Companies like Swedish furniture retailer Ikea can be described as a cost leaders.Ikea established networks of linked mechandising outlets that are interconnected by IT and function as one large company.Which of the following strategies for consolidating a fragmented industry does Ikea pursue?

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Quizplus · Accepted Answer

Chaining refers to the strategy of establishing a network of interlinked outlets that function as a large company. This is exactly what Ikea has done by setting up numerous stores across different geographical locations linked by IT infrastructure. Therefore, Ikea pursues a chaining strategy for consolidating a fragmented industry.

Companies Like Swedish Furniture Retailer Ikea Can Be Described as a Cost