Ikea Strategy: Global Expansion and Profitability
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Ikea
Strategy: Actions managers take to attain firm’s goals. Strategies focus on profitability (rate of return on invested capital) and profit growth (% increase in net profits over time). How to Increase Firm’s Profitability: Value must be created by consumer. Value creation measured by difference between price charged and cost of production. 2 strategies: Differentiation and low cost. Strategic Positioning: To maximize profitability firm must be efficient, configure internal operations, have the right organization structure (all must be consistent). Value Creation Activities: 1 Primary activities (creating, marketing and delivering product to buyers and providing support after-sale). 2 Support Activities (provides inputs that allow primary... Continue reading "Ikea Strategy: Global Expansion and Profitability" »