IKEA (Canada) Ltd.- 1986 (Condensed)
(10 pages of text)
The mid-1986 Sears new catalogue contained a 20-page section called Elements. This section bore a striking resemblance to the format of an IKEA catalogue, and the furniture being offered was similar to IKEA'S knocked-down self-assembly line. The head of IKEA'S North American operations wondered how serious Sears was about its new initiative and what, if anything, IKEA should do in response.
This case can be used in a Strategic Management course. The IKEA-Sears Business Systems are presented in sufficient detail to provide the opportunity for a good understanding of how competitive strategies vary. Sufficient data exist on both companies to construct preliminary value chains. Students will develop an appreciation of how firms develop competitive advantage in different areas, and how vulnerable they might be to direct competitors attempting to overcome any disadvantage.
Canada/Sweden/USA, Large, 1986
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