Ikea Swot Analysis

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INTRODUCTION: IKEA was founded in the year 1943 and is known as the world’s largest home furnishing retailer renowned for its Scandinavian style. The first store of IKEA was launched in Warrington in 1987.The main product includes flat-pack ranging from home furniture and accessories with 9500 products. The broad range products are obtainable in all IKEA stores. The stores are located worldwide and they even developed online website. The stores products vary from restaurants, cafes with Swedish food, small food shops of groceries and famous meatball to jam. The biggest sales store are Germany, U.S.A, France, U.K and Sweden among which U.K has reported up to 18 store till date. In 2008 IKEA enlarge its stores…show more content…
The large scale operation of IKEA makes its communication activities with the shareholder and customers difficult. In order to reach its consumers IKEA uses TV, radio and print media as a medium of communication. Due to the large scale global business operations of IKEA , controlling standards and quality becomes a difficult task specially in few countries law doesn’t have any influence over the working conditions, which in turn well to cause a disturbance in the supply chain influencing the view of the customers with respect to the credibility of the product. THREATS Any company should be aware of the threats that will have to face in the forthcoming time. So there are certain precautions that are to be made in prior to the threat being affected. There should be certain strengths that can overcome threats. For IKEA there were 3 factors wherein it helped to face the threat and get cautioned Social factor: Core market segments Market factor: Market competition for the product Economic factor: Disposable income Positive outcome- * online help to guide customers to a more sustainable life. * focus on home improvement in the slowing housing market. * lowers average costs in the long run * cost savings are then passed on to customers in the form of lower prices * puts up high barriers to entry for smaller companies entering the market. * products will also appeal to those

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