Can Competitors Easily Duplicate IKEA’s Strategy?
IKEA is one of the top furniture stores in the world. They sell great products at a reasonable price. They create products based on the price they want to sell it for. Because of this, competitors have a hard time competing with this top furniture brand.
IKEA’s competitors might have better luck if they copy IKEA’s strategy. IKEA is determined to save money anywhere they can. They recycle materials, design their products themselves, and hire limited staff. It can be challenging to copy this strategy with the right resources.
One of these stores is Walmart. Walmart has all sorts of products. They sell food, electronics, furniture, and more. While Walmart is one of IKEA’s top competitors, it is not necessary for them to copy IKEA’s strategy. Their main revenue does not come from their furniture, so taking tips from IKEA is non-essential.
Amazon is another competitor of IKEA’s. Their strategy is similar. Instead of charged to assemble the products, they ship them out unassembled. This reduces costs. Other than that, they are an online shop. They don’t have a physical store, so their strategy strays from IKEA’s. In fact, Amazon has started selling some IKEA products, which helps both stores.
Wayfair is another store that competes with IKEA. They are a furniture store that also focuses on decor. It was founded in 2002 and has many of the same values as IKEA. They practice the same strategy as IKEA by offering quality discounts and selling products online. They also adopt the same idea of employment. They don’t need as many employees when the assembly is not a necessity. Wayfair is probably the store that uses strategies most similar to IKEA.
Yet another IKEA competitor is Sears. They have plenty of quality furniture at an accessible price. But like Walmart, Sears sells loads of products. Selling furniture is not their only business venture, so it’s unnecessary for them to use IKEA’s strategies. They value customer service, so they employ plenty of people who can deliver and assemble their furniture products.
These are only a few of many of IKEA’s competitors. Some use more of their strategies than others. Certain strategies are easier to mimic than others. Many stores adopt the policy to hire fewer in-store workers so they can make the products cheaper. Many also add a cafe, or place to get snacks so shoppers feel relaxed.
Other IKEA strategies are more challenging to achieve. IKEA prices their products before they make them. This is not attainable for stores that do not design their own products or don’t have the budget to cut down on cost. Many of IKEA’s strategies come from their ability to design their own furniture. Until other furniture companies adopt this same attitude, they will not be able to compete with the prices.
IKEA is a truly brilliant store with loads of creative ideas. Its competitors may have similar strategies, but none can mimic what IKEA does. Each store has its own plan of action that most suits it. Over time, IKEA will continue to perfect their strategy, as will other stores.