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Ikea Research Paper

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IKEA – Research Essay

Introduction
The purpose of this research essay is to update IKEA’s company status for the last six years, i.e. 2003 to 2009/2010. The IKEA vision “to create a better everyday life for the many people” is at the heart of its business, in collaboration with the IKEA business Idea “to offer a wide range of well designed, functional products at low prices.” IKEA, a Swedish home furnishings retailer, is known today as the world’s largest designer and retailer of inexpensive, functional furniture. The company’s core competence involves manufacture and distribution wherein they sell their products, through catalogues and websites in addition to in-store retailing. It is important to note that IKEA ensures the development …show more content…

(Kotler et al, 2006:52) views a SWOT analysis as the overall evaluation of the company’s Strength, Weaknesses, Opportunity and Threats. Today IKEA’s strength is its vision – “to create a better everyday life for many people,” and being a low cost operator, allows the company to not only beat the competition by producing low cost products, but by also edging ahead with operating costs. These strengths contribute to the company being able to retain its customers. To the contrary, once IKEA identifies its weaknesses it can improve and manage by developing new strategies and setting objectives to help ease the severity of its weaknesses on its image, products and growth. The firm’s main weakness is its high dependence on the European market over the American market. IKEA’s lack of American adaptation has prevented them from being as successful as they are in other countries, which has somewhat hindered its growth. IKEA uses its strength to take advantage of opportunities that arise; moving from international to global status through the development of Asia and Europe. The present growth in the market may result in market saturation, through competition. This competition could emerge from a variety of given sources including: established mass-market companies', development of new lines, and vertical integration, so as to be totally in control of supplies and products being sold on the respective markets.

IKEA‘s marketing mix is its

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