Ikea Essay Example for Free

Ikea EssayLtd. is a furniture operations company that offers quick forum furniture with 15% lower bell than its competitors. IKEAs success brought imitators, such as Sears. In order to analyze IKEAs competitive position in the Canadian Furniture Industry as well as Sears competitive threat, a pattern of competitive rivalry was used. IKEA and Sears both compete against each other(a) in multiple foodstuffs across Canada, they both have market commonality and vision similarity.The Sears catalogue has almost the same format of an IKEA catalogue, and they both offer knock-down, self-assembled downslope products which eitherows the customers to create particular designs. In addition, the price for Elements products in Sears seemed almost identical to IKEA prices. They both go closely to the supplier in marketing, research, design and development, end product 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 very high between those two companies. The market commonality and resource similarity can influence the drivers of competitive behaviour. The awareness of IKEA to certify the degree of imitation by Sears is very high. High awareness enables IKEA to understand the consequences of Sears actions and responses. IKEA has a high motivation to respond Searss imitation. In order to hold dear 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 maven rather than bring a lawsuit. Furthermore, IKEA has the ability to attack or respond to Sears actions. Since they both hold the similar resources, the ability to attack and respond is similar. IKEA should consider all important issues before taking action or respond to Sears. First-mover incentives, orga nizational size, and quality are the three factors that IKEA may take action to its competitors.As a first mover, IKEAs business approach was fundamentally different from the traditional 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 endorse their market position. The quality of IKEAs product can be guaranteed.As one of the competitive strategy, IKEA had nearly 100 production engineers to assist suppliers in every substance to low costs, introduce new technology, and design. The company has a philosophy to create a better everyday life 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 lower its price, always by 10 to 15 percent on a particular item, than Sears. If IKEA cant do it, IKEA may well(p) drop 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.