Use value innovation to create competitive advantages in Blue Ocean : A case study of IKEA in Nanjing

Abstract: This present thesis aims to contribute to a better understand about how to use value innovation to get competitive advantages and get leading position in the market.   This theoretical approach is supported by an empirical case study about IKEA in Nanjing, China. This case is based on a qualitative research method of in-depth interviews with the local customers, co-workers and managers. The outcome is IKEA uses a unique strategy execution in Nanjing, and it fits Nanjing’s market very well.   The competitive strategy of IKEA is based on its vision of “create better everyday life for many people”, combined with the value-based service culture, and use value innovation to create more value for both customers and company. This present thesis will show its unique strategy operation way together with value creation, which leads IKEA successful apply its Blue Ocean strategy in a foreign country and gets leading position in the market.   So far we have the opinion that IKEA has been successful in Nanjing by implementing a Blue Ocean strategy, which is crucially supported by good value innovation for both customers and company. It is quite a good example of successful Blue Ocean strategy operator in globally.