1 Applying game theory ideas from Section 7.3.3 to issues of
international strategy (Chapter 9),...

Question

1 Applying game theory ideas from Section 7.3.3 to issues of
international strategy (Chapter 9), how might a domestic player discourage an
overseas player from entering into its home market?

2 Identify where (in their value system) and how IKEA have achieved
cost leadership.

3 Identify how IKEA have achieved differentiation from their
competitors.

4 Explain how IKEA tries to ensure that their ‘hybrid’ strategy
remains sustainable and does not become ‘stuck-in-the-middle’.

5 How would you explain IKEA’s business model in terms of value
creation, configuration and capture?

Sana · Accepted Answer

1. Applying game theory ideas from Section 7.3.3 to issues of international strategy (Chapter 9), how might a domestic player discourage an overseas player from entering into its home market?
Answer: IKEA has mastered in Globalization. Globalization is a new term with the concept of global brands venturing into foreign countries with strategy keeping in mind the county’s social, political and economic nuances. A domestic player can discourage overseas player like IKEA from entering into home market by providing products as low as it’s competitors of not more. 
2. Identify where (in their value system) and how IKEA have achieved cost leadership.
Answer: IKEA’s value chain starts right from sourcing raw materials and manufacturing products. That is exactly from where it achieved cost leadership as it always targets cost-cutting by constantly looking for raw materials at lowest rates available. That is what enables them to offer the lowest prices in tise industry.
3.

1 Applying game theory ideas from Section 7.3.3 to issues of international strategy (Chapter 9), how might a domestic player discourage an overseas player from entering into its home market? 2...

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