SWOT Analysis Of IKEA

* IKEA’s low cost structure has been the very core of its success. It’s low-cost and high-quality strategy fits with the current state of the economy. Offering convenience factors within IKEA’s stores would fit well with IKEA’s low cost structure. It maintains its low-cost business model by creating a different furniture shopping experience. IKEA supplies customers with all possible materials needed to complete their shopping when they enter the store (that are, measuring

IKEA own 43 IKEA industry production unit in 11 countries. Swedwood factory which is the largest factory located in Southern Poland handles manufacturing and production of all IKEA wood-based products. During manufacturing, IKEA produces pieces of home furniture were designed for the customer to assemble. The pieces are designed to fit into convenient and flat packaging, which benefit both customer and IKEA. As we know IKEA is a huge company that sell over 9,5aa products. So efficient and flat packaging will take up less space in the truck and indirectly increase the number of products that can be

IKEA-products are extremely popular, there are very few people that never heard about the yellow-blue brand. Moreover, it will (even) be hard to find people that have no products from IKEA in their houses. This makes us wonder: “Why is IKEA so successful?” We will analyze IKEA’s marketing department to answer this question. We think IKEA’s marketing strategies are very unique and therefore an important factor causing IKEA’s success. Our main belief was that IKEA is a company with a great proficiency in pricing. However, after some readings about the company we discovered all the 4p’s of the marketing mix are very well developed and still very innovative. IKEA’s marketing strategies are based on its democratic design statement; “Democratic design brings good design to the many

With further global expansion, in order to maintain profitability it was crucial for IKEA to establish the main potential customer group, who would not only appreciate the product concept but will be able to afford it and recognise it as being a "good-value”. The IKEA concept proved to be successful in the developed countries and free trading markets, but the same acceptance can’t be anticipated in the countries with large variations in exchange rates, high inflation and/or high import tax and other restrictions, e.g. bureaucratic obstacles in Russia and China.

IKEA pursues sustainability in a big way which is why competitors could learn from their company. IKEA has a wide variety of products under its label. Today, 71% of all IKEA products are recyclable, made from recycled materials, and or both (A.Jefferies, 2009). In addition to this, Ikea recycles 84% of waste generated in its stores. IKEAs sustainability focuses on four components: products and materials, suppliers, climate change, and community involvement. IKEA bases

One of the many resources available to Home Depot is the use of environmentally friendly supplies. Recently, Home Depot began shifting to greener products and practices, such as no longer using wood from the Amazon forest, and removing harmful chemicals like formaldehyde from their paint products. They have also began to use water recycling pumps for their irrigation centers and are in the process of creating solar powered roofs for their stores which can drastically reduce their carbon footprint. Home Depot is also recycling and reusing as much as they can, from lightbulbs to power tools. The VRINE model below measures the impact of this resource. Although it is valuable and exploitable, it is not rare or non-substitutable. This makes it a valuable resource for the short term but not a sustainable resource for competitive advantage.

Considering the previous mission statement with a unique customer vision IKEA is clearly antagonistic with specific customers’ needs. That lack of adjustment to customer needs is the main reason for not getting the same results in China than in Northern Europe.

The company that I work for tends to scope out available spaces to grow the company. They aren't particularly picky in the choices that they make if they believe that the store will make them money. They want to be able to be diverse in their locations and experience the best of both worlds. We have locations that come in all different shapes and sizes. The most frequent being freestanding sites and also ones that are enclosed in malls. Not alot of places down here have attractions inside of malls and I'm not exactly sure how it looks up north. It's interesting though because the foot traffic that comes along with the stores based in malls is amazing. You can attract customers who weren't even planning to come to the store, but they come in to check it out and end up spending money. In a sense, the customers are planned for but that on top of loyal customers is really great. Our freestanding stores do well on their own too. Only difference is that they depend on their loyal customers. The random foot traffic

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.

To encourage one-time shoppers to return and new customers to visit for the first time.

IKEA is using a different operation strategy from their competitors. The operation of IKEA has to cope with large volume because their products are highly repeatability and specialised. The variety of products the operation needs to create is low to medium as they offer

Products related to home furniture, like complements. Benefit from brand awareness. Bargain power of suppliers is relatively low. Many suppliers in the market. High rivalry to establish

As pointed out in Ikea's mission statement, the company is in business to produce high quality products at a low cost. This would support a

IKEA’s strategy towards its suppliers is that of a low production costs strategy. IKEA wants to sell its products at the lowest possible price therefore their

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.