Ikea Strategy in Egypt

3888 words 16 pages
Z
Master of Business Administration
IKEA Company

Term Project
STRA 703- Strategic Management
Presented to
Prof. Dr. Thomas Diefenbach

by
Merham Yousri
, Mona Mansour
And Passant Fouda
Table of Contents 1. Introduction about IKEA 4 1.1. How the concept IKEA Began 5 1.2. IKEA concept, Mission and Vision 6 1.3. The main reason behind IKEA 6 2. The Main Strategic Problem in IKEA 7 3. PESTAL Analysis of the Macro- Environment 7 3.1. Political and legal Side in Egypt 7 3.2. Egyptian Economy 9 3.3. Egyptian Socio-Cultural environment 10 4. Porter’s five forces Model 11 5. IKEA Resources, Competences and capabilities 11 5.1. IKEA Resources 11 5.1.1. Financial resources 12 5.1.2. Physical resources 13 5.2.
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As such similar chains have showed a tremendous success in Egypt. Egyptian people always seek low prices; as most of them have low purchasing power and have different facilities in the shopping place.
When Ikea compare its strategy to similar companies with same condition, the benchmarks can be generated from such comparison depending on similar obstacles and risks to be overcome. Beside, Ikea can evaluate its benchmarks success by customer satisfaction, volume of sales, profitability, product repurchasing.
On the other side, if the benchmarks were not met, Ikea can change its strategy from global to multi-domestic after studying the needs of the Egyptian market and satisfy its demand. 2. The Main Strategic Problem in IKEA

IKEA has not Been Proactive in Accepting the Specifics of new market and Tailoring some of its products to satisfy Local Market. 3. PESTAL Analysis of the Macro- Environment

4.4. Political and legal Side in Egypt

Egypt political stability plays an important role in attracting investments as investors look for minimum political risk where it is the likelihood that political forces will cause unexpected and drastic changes in a country’s environment that significantly affects the opportunities and operations of a business enterprise.
To assess Egypt’s political risk, first we should study the relative power of the dominant groups. Egypt’s political system is

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