Generic Strategies followed by IKEA . Academia.edu is a platform for academics to share research papers. IKEA’s competitive advantage. IKEA achieves competitive advantage under the cost leadership strategy by producing at the lowest possible cost. McDonald’s, and IKEA. Competitive advantage in the Marketing strategy of IKEA – Coordinating with designers across the world and testing their ideas so as to provide the growing home furnishing needs is one of the biggest advantages that Ikea has over other players in the markets.. Wide-range, artistically designed, eco-friendly and affordable furniture at low cost will always be the driving force for the company. The sustainable competitive advantage created by this alignment is centered on scale and access. Amazon has recently launched its furniture brand – Rivet and Stone & Beam and will serve as Amazon’s first-ever home furnishing brand. It would be difficult for any competitor to match their scale in production and distribution. Amazon started a free shipping policy for both the brands. Advantages And Disadvantages Of Ikea Strategy. IKEA operates 42 plants around the world and has more than 300 stores globally. chapters including Service Drivers and Productivity, Location Strategy, Layout Strategy and Human resources and Job Design are covered. Ikea Competitors Analysis. Without further due let us discuss top ikea competitors. The combination of these goals are labeled by IKEA as “democratic design” and is what they believe gives them a competitive advantage. What follows is a discussion of the generic and intensive strategies that IKEA has used to generate competitive advantage and grow its brand presence globally. In my previous article, I have performed Ikea swot analysis, if you are interested give it a try. The Generic strategy followed by IKEA is a mix of cost leadership and differentiation. The IKEA design process is based on studying actual homes and then working to combine quality, form, function, sustainability, and of course low price. In August of 2012 my husband who lives in Savannah and I decided that we needed to move to our own place. Walmart has achieved competitive advantage by using the low cost provider strategy and providing consumer products at lower prices. Amazon. IKEA’s core advantages For our 2/2/2013 Operation Management class we did a case study on IKEA and had to write a one-page paper answering 4 questions. These firms have achieved competitive advantage. Walmart’s slogan “Save Money, Live Better” shows the company’s strategy. I thought you may be interested, if I shared it with you. Wherever possible, under this strategy IKEA will reduce costs at every stage of the value chain and either charge lower prices or charge competitive prices … I love IKEA!