How does IKEA achieve an intercompany scope of strategic fit?

IKEA achieves an intercompany scope of strategic fit by increasing supply chain surplus. This involves optimizing the entire supply chain network to enhance collaboration and efficiency among all partners. By focusing on creating more value than the total costs involved in the supply chain, IKEA ensures that all participants benefit, which helps to align the interests and capabilities of different companies involved in the supply chain.

Increasing supply chain surplus allows IKEA and its partners to work together effectively towards shared goals, such as reducing costs, improving product availability, and enhancing customer satisfaction. The overall efficiency and performance of the supply chain significantly improve when each entity is focused on maximizing the surplus rather than just individual profit. This collective approach fosters strong partnerships, optimized processes, and innovative solutions that contribute to strategic fit across the entire supply chain.

In contrast, reducing prices for all partners might not lead to increased overall value or surplus, and focusing solely on internal operations limits the effectiveness of collaborations that could enhance the supply chain. Meanwhile, maximizing individual company profits can create silos and potentially undermine the collective efficiency needed for a successful intercompany strategy.