Current Strategy of Ikea Essay Example | Topics and Well Written Essays - 500 words

Current Strategy of Ikea - Essay Example This paper puts into perspective the various current strategies employed by IKEA. IKEA’s current strategy is focused on low cost of operations. Case in point is that the company assembles most of its products on a self-assembly basis. This strategy is critical for the company because it helps in cutting transportation and operational cost. The company also uses the strategy to focus on the middle class on each segment of the market (Palepu et al., 2012). IKEA has a strategy that has immense cultural orientations. Case in point is that the company’s advertisement program has attention catching elements that make its products salable to a wide range of customers. Essentially, IKEA does not focus its attention on the mass market, but rather concentrates on marketing approaches that target individuals. The market in the current dispensation is increasingly competitive, and IKEA has sought to establish mechanisms that can ensure continual relevance in the market. Ideally, the company’s current strategy is more quality oriented (Elliott et al., 88). Quality defines the products that a company deals with and fundamentally distinguishes it from the competitors. IKEA has become bullish in the market due to its quality furniture that is characterized by uniqueness. Another current strategy that IKEA focuses on is the diversification of its products (Elliott et al., 212). The Company does not just focus on the mainstream furniture products, but also concentrates on childrens products. Additionally, the company produces customized products for its clients as a consequence of meeting their needs and expectations. IKEA has an advertisement strategy that has limited orientation in the international market (Daft et al., 234). Case in point is that the promotional strategy adopted by IKEA is based on catalogues. The current strategies that have been adopted by the company have