Strategic Management Analysis of Ikea Hong Kong

Strategic Management Analysis of Ikea Hong Kong

  • Submitted By: suikam
  • Date Submitted: 03/26/2011 10:09 AM
  • Category: Business
  • Words: 3035
  • Page: 13
  • Views: 17

Strategic Management Analysis of IKEA Hong Kong

In order to understand what strategic position and direction which IKEA takes in Hong Kong market so as to keep making successful business, it is important to conduct a strategic analysis of IKEA HK from internal, external factors to its strengths, weakness, opportunities and threats to evaluate this company.

To tide over the economic crisis, most of the HK home furniture business tends to “low price strategy” so as to gain market share, such as Pricerite, DSC.
However, under the vision of “create a better everyday life for the many people” IKEA HK well understanding how important of differentiation and the risk of only focusing on the “low-cost strategy” and that’s why IKEA put great afford on product development and build up the positive corporate images as “taking responsibility towards people and the environment” all these make IKEA HK becomes unique in the same industry sector in Hong Kong.

IKEA HK owns by The Dairy Farm Company Limited as franchisees run outside of the Dutch INGKA Holding to operate IKEA home furnishing retailing business in Hong Kong.
The mission of IKEA Hong Kong is to provide well-designed, functional and good quality home furnishing with low prices for as many people as possible to be able to afford them. They are now having 3 IKEA stores in Hong Kong which locates in Shatin, Causeway Bay and Kowloon Bay providing service for customer in the whole Hong Kong market. People could be shop in IKEA HK easily.

In order to maximize the profit to all stakeholders, IKEA not only doing cost leadership but also pays much attention on innovating their product to be more differentiation. Since 1956, IKEA using their great concept of “flat-packed” packaging and “self-assembly” which increased the track loading capacity, reduced the transportation, storage and labour cost, less fuel and exhaust pollution during each journey. It makes customer willing to carry the IKEA...

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