Ikea Case Study

IKEA Dr. Okan Geray Please read the IKEA eruptcome from the textbook and answer the fol crusheding questions 1. Explain, in detail, the aspects of IKEA dodge that make it a Hybrid outline. A hybrid strategy is where the costs atomic number 18 low and the perceived benefits are high. In the case it is mentioned that IKEA is not for the rich and flamboyant and for the smart and practical people. This is all the way seen with the designs where it holds common acknowledgement rather than cultural or national ideas.It blends into its piece of furniture styling and design with low cost and has large stores where they guide their customers and incline them towards secure certain crossways that are displayed. The styling and design is then supported by low cost, on request or immediate delivery, which allows them to not all buy the product immediately but also transport them without must hassles. The tied(p) packs allow logistical advantage and cost benefits and an informal infr astructure motivates the staff.The procural is very intense and brings cost benefits and is also widely spread out across the world with suppliers in China and Sweden and their head quarters are based in Norway for tax savings. In the above ways IKEA brings high benefits at lower costs to the consumer and on that pointfore is a hybrid strategy. 2. why is this strategy difficult for competitors to imitate? It is difficult for competitors to imitate because IKEA is a spherical furnishings comp some(prenominal) where as other competitors are highly focused into occurrence regions.This inaccessibility of its competitors limits its breadth of customer reach. Some of its competitors are not change surface specialised in furnishings but are more towards general stores there for specialisation benefits are lost. IKEA runs a strict cost cutting reckon where it focuses more on costs and lesser towards design IKEA not only does provide furniture but also provide furnishing solutions wher e it has different variants of products to suite customer needs. It is aware of customer needs and is able to provide that at the correct price and at the same instant.The informal hierarchy forms aleatory behaviour, which cannot be predicted, therefore cannot be imitated. 3. What are the dangers of a hybrid strategy and how can managers guard against them? There is a high risk that at once the customer base has been established companies tend to drift towards increasing their products and providing supererogatory services by charging extraly, even though this adds value to the product it alternately also adds costs which is directly against the policy of IKEA in this case.IKEA does provide additional services but with the optional additional charges which allows customers to choose cost savings Companies are also then inclined to reduce value but at the same historical price this lowers the perceived value of the product and pulls the company into the low cost category also ro bbing the company of its strategical advantage as a hybrid strategy player. Managers would need to receipt their hybrid strategy and their parameters that allow them to be in this category and inflict those parameters on the complete value chain.This does not imply to only the procurance and manufacturing of the products but also to the administrative aspects, such as seen with the CEO of IKEA UK. The conception of the product has been suited to the world market rather than specific market, this universal approach allows populations of different nationalities to relate to it, this collective design approach is a key factor in Ikeas marketing strategy and therefore any such products or designs favouring or resembling a particular culture incidentally should be disassociated and discouraged.