BUSINESS STRATEGY

IKEA's Industry Structure with 

Michael Porter's Five Forces Model:

Force	Force Strength	Reasoning
Bargaining power of customers	Low	IKEA has the ability choose their price to sell their products
Threat of substitutions	Medium	Companies like Wayfair with online stores are slowly gaining an advantage over IKEA
Bargaining power of suppliers	Medium	IKEA was ranked 46 on Forbes valuable brand list
Threat of new entrants	High	IKEA's competitive advantage allows the company to dominate over furniture stores, small local businesses
Rivalry	Medium	Places like Walmart, is also able to sell furnitures for cheaper prices

Competitive Strategy:

IKEA’s company strategy is strictly being a low-cost and industry-wide company. IKEA is the one of the world’s largest furniture retail company, containing more than 300 stores, and 30 franchised units worldwide, making it an industry-wide company. IKEA strives to become a cost-effective company that believes every individual deserves good quality home furnitures, at a low price, for every individual.