Join Anil Gupta for an in-depth discussion in this video Superior value-chain architecture, part of Developing a Competitive Strategy.
- Compare IKEA with a traditional furniture retailer.…Let's say you want to buy a dining table and four chairs.…Chances are that the price of the dining set at IKEA…will be a fraction of what you would pay…at most other furniture retailers.…How does IKEA manage to do this?…The difference starts with IKEA's…approach to furniture design.…IKEA's furniture typically consists of only mostly…flat pieces designed in such a way that all…of the components of a chair, a table, a bed, desk…can be packed compactly in a flat cardboard box,…and with included instructions assembled by the customer…to create the finished product.…
Self-assembly by the customer means that IKEA…is able to completely eliminate the labor costs associated…with assembling the furniture in the factory.…Flat packing of the components also means that for IKEA,…the costs of shipping the flat boxes…across continents are minimal.…As a result IKEA can further ensure that…irrespective of where the customers are based,…the components can be manufactured…at the lowest cost locations in the world.…
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Skill Level Appropriate for all
Q: This course was updated on 08/19/2015. What changed?
A: Due to member demand, we've added three movies to take you even further into competitive strategy: Competing through disruption, Managing complementors, and Understanding industry dynamics