Company Capabilities and Value Chain of IKEA Case Study

Company Capabilities and Value Chain of IKEA - Case Study Example A USP is defined as a cutting edge or a differentiation that separates one product or service from its competition. This, however, does not imply that the other products do not sell in the market. In a market, there are several products, each with a differentiation, each with a cutting edge – each having a separate USP associated, and the admirers of the particular benefit are retained by that product/service or brand. For example, in many regions, COKE is stronger in taste compared to PEPSI, and therefore, individuals having taste for stronger beverages prefer COKE, while others go for PEPSI. The critical point in this discussion is that both products sell, and sell well. This way, the capability of a firm to develop a USP has turned on its sale volumes. Subsequently, moving backward in the value chain, when a supplier sees the manufacturer doing well, the supply chain strengthens itself in terms of its operations and processes. Other than the operations in the value chain, t he operations within the manufacturing unit have also illustrated a positive impact. Some authors associate this feel like a current flowing in a wire; it becomes similar to the capabilities flowing back to where it is supplied. The ideas, values are engraved in the roots of the organization and from there, it circulates to all parts of an organization and the business itself indulges in boosting its unique edge for its customer values. Following is the discussion of the IKEA case that depicts a classic example of the same. Fundamentally, IKEA is all about the furniture of various sorts and types and kinds.