Ikea Strategic in Action
STATEGY IN ACTION
EVALUATING STRATEGIES
Part strategic position and strategic choice which mention above are underlining company environment, capability, and its strategy. Strategy in action will consider on how strategy act in organisation (Johnson et al., 2011a).This part of report will evaluate them considering their suitability.
Evaluation IKEA strategies regards Suitability
Suitability refers to the strategy is used to evaluate whether the strategies address the key 'opportunities’ and ‘constraints’ underlined by the organisation 's strategic position (Johnson et al., 2008). This criterion can be examined by checking the strategic options against the environment, capabilities and the stakeholder expectations. Therefore, the analysing of PESTEL, Five Forces and strategic capabilities of IKEA in section above will be helpful for evaluating and understanding suitability. It appears that suitability is used to evaluate whether overall rationale of strategy is suitable in terms of environment and capabilities and stakeholder expectations or not.
Therefore, this part of report not only evaluates IKEA strategies and capabilities regard in suitability but its successes and difficulties will be analysed. Firstly, from PESTEL analysis, IKEA takes advantage from ‘hybrid’ and ‘cost leadership’ strategy to response to its environment. IKEA’s products are cheap and differentiate; these are good opportunities to survive in economic recession. Additionally, IKEA’s core customers (middle class with moderate disposable income) are affordable to buy products even if in economic recession. Moreover, IKEA capabilities are strong global brand and low cost products with flat packaging which is its core resource and competence. Combining its capabilities and its strategies will benefit IKEA to achieve in environment changed and competitive circumstance.
However, the difficulty is about import issue. All IKEA normally sources products from the same places in order to keep
EVALUATING STRATEGIES
Part strategic position and strategic choice which mention above are underlining company environment, capability, and its strategy. Strategy in action will consider on how strategy act in organisation (Johnson et al., 2011a).This part of report will evaluate them considering their suitability.
Evaluation IKEA strategies regards Suitability
Suitability refers to the strategy is used to evaluate whether the strategies address the key 'opportunities’ and ‘constraints’ underlined by the organisation 's strategic position (Johnson et al., 2008). This criterion can be examined by checking the strategic options against the environment, capabilities and the stakeholder expectations. Therefore, the analysing of PESTEL, Five Forces and strategic capabilities of IKEA in section above will be helpful for evaluating and understanding suitability. It appears that suitability is used to evaluate whether overall rationale of strategy is suitable in terms of environment and capabilities and stakeholder expectations or not.
Therefore, this part of report not only evaluates IKEA strategies and capabilities regard in suitability but its successes and difficulties will be analysed. Firstly, from PESTEL analysis, IKEA takes advantage from ‘hybrid’ and ‘cost leadership’ strategy to response to its environment. IKEA’s products are cheap and differentiate; these are good opportunities to survive in economic recession. Additionally, IKEA’s core customers (middle class with moderate disposable income) are affordable to buy products even if in economic recession. Moreover, IKEA capabilities are strong global brand and low cost products with flat packaging which is its core resource and competence. Combining its capabilities and its strategies will benefit IKEA to achieve in environment changed and competitive circumstance.
However, the difficulty is about import issue. All IKEA normally sources products from the same places in order to keep