The competitive strategy of the firm within the marketplace allows developing suitable and effective working function within the field. To effectively understand the various process of the key aspect of the competitive strategy the organization and the case of IKEA Corporation is being selected along with the corporate strategy to understand its application within the firm. The report also provides the effective view on the analysis of the firm also the working function that is being utilized by the firm within the market. The paper also provides the view of the strategies that are being utilized by the organization within the market.
IKEA is the furniture manufacturing company which is the Netherland based Swedish organization in the market (IKEA, 2018). The organization was founded in the year 1943 and by the year 2000 they have become the largest retailer of furniture in the world. The company in the current state is present in 44 countries all over the world and they provide ready to assemble products to the market which is quite innovative within the market.
IKEA is the furniture manufacturing company and they are having huge competition within the market. The organization design as well as sells the ready to assemble furniture within the market. The biggest competitor of the firm is Walmart, then the Wayfair, Sears, American Wood mark and so on. In the market, most of the company sell ready to assemble furniture to their consumers as it is durable and also easy to maintain in the household (Brewster, 2017). The level of competition for the firm is quite effective as it helps the firm to maintain their competitive advantages within the market. Competition well in the market is quite effective where the organization can effectively maintain their activity and their action for performing within the market. Like the organization, Wayfair is the company that sells stuff online and their primary products are the décor items as well as the furnishing items for the home. Then another competitor of the firm is Sear which is also considered to be the biggest competitor of the firm (Chung, and Kuo, 2018). The organization provides various furniture that is suitable for lawn, outdoor living, and garden and so on. In the level of competition, the organization is having an effective working function to maintain their competitive advantages within the field.
General environment segmentation
IKEA is having the general segment for performing their task within the market in the most suitable and effective way. It can be seen that the organization in their demographic segmentation maintain the elements for the low household income, then the large population size along with the dense population and the large income gap (Grant, 2016). In the economic segment that has provided an effective view of the fast-growing condition then regulation as well as FDI policies issues within the political segment and so on. It is efficient for the business to uphold their action in the field of Australia and deliver valuable operational function. Proper segmentation in the field allows the firm to uphold their competitive dynamic skill in the marketplace and also it is essential to develop effective knowledge for the firm (Ferreira, Santos, de Almeida, and Reis, 2014). It is clear from the demographic segmentation and other segmentation of the firm that they effectively utilize the corporate strategy in their field.
General environment segmentation in the field helps the firm to maintain their mission and vision as well as the corporate goal of the firm in the most effective way. The corporate strategy regarding the brand position helps the firm to preserve their operational utility inside the arena and also help them to segment according to the brand position (Rugman, and Verbeke, 2017). For example; Lexus, as well as Rolex, maintain the brand position of the luxury brand for their corporate business strategy and for that their target market is the people with high-income level and also the sophisticated consumers. It is reflected that the association have effectively improved their operating cost along with the cost of sale within the market. This is the basic function that helps the firm to open new market within a various international market.
The international corporate level strategy of IKEA
The international strategy allows the firm to sell their services as well as their products to the international market. IKEA also pursue the effective international corporate strategy to improve their competitiveness within the market. It can be seen that the international market help to bring new opportunity for the firm (Liu, and Atuahene-Gima, 2018). This is the vital reason that the organization uses the international strategy to expand their business. With the help of the international strategy at the corporate level, the organization can effectively secure their resources within the market. It can be seen that IKEA is the largest retailer of furniture in the world and for that, they need huge resources that also at the lowest possible price (Samli, Kaynak, and Sharif, 2015). The corporate strategy in the international market allow the firm to gain their opportunity and due to this, the competitive effectiveness is being developed within the business.
The international corporate strategy also helps in the growth of the firm in the global market since 2001. The organization maintains the global corporate strategy for performing their activity within the field that helps them to maintain their working function. For example; Walmart uses the global corporate strategy in their business to expand their trade and also to get the effective opportunity for the growth of the firm. Like the company Walmart the organization, IKEA also performs the same activity to maintain their growth level within the market. The competitive advantage that is maintained by the firm is to provide the furniture in the flat package to reduce the space and also the cost of delivery (Cusumano, Kahl, and Suarez, 2015). This is one of the most suitable corporate strategies that is being followed by the firm to uphold their movement within the field. The organization also need to develop their activity in the international market with the effectiveness and their work.
International mode of entry
International mode of entry into the global market is effective for the firm in order to boost their desired growth and productivity (Nagle, Hogan, and Zale, 2016). The most suitable and the effective market entry mode that is being utilized by the organization is wholly owned subsidiary as provided within the case study. This helps the company to build their retail space within the market and also to implement the international corporate strategy within the field (Prajogo, 2016). This situation has various advantages as well as disadvantages within the market for the firm and IKEA maintained working performance within the field. The global corporate strategy is effective for the firm when they are facing huge pressure from the market to reduce their cost along with the week pressure for providing effective response locally. This strategy allows the firm to retain their growth within the global market.
The implication of the corporate strategy within the field provides suitable and effective working function within the marketplace to deal with the working function in the marketplace. It is evaluated that the firm with the suitable and actual global corporate strategy can effectively maintain their working function within the market. For example; Ford maintains the wholly owned subsidiary in the global market and for that, they get effective marketing benefit within the international market that is effective for the enterprise. The organization IKEA is also having an effective working function within the market where the corporate level strategy is being performed to maintain their activity in the field (Quer, 2015). It is the most effective and the suitable process that allows the organization for maintaining their activity in the field and to deliver the product to the market. The business process of the firm is quite effective to preserve the movement of the enterprise in the international market.
Strategies
The association IKEA is facing huge challenges within the international market where they are facing the issue of availability of the retail space along with the cost of the market. Then the organization is also facing issue regarding supply chain as well as the hiring the employees and so on. The organization is performing a various working process within the firm and for that, they are having effective business in the field of international market (Johnson, 2016). The corporate strategy that is being utilized within the organization effectively help them to continue their operation in the arena and offer valuable communication for the process. According to the implementation of this strategy within the firm and from the view of case it is identified that the association is having two choices concerning their retail space within the market. With the application of the corporate strategy in the field, that IKEA has developed suitable and effective working function within the market. It is critical for the firm to perform their movement while maintaining their mission and their vision strategy within the market. This is one of the most effective strategies for the firm to perform their activity within the field (Andersen, and Andersson, 2017). With the help of the corporate strategy, the firm has the ability to hire suitable employees for the firm as well as to negotiate with the vendors of the firm. It is the most effective and the suitable way to perform their activity within the field for performing the various job.
The organization primary follows the vertical integration as their corporate strategy for the field. In this, the firm has the successful corporate strategy for the development of products as well as marketing process within the firm (Mollan, and Tennent, 2015). It can be seen that the firm is having most suitable and effective working function in the field with the help of vertical integration in the international market. For example; gas station organizations are effective in the field for acquiring the oil refinery. Another example is that the food industry maintains their corporate vertical integration strategy in the most effective way by providing valuable and integration process within the firm. It can be seen that the firm to maintain their activity in the field. The corporate strategy in the international market is quite effective for the firm to maintain their activity in the field and to provide the valuable working process for the firm. The working process of the firm in the international market provides the valuable working function to uphold their activity and the working function within the field. It is reflected that the firm is having an effective work within the market. IKEA needs to maintain their working function in the international market for maintaining their effective working function within the field to deliver the vital operational process within the market (Purce, 2014). The case study provides the effective view of the firm working function in the international market to understand their value and their production level.
Conclusion
The paper eventually concludes the facts that the organization maintains the corporate strategy in their most of the working process. It clearly indicates that the success of the firm is due to the utilization of the process in the market. Moreover, the product and the presentation level of the firm along with their growth are directly affected by the international corporate strategy within the field. It clearly concludes the fact that the business gets suitable opportunities with the utilization of the international corporate strategy in the market and the business process.
References
Andersen, T.J. and Andersson, U., 2017. Multinational Corporate Strategy-Making: Integrating International Business and Strategic Management. In The Responsive Global Organization: New Insights from Global Strategy and International Business (pp. 13-34). Emerald Publishing Limited.
Brewster, C., 2017. The integration of human resource management and corporate strategy. In Policy and practice in European human resource management (pp. 22-35). Routledge.
Chung, H.F., and Kuo, T., 2018. When and how managerial ties matter in international competitive strategy, export financial and strategic performance framework: A standardized or customized approach?. European Journal of Marketing, 52(1/2), pp.260-278.
Cusumano, M.A., Kahl, S.J. and Suarez, F.F., 2015. Services, industry evolution, and the competitive strategies of product firms. Strategic management journal, 36(4), pp.559-575.
Ferreira, M.P., Santos, J.C., de Almeida, M.I.R. and Reis, N.R., 2014. Mergers & acquisitions research: A bibliometric study of top strategy and international business journals, 1980–2010. Journal of Business Research, 67(12), pp.2550-2558.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
IKEA. 2018. IKEA.com – International homepage. [online] Available at: https://www.ikea.com/ [Accessed 28 May 2018].
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Liu, W. and Atuahene-Gima, K., 2018. Enhancing product innovation performance in a dysfunctional competitive environment: The roles of competitive strategies and market-based assets. Industrial Marketing Management.
Mollan, S. and Tennent, K.D., 2015. International taxation and corporate strategy: evidence from British overseas business, circa 1900–1965. Business History, 57(7), pp.1054-1081.
Nagle, T.T., Hogan, J. and Zale, J., 2016. The Strategy and Tactics of Pricing: New International Edition. Routledge.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in delivering business performance. International Journal of Production Economics, 171, pp.241-249.
Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.
Quer, D., 2015. International Corporate Strategy and Management. Unit 6: Strategies in Emerging Markets. Estrategia y Dirección Internacional de la Empresa.
Rugman, A. and Verbeke, A., 2017. Global corporate strategy and trade policy. Routledge.
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