Ikea's success in the retail industry can be attributed to its vast experience in the retail market, product differentiation, and cost leadership.
Mission statement "Ikea's mission is to offer a wide range of home furnishing items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them (IKEA 1994)"
Culture "Ingvar Kamprad, believes that: "Most things still remain to be done - a glorious future! Time is your most important asset. Split your life into10-minute units and sacrifice as few as possible to futurities" (Mclvor, Laurance, 1994: 38)" + "simplicity and common sense should characterize planning and strategic direction (Bartlett et Al, 1993: 78) "
Strategy "suppliers are usually located in low-cost nations, with close proximity to raw-materials and reliable access to distribution channels" + "Ikea's role is not only to globally integrate operations and centrally design products, but also to find an effective combination of low cost, standardization, technology, and quality"
Theory "Michael Porter argues that an organization can enhance its competitive positioning by performing key internal activities in the value chain at a lower cost and better than its competitors (Bartol et al, 1993: 211). The value chain approach identifies two major activities- primary and secondary. Primary actives include production, marketing, logistics and after-sale functions. Secondary activities, on the other hand, are identified as support processes to primary activities. These include, firm infrastructure, Human Resource Management. Technology development, and procurement. The ultimate purpose of the firm is to add as much customer "value" in each of the primary activities (Pearce et. al, 1993: 184-187)." +
"strategies are:
