Ikea strategy. Международная стратегия компаниии икея

 

Second approach in corporate strategy that IKEA uses is outsourcing. Strategic outsourcing is the decision of IKEA to allow one or more company to perform specifically or selected value chain activities or function by independent specialist companies that focus all their skills and knowledge on just one kind of activities. According to available information IKEA now outsource 90% of their product and rest 10% produce internally.Outsourcing has brought 2 huge benefits for IKEA. 

 

1.  Low cost structure. Vertical integration has been cut IKEA’s cost structure because it creates increasingeconomic of scale. Achieving economic of scale is very important of IKEA because it has a high fixed cost structure. In furniture industries allows IKEA to spread its fixed cost over its large volume of production and in this way it drove down IKEA to average cost per unit.

 

2. Focus on the core business. Second advantage of strategic outsourcing for IKEA is that it allows managers to focus their energies and company resources on performing those core activities that have the most potential to create value and competitive advantage.

 

The third thing in IKEA’s corporate level strategy is active papricipation in charitable and environmetial aspects of society life.

Charitable giving. IKEA is involved in several international charitable  causes, particularly of the IKEA in partnership with UNICEF.  For example, that are:

 

• In the wake of the 2004 Boxing Day Tsunami, IKEA Australua agreed to match dollar for dollar co-workers donations and donated all sales of the IKEA Blue Bag to the cause.
• After the Pakistan earthquake of 2006, IKEA gave 500,000 blankets to the relief effort in the region
• IKEA has provided furniture for over 100 "bridge schools" in Liberia
• In the 2008 Sichuan earthquake in China, IKEA Beijing sold an alligator toy for 40 yuan (US$5.83, €3.70) with all income going to the children in the earthquake struck area
• IKEA also supports American Forests to restore forests and reduce pollution.

 

Social Initiatives.  In 2005 year IKEA started its participation in social involvements on a global level. Examples of it is:

 

• IKEA contribute 1 euro to UNICEF and Save the Children from each soft toy during the holiday seasons and has gained abou 17 million so far.
• IKEA Social Initiative provided soft toys to children in cyclone affected Myanmar.
• From 2008 year IKEA donates one Sunnan for every solar-powered lamp sold worldwide.

 

Environmental Impact.  IKEA shows to the society that it really cares about environment and supports green trend. We can see it from several examples and measures taken by IKEA below:

• Replacing polyvinylchloride (PVC) in wallpapers, home textiles, shower curtains, lampshades and furniture—PVC has been eliminated from packaging and is being phased out in electric cables;
• minimizing the use of formaldehyde in its products, including textiles;
• eliminating acid-curing lacquers;
• producing a model of chair (OGLA) made from 100% post-consumer plastic waste;
• introducing a series of air-inflatable furniture products into the product line. Such products reduce the use of raw materials for framing and stuffing and reduce transportation weight and volume to about 15% of that of conventional furniture;
• reducing the use of chromium for metal surface treatment;
• limiting the use of substances such as cadmium, lead, PCB, PCP, and Azo pigments;
• using wood from responsibly managed forests that replant and maintain biological diversity;
• using only recyclable materials for flat packaging and "pure" (non-mixed) materials for packaging to assist in recycling.
• introducing rental bicycles with trailers for customers in Denmark.

 

Also IKEA has stopped providing plactic bags to customers, but offers reusable bags for sale. In IKEA restaurants you could find only reusable olates, knives and forks. Even more toilets in many IKEA stores  have been outfitted with dual-function. All of this proof that IKEA is an active participant in social and environmential aspects of life and it’s a part of a corporate level strategy.

 

 

 

IKEA is a well-known global brand with hundreds of stores across the world. In order to improve performance, it must assess its external and competitive environment. This will reveal the key opportunities it can take advantage of and the threats it must deal with. IKEA responds to both internal and external issues in a proactive and dynamic manner by using its strengths and reducing its weaknesses. Through this, IKEA is able to generate the strong growth it needs to retain a strong identity in the market. IKEA's passion combines design, low prices, economical use of resources, and responsibility for people and the environment. The company's products, processes and systems all demonstrate its environmental stance. For example, clever use of packaging and design means more items can fit into a crate, which means fewer delivery journeys. This in turn reduces IKEA‘s carbon footprint.