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title
Making Strategic Trade-offs - Institute For Strategy And Competitiveness - Harvard Business School
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content

 
 
 
 
 
 
 
 
 Robust strategies typically incorporate multiple trade-offs. The very best have trade-offs at almost every step in the value chain. Consider IKEA, the Swedish home furnishings giant. IKEA’s value proposition is to provide good design and function at a low price. Its target customer is what IKEA calls the person “with a thin wallet.” In choosing its particular kind of value and the activities needed to deliver it, IKEA has accepted a set of limits: it does not meet all the needs of all customers. In every major value-adding step in the process of creating and selling home furnishing, IKEA has made different choices from the “traditional” home furnishings retailer. IKEA vs. Traditional Furniture Retailers IKEA, Sweden 
 
 
 Choosing what not to do A strategic position is not sustainable unless there are trade-offs with other positio...
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