Ikea Swot Analysis

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KStrengths 1. Supply chain strategies. 1.1. Packaging concept. The flat packaging is known of its IKEA which is very effective for transporting products because more products can be shipped at the same time. Consequently, transportation cost will be cheaper. Furthermore, the flat packaging reduces some materials usage. However, it has some weak areas to work on such as protection and unitization. 1.2. New unit load carrier. IKEA has created new carrier which is called “Loading ledge”, is a flexible unit load carrier. It can save money as a part of total logistic solution and also make the transport be more volume. The loading ledge has been used for two years within IKEA’s supply chain and the result has satisfied for IKEA because…show more content…
1.1 Offering services. A better services offering from competitors. For instance, they offer home delivery, free installation, etc. 1.2 More products. The larger suppliers such as Tesco and Walmart, they do not sell only home furniture, also offer electronics, groceries, etc. 2. Economic situation. The target group of IKEA is consumers with limited financial income. Therefore, this economic situation will impact and influence IKEA’s business due to a slow down consumer spending and income reduces. IKEA’s SWOT analysis | Strengths | Weaknesses | 1. Supply chain strategies.2. IKEA’s culture and concept.3. Environmental perspectives. | 1. IKEA size.2. Inconvenience located.3. Diverse market. | Opportunities | Threats | 1. Environmentally business.2. Low price products.3. Working on sustainability. | 1. Competitors.2. Economic situation. | Gap analysis Next 0-3 years Present Issue | Aspect | ● A weak online support.- IKEA lack of online purchasing options. It forces customers to go to stores. This probably causes losing some profits due to inconvenience located of some stores.● Do It Yourself - The target group of IKEA may require convenience installation. IKEA does not provide this point. Sometimes IKEA has overlooked their customers.● Using the new unit load carrier takes longer time than traditional one.● Due to increasing material flows, DC needs the effective solutions to handle it.● The distribution will

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