critically evaluate IKEAS and DELLS core strategy and duscuss these from porters generic strategies perspective

In Practice IKEA and Dell IKEA and Dell are two very successful organizations in their industries. What is it that sets them apart from the competition? IKEA combines stylish furniture with affordable prices. In order to deliver this unique proposition, it innovated how furniture is displayed in the showroom furniture is shown in mini-room displays, creating ideas about how it could be used, which inspires people), IKEA gave away attractive catalogues full of IKEA products that you could linger over at home and imagine how useful or beautiful they would be in your environment; IKEA saved money on warehousing through flat-packing its furniture; it created an aura of Swedish wholesomeness and practicality by its naming strategy - who had ever thought of calling flat-pack shelves Billy? Additionally, IKEA makes its customers a partner in the fabrication of the furniture; it is the customers who have to put the flat-pack boxes together at home. It also added some services, such as childcare facilities and the IKEA restaurant where the whole family can relax over a cheap meal and experience a little imagined Sweden with their soused herrings or meat balls, IKEA is an example of what Michael Porter calls strategic positioning, i.e. 'performing different activities from rivals' or 'performing similar activities in different ways" (Porter, 1996:62). Positioning concerns the adoption of a unique and vlluable stance, exactly what IKEA does. Could a competitor copy IKEA? Yes, you could build a company from scratch that is modelled on IKEA. But it would be a risky business lacking the learning and experience that IKEA has gained since it opened its first stora in 1958 in Sweden. How about companies that are already in the furniture business - could they not simply imitate IKEA? Yes, but this means they would have to give up their current showrooms, their spacious warehouses, break contracts with their suppliers, retrain their staff and so on. They might as well start a business from scratch! Dell on the other hand, is a classic example of a company that produces goods at a low cost, derives profits from economies of scale and has a distinct competitive advantage because it can undercut its rivals predominantly on price. Dell's success is due to the company's famous build-to-order direct sales business model, which eliminates expensive intermediaries, lowers working capital investments and provides real-time market information to management. The direct model also means small overhead costs and allows Dell to undercut rivals without sucrificing features or profitability. The firm has consistently improved margins and increased revenue. At the same time Dell replicated its business model across numerous new markets, most recently by moving into consumer electronics. Meanwhile, Dell's competitive advantage in building computers, servers and notebooks at the lowest possible prices has made life extremely difficult for other manufacturers, such as Gateway GTW and HP Compaq HPQ, Questions 1. What is IKEA's and Dell's core strategy? Which of Porter's generic strategies do the firms follow