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Bus 400

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Submitted By kc082881
Words 1956
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Strategies

BUS499 Business Admin. Capstone
Aug 10, 2012
Strayer University

Introduction When a company chooses what type of business or corporate level strategy they want to use, this decision is important because it will set the tone for success or failure. Many companies will hire a manager to determine what type of strategy is best for the corporation. Other companies will already have something in place that just needs improvement. In order for a company to be successful with theses strategies they need to know what kind of competition is out there. A corporation’s competitor can usually dictate what strategy fits the corporation best. Once a corporation has figured out what strategies to use then they can move forward with building a successful firm.
1. Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion. The company that was chosen to be researched is IKEA. IKEA is a well known furniture retailer. IKEA was founded by Ingvar Kamprad in 1943 (ikea.com). Ingvar, at the age of five began selling matches to the local community. He then found out that he was able to buy matches from Stockholm in bulk at a cheaper price and sell it back at a lower price and still make a good profit. Ingvar’s entrepreneurial style brought him to the furniture business. He was able to build the furniture locally, close to his family farm. By having the local manufacturers produce his product designs, the price was kept very low. This enabled Ingvar to sell the furniture at a low price and still make a profit. This type of strategy is known today as cost-leadership. Cost leadership strategy involves the firm winning the market by focusing on and

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