Ikea's strategic capabilities are their strengths, such as their skilled human resources and their efficient value chain and distribution channels the company developed strategies to overcome weaknesses and convert them into strengths which the organisation can capitalise on to gain competitive advantage. Ikea is the only furniture store that adopts this practice in singapore and it is accepted by all ikea customers as they understood it as a cost saving method through education by ikea to the customer on their catalogues. Viro analysis of ikea which of ikea‟s resources and capabilities add value style at low cost desirable products enjoyable shopping experience inventory system customers can take home furniture immediately experience with global expansion necessary knowledge for successful launches in new markets.
Ikea realized strong in-stock position in which the most popular style and design trends were correctly anticipated is crucial to keep satisfied customers (torekull 2008) for that reason, just-in-time concepts are applied to decision making. Identify key resources and capabilities of ikea, and critically examined how the resources and capabilities have been beneficial to ikea in terms of competition among various models, value chain analysis will be applied. Assets, capabilities, organizational processes, knowledge, etc, controlled by a company that allows the implementation of strategies that enhance their efficiency and effectiveness are considered a resource (barney, 1991.
Low cost business model ikea experience michael flynn ikea's core competencies david perrella serge semenets vince formusa mike flynn 1 pick up pencil & map 2. Ikea's capabilities have originated from the company's unique resources and its core competencies that revolve around a successful retail strategy, making it the world's largest retailer of home furnishings whilst many companies tend to continually add product lines and expand their. Ikea executive summary the following is an analysis of the ikea case study found in the strategic management text book this analyses the strategies used by ikea to gain competitive advantage in markets outside its original area.
Ikea testing capabilities ikea tests ul's laboratory in cabiate, italy is an ikea approved test lab for testing tables, storage units, seating, beds, and mattresses. Agenda internal analysis ikea's resources organizational capabilities resource appraisal sources of competitve advantage competitve strategy swot strategies efe & ife. Ikea strategic competences and capabilities - kindle edition by david wagener download it once and read it on your kindle device, pc, phones or tablets use features like bookmarks, note taking and highlighting while reading ikea.
For our 2/2/2013 operation management class we did a case study on ikea and had to write a one-page paper answering 4 questions i thought you may be interested, if i shared it with you. As ikea expanded around the world, it codified and standardized many practices, but it also purposefully reinforced its participative way of bringing capabilities to scale, and thus translated the strategic into everyday practice. Ikea core competencies case ikea 1 what are the core competencies and end products of ikeahow are they linked with each other the most important core competencies of ikea is their ability to design furniture and interior products with a strong focus on a nice and appealing design combined with the lowest integral costs.