Master of Business Administration
STRA 703- Strategic Management
Prof. Dr. Thomas Diefenbach
, Mona Mansour
And Passant Fouda
Table of Contents
Introduction about IKEA
How the concept IKEA Began
IKEA concept, Mission and Vision
The main reason behind IKEA
The Main Strategic Problem in IKEA
PESTAL Analysis of the Macro- Environment
Political and legal Side in Egypt
Egyptian Socio-Cultural environment
Porter’s five forces Model
IKEA Resources, Competences and capabilities
IKEA Competences and capabilities
The Following Strategies would be great for IKEA:
IKEA’s Current Strategic Position
Ansoff’s Product/ Market-Matrix
To Target new segments for example; Resorts and hotels not only good Standards people and expatriates.
IKEA should perform detailed Market research and studies of individual market tastes and get a feel for its Unique Customer.
1. Introduction about IKEA
What would be considered a great idea in the era of furniture? A dream of many customer would be high quality products and low of prices for these product because in the old days, you either got high quality and paid its share or went for cost but suffered low quality. Following the idea of his own Smaland province, Ingvar Kamprad invented the IKEA concept. Why not make the most out of limited resources? That is what Ingvar decided to do. By following in the footsteps of his fellow Smalandians, he decided to work hard, live well and make the most out of limited resources. In 1940s, after applying what he learned in the furniture business, IKEA was born. From the initials of his name and the place where he grew up, IKEA now owns more than 300 stores in more than 35 countries and has a workforce of more than 130,000 workers in order to bring to the world a functional, great quality and much lower price than competitors’ furniture. In this paper, we would discuss the political, economic, environmental, strength, weakness, threats, opportunities, technological, and legal aspect of opening IKEA here in Egypt and why we believe it is a good idea for IKEA to open in the Egyptian market. We would then make recommendation for IKEA and also analyze IKEA concept further in relation to being an international company.
2.1. How the concept IKEA Began
The IKEA Concept began when Ingvar Kamprad, an entrepreneur from the Småland province in southern Sweden, had an innovative idea. In Småland, although the soil is thin and poor, the people have a reputation for working hard, living frugally and making the most out of limited resources. So when Ingvar started his furniture business in the late 1940s, he applied the lessons he learned in Småland to the home furnishings market.
Ingvar's innovative idea was to offer home furnishing products of good function and design at prices much lower than competitors by using simple cost-cutting solutions that did not affect the quality of products. Ingvar used every opportunity to reduce costs, and he scraped and saved in every way possible - except on ideas and quality. This is how the IKEA Concept began. The name IKEA comes from the initials of Ingvar Kamprad, I and K, plus the first letters of Elmtaryd and Agunnaryd, which are the names of the farm and village where he grew up. Today, the IKEA trademark represents the leading home furnishings brand in the...
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