Ikea Essay

Ltd. is a piece of furniture operations telephoner that offers quick assembly furniture with 15% set out harm than its competitors. IKEAs success brought imitators, such as Sears. In value to analyze IKEAs war-ridden position in the Canadian article of furniture Industry as well as Sears competitive threat, a computer simulation of competitive rivalry was used. IKEA and Sears both compete against each other in multiple marts across Canada, they both have marketplace commonality and pick similarity.The Sears catalogue has almost the same format of an IKEA catalogue, and they both offer knock-down, self-assembled stock certificate products which provides the customers to create particular designs. In addition, the price for Elements products in Sears seemed almost superposable to IKEA prices. They both go closely to the supplier in marketing, research, design and development, issue standards and production planning. Some of the suppliers of the Elements line for Sears were from Sweden, which is the same as IKEA, but it didnt show that they had any suppliers in common.Its evidently that both of the market commonality and resource similarity are in truth high amid those two companies. The market commonality and resource similarity can sour the drivers of competitive behaviour. The awareness of IKEA to recognize the degree of imitation by Sears is very high. High awareness enables IKEA to understand the consequences of Sears actions and receptions. IKEA has a high motivation to answer Searss imitation. In order to protect IKEAs position in the furniture market, IKEA has a philosophy to dealing with the copyright.IKEA would like to make a new model to replace the stole one rather than involve a lawsuit. Furthermore, IKEA has the ability to attack or respond to Sears actions. Since they both triumph the similar resources, the ability to attack and respond is similar. IKEA should consider all alpha issues before taking action or respond to Sears. Fi rst-mover incentives, organizational size, and forest are the three factors that IKEA may take action to its competitors.As a first mover, IKEAs business approach was fundamentally different from the traditionalisticistic Canadian retailers. IKEA focus on quick assembly furniture and allow the customers assembled at home. Due to this reason, its price is 15% below the lowest prices for traditional furniture. The size of IKEA Canada is relatively small than Sears. The smaller size enables IKEA to launch competitive actions to defend their market position. The quality of IKEAs product can be guaranteed.As one of the competitive strategy, IKEA had nearly 100 production engineers to take to heart suppliers in every way to low costs, introduce new technology, and design. The company has a philosophy to create a better everyday demeanor for the majority of people. In order to defend its market position, IKEA may response Sears imitation in the following ways. IKEA may implement some strategic action, such as new innovation, to replace the stolen model from Sears.IKEA may rase its price, always by 10 to 15 percent on a particular item, than Sears. If IKEA cant do it, IKEA may just except the item and select some other one, to compete against Sears. Sears is one of Canadas largest merchandising operations, and offering a wide range of medium price and quality goods. IKEA can predict that Sears with relatively lower market dependence are less likely to respond strongly to attacks threatening their market position.