Essay Chosen organisation IKEA Example | Topics and Well Written Essays - 4000 words

Chosen organisation IKEA - Essay Example But, the strategy of IKEA is to target middle class families on global level with variety in designs, quality and price. Companies like Sears, JC-Penny, Flanigan and Raymour are competitors to IKEA in the USA. Competitors in Europe include companies like John Lewis, Argos, B&Q and TESCO. Apart from furniture, the extensive range of products of IKEA includes lighting, textiles & rugs, Kitchenware, flooring, storage furniture, beds and mattresses tools and hardware. The IKEA Concept is based on offering a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them as mentioned in the website of Inter IKEA Systems B.V. --------------------------------- 1. The Local, Ikea hit by strikes in France, 14 February 2010, http://www.thelocal.se/24980/20100214/ (accessed April 19, 2005). The IKEA Concept guides the way IKEA products are designed, manufactured, transported, sold and assembled. 2 IKEA's business stra tegy hinges on sustainability and environmental design. The sustainability programs of IKEA envisage social, environmental and economic issues. Internal Environment Strengths and weaknesses of a company are mostly related to internal aspects. The internal environment of IKEA in terms of competitive advantage, market position and financial resources, is by and large conducive for a sustainable growth. Competitive advantage of a company arises out of several factors and the business plan which is very difficult to duplicate and the absence alternate products available cheaply enable IKEA to exploit the opportunities effectively and overcome the external threats. IKEA has established name for itself with designs, quality and competitive pricing in the markets world over. The company has been successful in leveraging its core competency in furnishing to a complete range of related or associated products ranging from flooring to lighting in its business by taking advantage of the externa l environment. Value creation and value addition has been a constant endeavor of the company through continuous introduction of new designs for keeping its position ahead of the competition. . Intangible resources are more difficult for the competitors to understand and replicate the models for catching up with a company in competition. Constant innovation is possible only when the invisible and intangible resources of the company are superior. For instance, special collection of home furnishings using recyclable or unusual materials is a novel idea in tune with the environmental awareness among the public. ------------------------------ 2. Inter IKEA Systems B.V., The IKEA Concept, http://franchisor.ikea.com/showContent.asp?swfId=concept2 (accessed April 19, 2011). The other special features internal environment in the case of IKEA are Modernized plants, global network for distribution, expansion in line with the globalization, balanced and efficient business model, innovative mark eting strategies, cost structure and organizational culture. For example, the relentless cost cutting exercises undertaken by IKEA has been one of the main factors which catapulted the company to its