Addressing the Various Activities Undertaken by The IKEA Company Discussion You can see the posts in the attached file. I’ve tried to pick shortest ones. T

Addressing the Various Activities Undertaken by The IKEA Company Discussion You can see the posts in the attached file. I’ve tried to pick shortest ones. This is important to understand this concept. We will do this DB post and reply thing every week together.These posts from my classmates. They wrote a DB post like you wrote for me. For the same time topic. Everyone writes their own posts and after that they write replies to their classmates’ posts. You can reply them with a personal experience of yours regarding that company they had selected, you can write your personal thoughts, you can write where you agree with them and why etc. You don’t have to mention their entire post, you can pick a part. But remember, these are your classmates:) Try to be nice and supportive:) Surname 1
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I’ve chosen to give my opinion on IKEA’s general business strategy. In my opinion IKEA is a
low cost provider. The sell quality furniture but are able to maintain low cost because they
save money by implementing efficient business processes that cut overhead. Many
consumers purchase from IKEA over other because of their low prices.
One of the main attractions is the fact that consumers can enter their warehouse and
purchase beds, dresser and so on same day to take home. Most competitor companies do not
offer same day take home items because purchases are made in a gallery and the purchase
request is then sent to a warehouse. Given the global climate however, IKEA could
potentially see a threat to offering low prices. With the global pandemic, social distancing
has decreased the number of consumers that are in store but also those that are spending
money. Instead the consumer focus is on paying bills and saving money. This would cause
IKEA to re-evaluate how they keep prices low/competitive. Another threat would be staffing
issues. Social distancing will decease the amount of staff they can have operating in their
warehouses. This can lead to slower turnaround times for delivery and packaging.
Overall, they would need to focus on their logistics strategy to determine the best steps
moving forward. Monitoring developments and revenue would be two starting points to
launch and supplement their altered strategy.
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For this week’s discussion post I am focusing on Aldi. Aldi is a German grocery store chain
that has experienced dramatic growth in the US, challenging giants such as Walmart and
larger grocery chains. Based on my interactions with Aldi I believe their strategy is to offer
high quality products at low cost. Aldi focuses on a key elements to drive efficiency so they
can pass on the savings to customers. Examples of efficiency gains include smaller stores,
limited inventory with mostly private label brands, and charging customers for
bags. Additionally, Aldi does not offer specialty services or departments such as
delis/bakeries or online ordering. By doing this they can keep their store headcount even
lower. By achieving lower costs, they have been able to maintain competitive edge that is
hard for competitors to match.
Internal or external threats could cause Aldi to re-evaluate or reinforce their current
strategy. An example of a recent external threat that I believe has caused Aldi to adjust their
strategy is the COVID-19 pandemic. The pandemic caused panic sending consumers into a
frenzy to stock up on food which impacted the supply chain resulting in shortages of many
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staple items. At the same time, consumers were advised to limit social interactions and
remain quarantined. Many of Aldi’s competitors were already supporting online ordering
with either curbside pick up or delivery. Given the conditions of the pandemic these options
were in high demand for consumers. As a patron of Aldi, I noticed shortly after the
pandemic that Aldi was advertising their delivery partnership with services such as
Instacart. A short time later, Aldi stood up their own online ordering platform with curbside
pick-up. Both of the delivery service and online ordering/curbside pickup are typically
outside of the Aldi strategy. However, to meet customer demand and stay competitive they
adjusted their strategy to incorporate these services.
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Tesla is a company with a different strategy and vision, unlike traditional car manufacturers.
The electric vehicle market is gaining more and more importance day by day. New
regulations, emission rules, technological developments make the electric vehicle industry
different than traditional car manufacturers. Tesla’s CEO Elon Musk launched the company
with the mission, “to accelerate the advent of sustainable transport by bringing compelling
mass-market electric cars to market as soon as possible.” This mission has served as the
backbone of Tesla’s very successful business model.
As a result of market researches and strategic planning studies, a business plan was prepared
and an R&D unit was established in line with this plan. The product strategy in this business
plan was different from the traditional strategies. Normally, a product with high volume
sales can be developed in the entry segment and after the promotion of the product, products
that will compete in other segments are developed, but unlike this approach, the Tesla
Motors team initially started from low volume but high profitability, in other words, it
started in reverse. In Tesla Motors’ public business plan: first, invest in a sports car
(Roadster), then settle on the market with a luxury segment car (Model S) and achieve high
profitability. With the revenue from this model, it is determined to produce SUV (Model X,
at the pre-order stage) and then to move to the mass market with a relatively economical
model.
Tesla Motors has developed a special retail strategy in the marketing industry. Tesla Motors,
which thinks that carrying out sales and service on dealerships will harm the brand, has
established its own showroom and service network. In addition, the company designed
mobile sales and service vehicles. Tesla Motors refuses to earn money from car service, and
in this context, there are no parts that need to change periodically, except for 4 tires, 2 wiper
blades, and 1 air filter. Tesla Motors will continue to transform the automotive industry and
set new standards. The company, which acts environmentally and society-oriented like
Nikola Tesla, is working for more effective use of sustainable energy resources as it was
prioritized. As a leading and innovative brand, Tesla Motors, which installed a goal for the
society, has enabled and ensured that its employees and the society around the brand with
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what they have achieved so far. Tesla Motors doesn’t actually sell you today’s car, it gives you
the future car experience. What it does is a high-tech, environmentally friendly gadget that
promises high performance. In addition, investors invest in what Tesla Motors can achieve
rather than achieved. Today, Tesla Inc. became the world’s most valuable automaker.
Tesla looks like an innovative and successful company, but the company faces some threats.
When Tesla was first established, electric cars were not as popular as today, and Tesla turned
this into an advantage. But today many large car manufacturers include electric and hybrid
vehicles in their product range. For example, Porsche launches the fully electric Taycan
model. Many large car manufacturers such as Ford, Volvo, Lexus, Volkswagen, and Toyota
introduced their hybrid and fully electric models, which poses a threat to Tesla in terms of
competition. It is also a threat for Tesla that Tesla is unable to keep up with the demands on
the production lines and fail to catch the targeted production figures.
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Subaru is a company that I have personal experience with, and one that has a sound business
strategy that sets it apart from its competitors. Subaru’s main strategy is offering more value
for the money, the “best-cost strategy.” When I went to purchase a vehicle in 2018, Subaru
stood out because it exceeded my expectations on features I was looking for like heated seats,
guided driving safety features, durability, and style all for a lower price than other brands I
was looking at like Toyota and Honda. It also offered incentives I was looking for – like a 0%
financing option. The company also drew me in due to a social responsibility program they
were running where they donated $500 to a charity I was able to choose from a list (“Share
the Love”). While I did not purchase my car based on that donation piece, it was a nice
touch that made me feel even better about my purchase. I believe that this best-cost strategy
has a sustainable competitive advantage over similar car companies. Subaru has built brand
loyalty with this strategy, and I have a friend who bought a Subaru after she saw mine even!
I do not hesitate to recommend my vehicle.
The car market is extremely competitive, and I am sure companies with a low-cost strategy
are an external threat as they improve their car features. At the time I was shopping for a
vehicle, I could not find a comparable car from Ford with all the features I wanted. However,
I do know Ford now does make mid-size vehicles now with the same features as my current
Subaru, and most likely at a lower price than what I paid. Subaru will have to add features,
while keeping costs down to maintain its market competitiveness, as well as maintain its
high quality. Subaru will just need to look to innovate further to maintain their strategy. I
do think the limited type of vehicles Subaru sells is a threat to their financial objectives. At
the time of purchasing my vehicle, Subaru did not offer any type of pick-up truck, which I
think is a very popular vehicle type in the US. They may need to expand their offerings to
stay competitive as tastes for certain types of vehicles gain popularity.
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Finally, I do appreciate that Subaru encourages social responsibility and does donate to
charities as you purchase your vehicle. I do think the values of the company, with their
“Share the Love” event that I participated in, do help stand it apart from it’s
competitors. This value should be something Subaru continues in the future.

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