SWOT Analysis Of Ikea In The Chinese Market

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Introduction

In this report 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 to several factors. China, for many years it has been dubbed the world's factory because of its low production costs and labor. This culture has led to a crowd of several providers available to foreign companies such as IKEA. Because of this IKEA is not limited to a single provider, which may require high quality at a low price, and if it is not accepted by a provider,
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They also have years of international experience and low cost experience the culture. These two combined they offer a strong market knowledge and the necessary skills.

As for weaknesses, IKEA is now facing a difficult relationship with their suppliers, as demand continuously lower prices but still want high quality products. These relationships could cause major problems of managing the supply chain, not only for the Chinese company, but also its other international stores. Another weakness is the European culture. Despite attracting Chinese consumers, it is also difficult for IKEA to bring European and Chinese culture. This is also relevant for DIY IKEA culture. Many Chinese consumers prefer to have furniture assembled by them, and at IKEA had to start offering a delivery service and instillation. Due to the large number who need these services, IKEA was also significantly reduces delivery

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