Business Model and Competitive Strategy of IKEA

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Business Model and Competitive Strategy of IKEA
IKEA furniture Stores in India has adopted the best business model towards winning the market segment. Therefore, before capturing India as their new market in 2001, the corporation analyzed furniture across several and different household in India. This analysis has been crucial in determining the consumer needs of furniture products (Abdul, “Business Model And Competitive Strategy Of IKEA In India|Business Strategy Case Studies”).
First, the Middle-class families in India prefer customized furniture with unique designs. IKEA store has used this strategy towards capturing unique designs for customers in India. In this case, IKEA has a robust research and Development skills essential in the innovative design of furniture products. Secondly, IKEA has experimental marketing skills which consist of studying the customers’ psychology. For this case, Indians prefer getting involved in the design process of a furniture product. The third business strategy entails capturing appropriate demographic. In this case, IKEA store is attracted by the middle-class families with the concept of enticing them to their furniture products (Abdul, “Business Model And Competitive Strategy Of IKEA In India|Business Strategy Case Studies”).
Additionally, IKEA involves them in the design and production process of furniture to enhance the satisfaction of their clients. The fourth element is that IKEA Stores have large and well-designed showrooms to offer a good impression to the customers and appeal for customers to go through all the products and identify the best product.

It is worth noting that India is the best market for furniture products since the country is rich in artistic and handicraft woodwork. In 2010, the wood product was estimated at RS.700 billion (Abdul, “Business Model And Competitive Strategy Of IKEA In India|Business Strategy Case Studies”).

Work Cited
Abdul, Syed. “Business Model And Competitive Strategy Of IKEA In India|Business Strategy Case Studies”. Icmrindia.Org, 2018, http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/BSTR445.htm. Accessed 20 Oct 2018.