniture, kitchen
appliances and home accessories, among other useful
goods and occasionally home services. Founded
in Sweden in 1943 by 17-year-old Ingvar Kamprad,
IKEA has been the world's largest furniture retailer
since 2008.The brand used by the group is
an acronym that consists of the founder's initials
(Ingvar Kamprad), and those of Elmtaryd, the family
farm where he was born, and the nearby
village Agunnaryd.
Founded in Sweden in 1943 by 17-year-old Ingvar
Kamprad, IKEA has been the world's
largest furniture retailer since 2008.The brand used by
the group is an acronym that consists of the founder's
initials (Ingvar Kamprad), and those of Elmtaryd, the
family farm where he was born, and the nearby
village Agunnaryd.
 MISSION

More than anything, the company values life at

home. Its culture is based on unity, enthusiasm, and
a "rational" view of the world.
 MISSION

IKEA are optimists and are constantly looking for

new ways to make everything better, starting with a
rocking chair that fits in a flat package, and ending
with LED light bulbs that are available to anyone.
 MISSION

The mission touches not only on

home improvement, but also on the
communities from which resources
are derived, and how products help
lead a more eco-friendly lifestyle at
home.
MISSION

"We can change the world

for the better just by
sharing what we do and
standing up for
ourselves."
 STRATEGIC
IKEA has a sustainable development
strategy which is called ”Yes - to people
on the planet!”.
STRATEGIC
The strategy is that this planet is our
only home. And now he needs us more
than ever. The risks of inequality make it
unaffordable. Lack of tolerance —
unfriendly. Climate change -
uninhabitable. But the house is
something that we create ourselves. This
means that the company will be able to
help billions of people make their daily
lives better.
STRATEGIC
GOALS

The company has set ambitious goals for

2030. Together with employees,
customers, and partners around the world,
they tackle the challenges of climate
change, unsustainable consumption, and
inequality. We will show three priorities,
which you could see on the next slides.
STRATEGIC GOAL #1

Healthy and eco-friendly living at home

Inspire more than 1 billion people to improve their daily
lives by following the principles of responsible
consumption.
STRATEGIC GOAL #2

Climate care and the cyclical model

Provide a positive impact on the climate and reproduce
resources, developing IKEA's business.
STRATEGIC GOAL #3

Fair treatment and equal opportunities

Have a positive social impact on everyone involved in
the IKEA value chain. 
 TACTIC AND OPERATIONAL
TARGETS OF ACTIVITY

• Development of services and solutions that extend the life of IKEA

furniture
• Creating an international clean energy community
• Expanding the range of more eco-friendly food and dishes
• The desire to fully provide yourself with energy from renewable
sources at all stages of the IKEA value chain
• Transition to zero-emission product delivery
• Support for socially vulnerable groups around the world
• Cooperation with social entrepreneurs
• Promoting gender balance and equal pay

To learn more: a link to the journal

 THE ORGANIZATIONAL
STRUCTURE
The founder of IKEA, Ingvar Kamprad, created such an organization and
ownership structure of the company, which guarantees its integrity and
independence.
The IKEA Group of companies is owned by the Stiching INGKA Foundation,
registered in the Netherlands.
The Fund owns the company INGKA Holding B. V. (INGKA Holding B. V.),
which is the founder of all the divisions of the IKEA group, starting with the
Swedwood Production Group and ending with the companies that own IKEA
stores in different countries.
Inter IKEA Systems B. V. owns the IKEA concept and trademark. All stores that
are part of the IKEA group of companies use this concept and trademark on the
basis of franchise agreements. The IKEA Group of Companies is the largest
franchisor in Inter IKEA Systems B. V.
THE ORGANIZATIONAL
STRUCTURE
INGKA Holding B. V. Board of Directors:Hans-Joran Stennert
(Chairman), Bruno Winborg, Jan Karlsson, Joran Lindahl, Karl
Wilhelm Ros, Peter Kamprad, Ingvar Kamprad (Chief Adviser).
IKEA Group Management:Anders Dahlwig (President), Hans
Gidel (Vice President), Josephine Rydberg-Dumont, Mikael
Ohlsson, Thomas Blomqvist, Pernilla Spiers-Lopez, Lars
Geiroth.
The total number of employees of the IKEA group of
companies is 90,000 people. IKEA operates in 44 countries
around the world.
THE
CHARACTERISTIC
S OF THE
MANAGEMENT An important element related to the corporate culture at IKEA is the values on the basis of
which the norms and forms of behavior in the organization are developed.

SYSTEM They help you manage your business, solve problems, and make wise decisions together. 10
values are highlighted:
1) unity and enthusiasm;
2) constant striving for development;
3) cost awareness in all areas of IKEA's business;
4) willingness to take responsibility and allow others to make decisions;
5) modesty and willpower;
6) simplicity;
7) guiding by personal example;
8) choose your path;
9) face reality;
10) never stop there.
 SPIRIT OF
IKEA
Having considered the values in the aggregate,
the way is formed-the general culture of
IKEA-what has been called "to act in the spirit
of IKEA" It is the values shared and declared
by the founders and the most authoritative
members of the organization that often
become the key link on which the cohesion of
employees depends, the unity of views and
actions is formed, and, consequently, the
achievement of the goals of the organization is
ensured.
 SPIRIT OF
IKEA
Having considered the values in the aggregate,
the way is formed-the general culture of
IKEA-what has been called "to act in the spirit
of IKEA" It is the values shared and declared
by the founders and the most authoritative
members of the organization that often
become the key link on which the cohesion of
employees depends, the unity of views and
actions is formed, and, consequently, the
achievement of the goals of the organization is
ensured.
 Pandemia and
IKEA
The pandemic has not stopped IKEA
from delighting its customers and
providing them with the best
solutions for their home. Due to the
development of their online store
around the world, any piece of
furniture could be delivered in the
shortest possible time.
IKEA SWOT
 Political forces

Political forces:
IKEA operates across more than 41
countries. The political forces are there
in every nation and affect the businesses.
From supply chain activities to sales, all
of them are affected by the political
forces. Political stability leads to
economic stability and in turn it means
better sales and profits. Apart from it, the
government’s attitude towards the
foreign brands and its policies too matter.
Political forces

How friendly the government’s policies

are decides how favorable the
environment of a certain nation is for
business brands. Political instability on
the other hand can disrupt the business
environment.
 Political forces

It can also lead to supply chain disruption. In the

past few years China and India have acted to
lower the political barriers for the foreign brands
which had led to increased presence of the
international brands in these markets. IKEA is
planning to dominate the emerging Asian
markets. The Red Tape is always a major worry
for the foreign brands operating in these markets.
As these barriers reduce slowly, India and China
get to become the battleground of big brands like
IKEA. Moreover, IKEA’s supply chain activities
can also be disrupted by political instability. A
large part of IKEA’s supply chain is located in
Europe and political disruption there can affect it
deeply.
Economical

Economical:
Economic forces play a very special role in the business environment. The condition of the world economy
decides how much profits and revenue the businesses will earn. Several of the big brands were in pretty poor
shape during the recession. It was mainly because recession had led to a decline in people’s purchasing
power. People lost their jobs in very large numbers and were forced to cut down on living costs. IKEA has
managed its products prices very well. So, that helps it manage some of the pressure that arises from
economic fluctuations. Still, economic fluctuations can be detrimental to the health of the big brands. A
stronger dollar makes US based brands lose their profits. Now that the economic scenario is better and the
condition of employment has kept improving, the brands all over the world are enjoying better sales and
higher profits. The economic condition of a market is also an important factor that affects the pricing in
particular regions and areas.
Social

Social and cultural factors too can have a deep impact on business and its profits. Before setting foot on any
of the international markets, it is important to get the local nuances right. It is important to respect the social
and cultural values of the local market. “Ikea has not always gotten these local nuances right.
The company came under fire for Photoshopping women out of its catalogue in Saudi Arabia and for
removing a lesbian couple from its magazine in Russia. “We have done mistakes,” acknowledges Kajsa
Orvarson, communications officer at Ikea Communications, the home of the catalogue, “but we are
becoming more and more aware of how to improve and to share our values. (IKEA, Fortune, 2015)” While
printing catalogues for distribution globally, IKEA has to ensure that the wrong things do not show up in the
right culture. Moreover, social trends and other factors can have a deep impact on sales. If particular styles
are in trend then the company must focus on them.
Technological
Technology has become central to nearly everything in the 21st
century. From marketing to finance and customer service
everywhere businesses are using information technology to provide
better service to their customers. Brands like IKEA are focusing on
providing a kind of experience from their digital channels that feels
like real life shopping experience. IKEA is also using augmented
reality to improve the level of customer service it provides. Now,
consumer expectations are heightened and most focus has to be on
better customer service. It is because research has also proved that
better customer service also leads to better customer service.
Technologies like Artificial Intelligence and Cognitive Intelligence
have enabled the retailers to understand consumer behavior better
and to provide them a new level of experience.
Environmental
Sustainability is now an important focus area for most business
brands. It is not because it helps with reducing costs but for it helps
with creating a better brand image. It does reduce the brand’s
operational costs but also improves a company’s image and the
overall experience. IKEA too has shown some serious focus on
sustainability. It has also invested in climate and as per a report by
the Guardian, it planned to invest a sum higher than $1 Billion in
renewable energy and to help the poor nations cope with the threat
of climate change. By 2020, it wants that all the energy used inside
IKEA stores comes from the renewable sources of energy. To this
end, it has already invested a large sum in wind and solar panels.
Not just that, it also wants its cotton and wood to be sourced from
sustainable resources.
Legal
Legal threats are always a major problem before the big businesses. It is
because laws and regulations are tough and even a small hassle with the law
can prove costly. Labor laws are an important concern but there are other
laws too that require compliance and can raise operational costs. Product
quality is also an important issue. IKEA has faced some cases of tipping over
and death in the past caused by its furniture. Moreover, laws vary from
market to market. In the Asian markets particularly, the legal web is quite
complex. India is an important retail market. However, penetrating it has
been tough for IKEA. The reason is that the government wants such foreign
brands to follow the rules it has set. IKEA would need to produce at least
30% of its inventory in India. Again this brings IKEA face to face with the
Red Tape. Many more foreign brands are badly caught in the trap of Red
Tape in India.
Target audience
The idea that it is necessary to sell not furniture, but solutions for
everyday life, and became the hallmark that allowed IKEA to grow to a
stunning scale. The impression economy, which has been so much
talked about recently, did not arise 10-15 years ago, it has always
existed. It's just that earlier, when not so many companies paid
attention to this, it was possible to compete only at the expense of
price or quality. Kamprad was one of the first to realize that
additional value is created not by brands,but by consumers with their
perception of the brand, mostly emotional.
To be successful, you need to create a clear brand image. And before
you create it, you need to know the expectations of customers, their
preferences. The middle class became the force that Kamprad relied
on when creating his company.
The target audience of IKEA is an ordinary middle-income family who
lives in an unremarkable apartment with limited living space. Simply
put — a typical, unremarkable cell of society. Most companies offer
the same nondescript product for this unremarkable cell. Kamprad
went the other way. From the very beginning, the relatively low price
and the benefits received by customers were put at the center of the
business strategy.
Target audience
In the final price of the product, the cost of the product itself can
be about 30%, the remaining 70% - related services, salaries of
consultants in the store, movers and other service personnel.
Kamprad quite logically suggested that it is much more
important for his clients to save a couple of hundred crowns
than to spend a few tens of minutes assembling a bookcase.
The idea of self-assembly of furniture by the buyer has become
the main profile of the IKEA brand.
Competitors
Currently, IKEA occupies a large part of the furniture and home goods
market. Global brand awareness certainly plays a role in the high market
share. It is impossible not to pay attention to the direct competitors of
IKEA:

1) Stolplit furniture factory. Stolplit furniture factory, founded in 1999, is

one of the largest companies, the production of which is equipped with
high-tech European equipment. Stolplit occupies a leading position
among Russian furniture manufacturers. Today, Stolplit furniture is
represented in 13 regions, there are more than 2000 Stolplit branded
stores throughout Russia and in the near abroad.

2) Shopping complex "Your Home". To date, the network "Your Home" has
5 hypermarkets: four-in Moscow and the region, one - in Voronezh. In July
2015, a convenient and stylish online store was launched.
Hoff hypermarket chain. Hoff hypermarket chain is one of the largest
Russian and dynamically developing furniture chains. This is the only
Russian chain of furniture and home accessories operating in the
hypermarket format. To date, the Hoff furniture and home goods
hypermarket chain has 13 stores, including 12 hypermarkets. The
company employs more than 2,200 employees, the total area of the
hypermarkets of the network is more than 125,000 square meters.
meters. Hoff hypermarkets are visited by more than 5 million people
every year, and the company's website receives more than 12 million
unique visitors every year.

Index Living Mall. In April 2014, the first Russian branded retail outlet
IndexLivingMall – the Asian equivalent of IKEA-was officially opened in
Barnaul. A local entrepreneur bought a franchise some time ago. A
promising and dynamically developing network of hypermarkets of
furniture and household goods was founded in Bangkok in 2002. Thanks
to competent management, the company quickly went up the hill and
achieved wide popularity. Among the possible disadvantages – quite
high, compared to IKEA, prices, which are affected by additional services
and high quality furniture.
What IKEA can do, to become better?
According to the analysis, we have come to the conclusion that IKEA
Can provide this decisions:

1.Try to cover all untapped emerging markets

2. Integrate new conceptions of environment friendly energy sources
3. Provide some ideas for DIY
4. Increase amount of luxury products
The value chain
The value chain

Based on the value chain analysis we

would like to suggest IKEA develop in-
house technologies. Unfortunately,
they are outdated and this is not
acceptable for organisation which
wants to make world cleaner, faster
and better.
Analysis of business-level strategy
IKEA business strategy is built upon the IKEA concept. The IKEA Concept starts with the idea of providing a range of home
furnishing products that are affordable to the many people, not just the few. It is achieved by combining function, quality,
design and value – always with sustainability in mind. The IKEA Concept exists in every part of the company, from design,
sourcing, packing and distributing through to business model.
The following points constitute integral elements of IKEA business strategy.
1. Offering the lowest prices. Cost effectiveness is one of the solid bases of IKEA competitive advantage. The global furniture
retailer is able to offer low prices thanks to a combination of economies of scale and technological integration into various
business processes.
2. Increasing variety of products. Great range of products also belongs to the list of IKEA competitive advantages. There are
9500 products across in IKEA portfolio and the company renews its product range launching approximately 2,500 new products
every year.The company is also increasing its presence in food and catering industries.
3. International market expansion strategy. The home improvement and furnishing chain has traditionally engaged in new
market development in an aggressive manner. IKEA Group operates 422 stores in 50 markets around the world.19 new IKEA
stores opened in 2018 alone.Additionally, IKEA has 22 Pick-up and Order Points in 11 countries, 41 Shopping Centres in 15
countries and 38 Distribution sites in 18 countries.
4. Benefiting from strategic alliances. The global furniture retailer benefits from strategic alliances to a maximum extent
and the formation of strategic alliances is placed at the core of IKEA business strategy. The list of the most successful
collaborations include partnership with Apple to explore the possibilities of Augmented Realityas a tool for home-furnishing,
partnership with LEGO for new product development and partnership with Adidas in knowledge sharing about customer
behaviour. Experience and competency in the formation of strategic alliances can be specified as one of the most important
IKEA competitive advantages.
Currently, IKEA is in the middle of transformation of its business model that made it successful in the global scale. Specifically,
for many decades IKEA business strategy was largely based on having giant out-of-town warehouses, where shoppers pick their
own furniture and then build it at home. But now it is looking increasingly at city-centre stores, online shopping, home delivery
and assembly, and more radical ideas such as leasing furniture and selling on websites such as Alibaba.
 Decisions
In fact, the company do its best for following its strategy
correctly.
But no one can not stop at what you have already received. It is
always necessary to strive for improvement.
They could improve their strategy by:
a) rising the quality standards;
b) to become more integrated into the culture of each country
where the shops are situated;
с) enhance conditions for employees.
The impact of suggested decisions on the
effectiveness
a) It will help to avoid different conflicts which are related to the quality of products.
b) Different countries have different tastes and preferences in interior design, so this improvement
will help to increase the loyalty of consumers in different countries.
c) There are many situations and scandals associated with dismissal or unfair treatment of
employees, so this improvement will increase the efficiency of employees and also increase brand
loyalty
Competitive advantages
IKEA has edge over its competitors due to several competitive and key advantages. IKEA can utilize on these

advantages for market expansion & development and domestic market.

KEY COMPETITIVE ADVANTAGES OF IKEA’S

Following are the key competitive advantages of IKEA’s

a. IKEA’s has strong brand image around the globe and also well known for quality, stylish furniture at low cost.

b. It has in-depth knowledge of customers therefore; they are able to design the stylish furniture at low cost

which attracts the target segments.

c. It has strong network of supplier around the globe.

Decisions and Impact

1. We suggest IKEA provide more flexible decisions for home.

It might be not only furniture, but also building materials or DIY
kits

2. Add ability to customize linens, towels etc. Seems that it is

important for zoomers
The main competitors of IKEA

• Walmart
• Amazon
•Hoff
• Wayfair
• Leroy Merlin
• Sears
• Tesco
Ansoff matrix
Within the scope of Ansoff Matrix, IKEA uses all four growth strategies in an integrated manner:

1. Market penetration. Market penetration implies selling existing products to existing markets. IKEA uses market
penetration strategy aggressively. Effective marketing strategy in general and IKEA catalogues in particular play an
instrumental role in increasing the efficiency of market penetration for the furniture retailer.

2. Product development. This involves developing new products to sell to existing markets. Product development is one
of the main growth strategies for IKEA. The home improvement and furnishing chain has more than 9500 types of products
in its range and it launches about 2500 new products every year.The company makes some of its products in-house, as
well as, purchases from suppliers.

3. Market development. Market development strategy is associated with finding new markets for existing products. The
world’s largest furniture retailer engages in market development extensively. IKEA Group operates 422 stores in 50
markets around the world.19 new IKEA stores opened in 2018 alone.The company is forecasted to enter into more
developing markets in short and medium term perspective.

4. Diversification. Diversification involves developing new products to sell to new markets and this is considered to be the
riskiest strategy. IKEA experiments with diversification business strategy occasionally. IKEA restaurants within furniture
retail shops can be mentioned as a stark example of diversification by the company. It has to be mentioned that although
the furniture retailer has expanded its business strategies of cost advantage and no-frills products to foods offered at IKEA
restaurants.
McKensey matrix
Matrix of BCG
Cach Cows
The products falls in this category are market leaders, as it brings more cash
than invested. But these products have low market growth with high level of
market share. IKEA’s food is famous all around the world, and consider as the
cash cow for the company, because of its amazing taste and quality, yet it has
the potential to grow, which IKEA needs to understand. IKEA should invest more
in this segment for maintaining the level of productivity, or in other words, “to
milk the gains” more passively. It can open its restaurants to entertain the
consumers who are only looking for good food or restaurants. Moreover, its
home appliances are also fall in this category, as there are large number of
customers, who wait for the IKEA discount offers and sales to buy the home
appliances and other accessories
Question Marks
These products in the business have usually high growth level but the market
shares are relatively low. It shows that these products consume much of the
investment, but returns are very low as in comparison. In other words, these
are also known as problem children of the company. However, they have the
potential to be start products if the business unit grows. For IKEA, its textile
products fall in this category, because of the strong competition from different
companies like Linens, denim etc. the company was suggested to invest more in
this segment, as it has the potential to grow, and because of the strong brand
position, it can capture the market
Stars
These are the best products of segment for the business, as it has the high
market share along with high level of growth rate. This means that it brings
more in return than the investments. First-to-Market products of the company
are termed as the stars. There is a threat that these products might turn into
cash cows, if the strategies are not monitored continuously. IKEA is mostly
known for its ready to assemble furniture, and it is the start for the company.
However, for sustaining the market position and the star category, IKEA always
respond to the latest fashion trends, and satisfy the consumers in the same
way. It continuously monitors its marketing and pricing strategies, to bring more
unique and innovative designs in most affordable rates to the consumers
Dogs
These products are at break even, which are not bringing much or consuming
much investment of the company. Thus, it has both low market share and low
growth level. Shutting down the operations of this might be more beneficial for
the company as the invested funds can be use somewhere else. Children toys
can fall in this category in some country, however, IKEA make sure to maintain
its trategies so well, that it grows every year
Interim report IKEA is a Swedish store whose main stated goal is to
produce and sell functional and convenient home goods at
significantly low prices.
The IKEA Group has 31 distribution centers in 16 countries.
These divisions supply goods to IKEA stores. There are
about 45 purchasing service offices in 31 countries. This
allows us to maintain close relationships with all 1,350
suppliers in 50 countries around the world.
The diversity of the IKEA product range manifests itself in
several ways. First, there is a wide range of features: you
can find everything you need for home improvement - from
indoor plants and living room furniture to toys and fully
equipped kitchens. Secondly, there is a wide range of styles.
Interim report
Low prices are the cornerstone of IKEA's business idea and
company concept. All IKEA products are created with one
main idea: thanks to low prices, beautiful and comfortable
household items can be available to everyone. Each time,
the company strives to make things a little better, simpler,
more efficient, and necessarily more profitable.
To improve the efficiency of its activities in the social and
environmental spheres, IKEA builds partnerships with
various companies, trade unions, non-governmental
organizations and other organizations.
 CSI
Parameter Importance Estimation
1 – not important 1 –   very bad
10 – very important 10 – ideal
Product quality 10 9
Ease of use of the product 8 9

Availability of the product 8 8

Product price 10 7

Staff competence 9 8

Service Level 7 10

Advertisement 6 9
CSI
Calculate the CSI customer satisfaction index using the formula:
Importance * Score*100%= CSI
Quality of the product = 90%
Competence of the staff = 72%
Ease of use of the product=72%
Price of the product = 70%
Level of service= 70%
Availability of the product = 64%
Advertisement = 54%
CSI

We sum up the estimates for each of the

parameters and translate them into percentages.
(9+9+8+7+8+10+9)/7= 8,6
8,6/10*100=86%
It is a positive indicator, so IKEA did a great job.
Analysis of unsatisfying needs and
requirements
From the CSI analysis we can see, that less of all customers are unsatisfied by:
Availability of the product = 64%
Advertisement = 54%
So, it is very important for IKEA company to make their products more available (For example I had
a situation when I went to IKEA to buy special hanger. It took me a lot of time to find the copy from
the showcase. And there were no these hangers in the shop).
Of course, all customers know what IKEA is, but advertisement always maintains customer loyalty.
Analysis of lifecycle of strategic business units
Analysis of lifecycle of strategic business units
ADL/LC Matrix
 Corporate governance of IKEA

In addition to the business model, the corporate strategy is based on the company's mission and values
Corporate governance of IKEA
The company has adopted a simple, democratic management
style. In the office, it is almost impossible to determine who is
the boss. However, the room itself is a large open space where
everyone works at the same tables. Managers do not have
separate offices, and any employee can approach them with a
question if necessary. Managers do not seek to prove their
own status with the help of material assets, such as exclusive
furniture in the office or an expensive suit. The position in the
company and the respect of colleagues are won by knowledge
and competence. After all, only statements about democratic
governance do not give the desired result in practice. For
example, feedback from subordinates is a prerequisite for
productive activity. Managers hold conversations with their
employees, during which the latter get the opportunity to talk
about their work and express their wishes.
Corporate governance of IKEA
A good tool for maintaining corporate unity is a variety of
trainings for staff, which tell about the roots of the company,
regulations, and principles of work. In addition, domestic
newspapers have become a common practice. Relationships are
built during a normal workflow. It is much more convenient to
communicate with the manager on an equal footing within the
framework determined by his experience and knowledge. Such
a model is not a project that is hardly supported by all
employees, but a natural state of affairs that harmoniously fits
into the corporate culture. Managers of the company are its
guides and at the same time an example for employees. Just by
listing the rules, it is difficult to get the desired result from a
subordinate. This is somewhat similar to the methods of
education. For example, managers do not force their
subordinates to work, but strive to encourage them to work
productively every day by their own behavior. One of the main
principles is "leading by example", that is, leadership through
your own example.
Our suggestions
Employees of the company want to get something more from
the organization than just wages: they not only expect to be
financially successful, but also prefer to feel psychologically
comfortable in an organization whose cultural values
correspond to their personal value orientations.
• Corporate symbols are the most important component of
the organizational culture. Beautifully designed
calendars, souvenirs, clothing, and interior design
elements are usually a source of pride for employees and
an occasion to promote the company's corporate culture
in the external environment.
• To improve the socio-psychological climate in the team,
namely, to increase the cohesion, openness and
collectivism of employees, the management should
organize corporate events. Holding events and holidays is
an important part of the corporate culture.
 Analysis of the mechanism of strategic entrepreneurship
The Duplication strategy used by IKEA provides the best growth results, as the company repeats its
business model in new geographical markets and easily adapts its experience in product development and
in approaches to production and marketing issues.
Strategic goals:
• Reduce the plan to open new stores next year;
• Reduce the company's costs through indirect spending (for example: personnel, advertising,
marketing);
• Efficiency is at the forefront. With fewer resources, you get a better result. The activities of any
department and employee will be evaluated according to the "efficiency" parameter; An increase in the
percentage of recovered goods (goods damaged during transportation, goods in damaged packages,
etc.);
• A revision of the operating cost standards. Each employee needs to take even more care of goods for
sale, equipment, and save on office supplies, consumables, and electricity;
• Increase the share of Russian-made goods to reduce the cost of customs duties, etc. (in essence, the
development of the Russian furniture industry);
• The list of goods to be shipped for each region and store is formed individually on the basis of research
on consumer preferences. Regular monitoring of prices in all regions of the presence of IKEA stores is
carried out and prices are compared with the prices of competitors of federal and local significance.
Thus, the pricing policy in the company is absolutely consistent with the market of a particular region;
• To stimulate demand, each particular store, in addition to general marketing campaigns and sales plans,
individually develops promotions for the sale of warehouse surpluses.
Our suggestions
• The company "IKEA" should continue to develop in the
field of production of furniture and interior items from
environmentally friendly materials. Due to the
strengthening of competitors, IKEA should make special
efforts to develop new production methods, otherwise it
risks losing its position in the furniture market.
• IKEA should continue to improve its marketing strategy by
resorting to new and original methods of presenting its
products to the general public, such as using them to
advertise sports and cultural events. When developing
advertising campaigns, you should take into account that
the market situation is changing rapidly and to stop there is
to give your market share to a competing firm.