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Strategy Context Report: IKEA Executive Summary IKEA has always been known for its convenient and stylish furniture range at affordable prices and also offers customised services to the customers.In spite of the bleak prospects of the furniture industry IKEA has been generating decent amount of profitability.Countries differ from each other in many aspects for which the management of a multinational company must decide if such differences are substantial enough to be reckoned.
In simple terms, globalization refers to exposure of global giant firms like IKEA to an enhanced global cognizance and interdependence.
IKEA, the business of retail home furniture and house ware worldwide, is frequently used as a good example of an organization that has a speedy internationalization process and is seen as a king of globalization as compared to many other local rivals in the furniture industry (Hollensen, 2007).
IKEA offers more than 9000 products which can be divided into four "Style groups": Traditional, Scandinavian, Modern, and Popular.
The company's vision is "to create a better life for the many", according to one executive (Collins, 2011).
It can also be defined as the process of stimulating and speeding international integration of markets that ensues an integrated global market in absence of national economic borders.
In distinction from others, the economic visibility of globalization incorporates the development of global corporations and global networks; the far-flung ...?The company’s global expansion is forced by the founder’s “intuitive quest for new opportunities” and a history of successful collaborations with worldwide suppliers (Grol et al 1997, p.93).Theoretical framework Economic globalization is the worldwide integration of economies by trade and investment flows, and the production of goods and services as well, in order to increase and intensify international competitiveness.Many different areas of research focus on the change that is required according to their perception of importance of this change.First focus of great importance is on nation states, and competitiveness and comparative advantage related to them.The purpose of this paper is to analyze and demonstrate as to why and how the IKEA has traded globally, and what strategies the company has formulated and implemented in order to respond to actual and potential impacts of globalization.According to IKEA cardinal activities such as eating, sleeping, storing items, socializing etc necessitate furniture and practical products that solve crucial human needs.The second major focus is on the establishment and administration of industrial companies, which refers to the establishments associated with mass production systems, and has undergone a decline and more pliant forms of industrial organization have demonstrated successful.A third focus is on the changing dynamics of competition among different organizations (Barlett and Ghoshal, 1998).These included 1) Multinational furniture retailers: These retailers had operations in various countries and the US market constituted one part... IKEA has become much more than a furniture merchant, it embraces customers with lifestyle that embraces good taste and recognizes value.The company has thrived in the global market where others competitors have not succeeded in penetrating.