Situational Analysis

1169 Words Jul 19th, 2010 5 Pages
Situational Analysis

University of Phoenix

STR/GM581 International Strategic Planning & Implementation
Steven Hall
Situational Analysis IKEA is a global home-furnishing retailer founded in 1943. “In 2008, IKEA had 253 stores in 24 countries plus 32 stores owned by franchisees and 20 stores expecting to open in 2009” (The Times 100, 2009, p. 1). This paper will show the organization’s mission, vision, and values. In addition, this paper will show a consideration of broad environmental forces affecting the firm, and the potential for global expansion. Finally, this paper will show an assessment of industry structure using the Porter Five Forces Model, and a critical assessment of organizational SWOT (Strength, Weaknesses,
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A strong global brand that attracts key consumer groups, which promises the same quality and range worldwide. 2. A strong concept based on offering a wide range of well-designed, functional products at low prices. 3. A democratic design reaching an ideal balance between function, quality, design, and price. IKEA’s cost consciousness means that low prices are taken into account when each product is designed from the outset. 4. Delivering products directly from the supplier to IKEA stores slashes handling costs, reduces road miles, and lowers the carbon footprint. (The Times 100, 2009, p. 3)
IKEA’s weaknesses include: 1. The size and scale of its global business could make it hard to control standards and quality. 2. IKEA also needs to differentiate itself and its products from competitors. 3. IKEA believes there is no compromise between being able to offer good quality products and low prices. 4. IKEA needs to keep good communication with its consumers and other stakeholders about its environmental activities. (The Times 100, 2009, p. 3)
IKEA’s opportunities include: 1. A growing demand for greener products 2. A growing demand for low priced products. 3. Trends in the current financial climate may result in consumers trading down from more expensive stores demand for reduced water usage and lower carbon footprints. (The Times 100, 2009, p. 3)
IKEA’s threats include: 1.

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