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M10d Challenges sustaining competitive Advantage

M10d Challenges sustaining competitive Advantage

Q IKEA is the world’s most profitable global retailer, currently operating in over 30 countries and territories around the world. Despite that success, the firm faces a significant set of challenges towards sustaining its competitive advantage(s). For this discussion here is what I would like you to do: • Read and review Chapter 10 of the Rothaermel text paying special attention to the Chapter Cases (p. 339 & 367), along with the M10 Content Guide. • First, create a post that analyze the major set of challenges to competitive advantage(s) that IKEA is dealing with. o Be sure to include several recommendations for addressing these challenges. • Next, in your responses to fellow classmates work to refine recommendations to help IKEA to sustain competitive advantage. Discussion Instructions Please post a response of at least 250 words and respond to the postings of at least two of your classmates with a minimum of 100 words. My hope is that our discussions would mimic those that would take place in an actual classroom. When posting your thoughts, you want to encourage feedback and involve your classmates as much as possible. In the end, we want to be responding and feeding off each others postings. If you use a source, be sure to discuss it in your own voice. Make sure to cite correctly and use quotation marks when necessary to ensure you do not violate Academic Integrity. Please refrain from sharing unsubstantiated personal opinions not based upon fact and/or experience. For assistance on finding reputable sources review Research and Library Tips. For further explanation on how you are graded please review the Discussion Rubric.

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The major challenge to competitive advantage for IKEA to deal with is to sustain and continue offering products and services of the organization at low and competitive prices. If lower prices are continued to be offered to customers even in the current pandemic situation, there can be great losses because of low sales percentages for IKEA. There has to be raising of prices to a specific percentage to ensure that profit percentages can be kept consistent with low sales volumes but higher profit margins per product sold by the organization. Cost efficiency can also be a challenge for IKEA because there can be rise in the prices of raw materials in the current pandemic situation.