Introduction This is a SWOT Analysis of IKEA. Crandall, Parnell, and Spillan (2013) states that a SWOT Analysis is “based on a systematic, comprehensive analysis of internal attributes, also referred to as strengths and weaknesses; and of factors external to the organization…” (p. 84). This paper seeks to explore those such attributes. Ikea is an international organization that was organized in Sweden in 1943. Its premise is retail furnishings and has become the world’s premier or leading furniture
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
IKEA SWOT analysis Strengths Weaknesses 1. Customer knowledge 2. Constantly using innovations to drive costs down 3. Supply chain integration 4. Brand reputation and market presence 5. Diversified product portfolio 1. Negative publicity 2. Decreasing quality 3. Standard products Opportunities Threats 1. Further expansion into developing economies 2. Growing online sales 3. Expansion to growing grocery market 1. Intensifying competition 2. Growth of average consumer income 1. Customer knowledge
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
QUESTION 1 Swot analysis is a planned procedure used by an organization in developing strategic plan for goal and mission accomplishment as well as marketing plan. Swot analysis comprises of scrutinizing an organizations strength, weakness, opportunities and treats in its business environments. Swot analysis explores two types of environments. The first is the internal environments and the second is the external environment. The internal environments emphasizes on the strength and weakness of the
SWOT Analysis Strengths Weaknesses Internal Origin - Attractive product design. - Low Price - Well design - Market Leadership - Solid financial position - Focus on product range - Clear Vision - Weak presence in Asian market - Damage reputation due to a series of incidents - The size and scale of its global business. This could make it hard to control standards and quality. - The need for low cost products to be balanced against producing good quality - IKEA needs to
Ahere are certain tools that helps in developing an insight view of the company such as PESTLE/STEP analysis, SWOT, resourced based view and value chain, which helps in giving the information that reveals the current position of the firm in the market. Further, these tools have been used to analyse Goldman Sachs. “A company which is a leading global financial services firm providing investment banking, securities and investment management services to a substantial and diversified client base that
I will be examining Ikea in the Chinese market. First I will carry out an analysis of the company using Porter 5 Forces and SWOT frameworks. After this I will highlight the key issues of IKEA in China, which I will discuss market entry of IKEA in China. Finally, I will discuss my recommendations for IKEA in the Chinese market. Appendix and references therein. Company analysis Porter’s 5 forces (See appendix 1) In terms of bargaining power of suppliers, through this analysis can be set as low due
4 Case study of IKEA ----------------------------------------------------------------------------- 5 - 6 * Introduction of Company SWOT ANALYSIS of IKEA ------------------------------------------------------------------- 7 - 8 EXTERNAL ANALYSIS (GENERAL ENVIRONMENT - PESTEL) ----------------- 9 - 10 * Explanation of General Environment * Political Forces * Economic Conditions * Socio-cultural Conditions * Technological Changes * Environment Factors * Legal Factors EXTERNAL ANALYSIS (COMPETITIVE ENVIRONMENT)
Competitor’s analysis Analyzing current global furniture market, it will be said that the top big global competitors for the company will be IKEA and Ashley furniture companies. SWOT of IKEA furniture Strength • Brand reputation and market presence • Supply chain integration • Customer Knowledge • Constantly using innovations to drive costs down • Diversified product portfolio