IKEA Strategic Management Plans in Europe

Abstract

IKEA is a home-furnishing store founded by Ingvar Kamprad in Sweden in 1943. IKEA uses a franchising business format in order to reach as many people as possible with their products. Their franchise system allows for the company to expand internationally while protecting the IKEA Concept. IKEA sells furniture, electronics, beds and mattresses, and every other tool and appliance that is required in a home. IKEA’s vision is to create a better everyday life for the most people. Its mission is to offer a wide array of functional and well-designed furnishings for homes at low prices that are affordable to everyone. IKEA’s goals are in keeping with its mission. Its objective is to provide an array of home furnishings that are of good quality and that are well designed and well-functioning at low prices that are affordable to the majority of people. To achieve this goal, IKEA uses strategies such as marketing its products to individuals rather than to the masses, using a standardized selection of retailers, using country-specific management styles to optimize the way IKEA stores are managed, instead of opening large mall-like stores. Just like any other business, IKEA faces challenges in its journey to make the business profitable while delivering affordable products. One of the biggest challenges facing IKEA is an increase in the number of competitors that are adopting IKEAs low price strategy, this in addition to the rise in prices of raw materials which led to IKEA hiking up its price for the first time in five years. In conclusion, IKEA is a widely recognized global brand with stores all over the world. It needs to assess its SWOT analysis statistics and its competitors in order to make sure it always stands out in its market. IKEA’s need to stay true to its mission sets it apart from most of its competitors; it always strives to offer its customers a large array of high-quality, low-cost products. All its systems, from production to delivery, shows the business's commitment to stay environmentally friendly. One of the ways it reduces its carbon footprint is by using designs that allow more items to be packaged in a crate that is usual, thereby reducing the delivery journeys. IKEA is focused on becoming a leading example in developing a sustainable business. It refuses to compromise doing good business and being a good business. It always aims more towards making life better for most people rather than a profit or having a good reputation. IKEA has stayed true to the vision of its founder, and it is clearly working for the business, as shown by its success and prestige.