SWOT ANALYSIS OF IKEA IKEA is amongst the biggest retailers of furniture in the world. Would you believe that the business sells more than 10,000 furnishing products from well over 300 stores in around 40 countries. The company has in excess of 600 million visitors to its stores, and its very successful website attracts in excess of 600 million visitors every year. IKEA is a Scandinavian company famous for furniture from living rooms to children’s bedrooms. Strengths The company offers unique value proposition to consumers.
*IKEA has maintained long-term partnerships with its suppliers. This ensures that the company has access to high-quality materials at reasonable prices. *a strong global brand which attracts key consumer groups. It promises the same quality and range worldwide * its vision ‘to create a better everyday life for many people’ puts the concern for the environment and people at the heart of the business. a strong concept based on offering a wide range of well designed, functional products at low prices * a democratic design reaching an ideal balance between function, quality, design and price.
IKEA Cost Consciousness means that low prices are taken into account when each product is designed from the outset. * the flat package introduced by IKEA which can be assembled by customers. *A very sustainable firm. Weaknesses *IKEA is a global company, so product standards may be difficult to maintain. IKEA IWAY helps ensure same quality in products, same labour standards etc. The IWAY is IKEAs Code of conduct and it defines what suppliers can expect from IKEA and specifies what IKEA requires from its suppliers *Need for low cost products lead to a possible compromise between quality and price. IKEA itself does not think that they compromise. *A global company need to be more aware of dialogue with stakeholders, because of the fact that they are spread out all across the world. Take a lot of time and effort. – IKEA China does not have its own CSR profile.
Opportunities customers’ desire to have less of an impact on the environment *Denoting the demand for cheaper and greener products IKEA seeks a greater globalisation *Offers tips and ideas online for costumers to create a more sustainable home. * Developing strong social responsibility, by giving to a wide range of different charities. *Reducing carbon footprint by packing in less material. * An open dialogue with the stakeholders creates trust. * Ikea is the most opportunated business as it controls a big monopoly on its market. Threats Competitors – direct (furniture stores) and indirect (Wal-Mart, SEARS). *Aging population on key shopper segments *With growing competitive retail markets mainstream retailers are beginning to mirror the model of low cost value flat packed furniture *With economic recession there are concerns over rising living costs and lower disposable income. *Expention in China market may suffer some set back seems Chinese middle class family prefer more luxury style of furinitures, such as those in the style of Ming Dynasty ones. Yet they are person who is most likely to visit IKEA.
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Swot Analysis of Ikea. (2016, Dec 10). Retrieved from https://graduateway.com/swot-analysis-of-ikea/