BUSINESS LEVEL STRATEGY:

IKEA
Summary written by: Zubair Ahmed Memon

Link: https://www.ukessays.com/essays/marketing/generic-business-level-strategy-of-ikea-marketing-
essay.php

Submitted to:
Sir Adnan Kehar
The business level strategy, IKEA has adopted is to grow by delivering different styles of furniture
with low prices to a particular market segment i.e. young population. IKEA is successful to
implement the strategy due to relationship with supplier, and providing quality. IKEA want to
expand in new markets worldwide and offer variety of products with a focused cost leadership
strategy.

Focused cost leadership strategy:

IKEA believes in offering products with low prices to younger people with middle income who
desire to have stylish furniture at low price. Due to its focused cost leadership strategy IKEA is
able to capture huge customer base around the globe.

IKEA's product are considered to have more value due to their quality at a low price and this is the
one the important reason that customers are attracted to products and competitors are unable to
offer more quality at a competitive price.

IKEA is successful in its focused cost leadership strategy due to its alliance and partnership with
its suppliers that allows IKEA to offer better products in the market. They also outsourced some
of their manufacturing to some cheaper countries such as Poland which help them to reduce in cost
and better quality of product.