Internationalisation strategy – Porter’s value chain and VRIO framework, Yip’s internationalisation drivers and Global strategy

Ikea case study analysis
• Analysis is comprised of two questions which must be answered separately but on the same document

• You must ONLY analyse and evaluate and NOT be descriptive. Should not describe the theories and frameworks utilised in the analysisin-depth or any irrelevant descriptions from the case study (assume reader has knowledge on the theories).
• The introduction should be CONCISE

• All references must come from DISTINGUISHED books and journal articles only, in the Harvard style like the example below. A minimum, but notrestricted to,four for each question from secondary sources alongwiththe five references stated below in the questions section.
Holbrook, M.B. and Hirschman, E.C. (1982) “The Experiential Aspects of Consumption: Consumer Fantasies, Feelings, and Fun.” Journal of Consumer Research, 9 (2), pp.132-140, [Online] Available at: 15 November 2013)

• Word count is a minimum but not restricted to 2200 words, roughly 1100 for each question. Word countexcludestitle page, reference list (not in-text citations) and Appendices. Case study questions are also excluded from the word count and should be included in the appendices

Question 1:
Investigate IKEA’s business model and sources of competitive advantage as depicted in the case study. Why do you think it has been so successful in the fragmented furniture industry? What do you consider to be IKEA’s main weaknesses?
Mandatory inclusions:
1. Must analyse and evaluate utilising Porter’s generic business strategy of Cost Leadership as an underlying model. Cost Leadership model should also be referenced.

2. An Economies of scale and the experience curve graph should be constructed and included using the figures provided in the case study

Question 2:
With the use of relevant globalization and internationalisation models, analyse and evaluate IKEA’s internationalization strategy. What do you consider to be the key opportunities and threats facing IKEA at the end of the case?
Mandatory inclusions:
Must analyse and evaluate utilising below tools as an underlying analytical tool unless writer has conferred with me:

3. Porter’s Value Chain and its adaptation to the international value system using the VRIO framework

4. Yip’s Drivers of Internationalisation
5. (Four international strategies) with IKEA starting with aGlobal Strategy shifting to Transnational Strategy as it internationalizes

6. Three of the above tools should be referenced

7. Opportunities and threats should be stated in the context of a partial SWOT analysis
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