Kim and Mauborgne (2005, p. 25) state ‘The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. It serves two purposes. First, it captures the current state of play in the known market space. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what customers receive from the existing competitive offerings on the market. The horizontal axis captures the range of factors the industry competes on and invests in.’ Therefore a successful business strategy incorporates aspects such as extensive analysis of the market and takes notice of company and competitor data. A business strategy which is realistic and recognizes the required scale of development, most importantly a strategy based on business trends which can be implemented by the personnel associated with the company leads to business success. Corporate giants such as IKEA, Megabus and Cirque du Soleil are market leaders in their own fields and have successfully expanded the business by taking their products to newer sectors and newer geographic locations. They have also been successful by offering a new range of products and services to their existent clientele. Companies such as these often use business strategies for moving into adjacent markets. Market expansion is one of the key growth elements of business strategy, which helps the business to generate excess returns, improve retention of employees and ensure their objectives are met. Paul Fifield (2007, p. 217) quotes ‘Typically with relationships, it will take as long to fix as it took to be messed up in the first place.
The IKEA Marketing Strategy