IKEA Analysis
Edward Kaikumba
BUSN 204:
Case Problems in Business
October 24th, 2014
IKEA Analysis
Introduction At a very young age Ingvar Kamprad showed signs of having an excellent sense of thrift. Even at age five, it is documented that through the resale of matches throughout the city of Stockholm, Ingvar was profitable displaying a knack for appeasing customer needs. Combining the initials of his first name IK and the first letters of the farm and village where he was born (Elmtaryd and Agunnaryd) EA, IKEA was created slowly rising to become the world’s largest seller of retail furniture.
SWOT
Strengths
Weaknesses
Opportunities
Threats
Brand Recognition
The Size and Scale of its Business
Growing Demand for Green Products
Online Retail Giants
Focus on Sustainability & Limiting Waste Production
Market Differentiation
Economic Recession
Economic Trends Reducing Disposable Income
Democratic Design Concept
Online Marketing
SWOT Analysis Looking at such a design forward and industry revolutionary organization such as IKEA, it is hard to find many faults. With all of the inherent strengths that come with their unique design, and brand recognition it is hard to think that a company such as this would ever falter. But further consideration would show that with expansion, grows many concerns. For Example, when first entering the US markets, IKEA had trouble distinguishing its furniture’s value to the US consumers who weren’t used to its different appeal (Jones.) However, utilizing its concept of democratic design, IKEA was able to introduce and highlight products that American consumers would find appealing. This helped to drive and sustain sales, in a marketplace that reaps great rewards to those willing to innovate. This willingness to innovate, which I believe is mostly driven by tenacity for independence highlighted by Ingvar Kamprad, allows the company to orient, adapt, and execute in situations where other companies may regress. The IKEA Idea, as explained by
BUSN 204:
Case Problems in Business
October 24th, 2014
IKEA Analysis
Introduction At a very young age Ingvar Kamprad showed signs of having an excellent sense of thrift. Even at age five, it is documented that through the resale of matches throughout the city of Stockholm, Ingvar was profitable displaying a knack for appeasing customer needs. Combining the initials of his first name IK and the first letters of the farm and village where he was born (Elmtaryd and Agunnaryd) EA, IKEA was created slowly rising to become the world’s largest seller of retail furniture.
SWOT
Strengths
Weaknesses
Opportunities
Threats
Brand Recognition
The Size and Scale of its Business
Growing Demand for Green Products
Online Retail Giants
Focus on Sustainability & Limiting Waste Production
Market Differentiation
Economic Recession
Economic Trends Reducing Disposable Income
Democratic Design Concept
Online Marketing
SWOT Analysis Looking at such a design forward and industry revolutionary organization such as IKEA, it is hard to find many faults. With all of the inherent strengths that come with their unique design, and brand recognition it is hard to think that a company such as this would ever falter. But further consideration would show that with expansion, grows many concerns. For Example, when first entering the US markets, IKEA had trouble distinguishing its furniture’s value to the US consumers who weren’t used to its different appeal (Jones.) However, utilizing its concept of democratic design, IKEA was able to introduce and highlight products that American consumers would find appealing. This helped to drive and sustain sales, in a marketplace that reaps great rewards to those willing to innovate. This willingness to innovate, which I believe is mostly driven by tenacity for independence highlighted by Ingvar Kamprad, allows the company to orient, adapt, and execute in situations where other companies may regress. The IKEA Idea, as explained by
Cited: "SWOT Analysis and Sustainable Business Planning an IKEA Case Study." Introduction. Business Case Studies, n.d. Web. 24 Oct. 2014. Dudovskiy, John. "IKEA Porter 's Five Forces Analysis." Research Methodology. Research Methodology.Net, 8 Mar. 2014. Web. 24 Oct. 2014. "Newsroom." History. IKEA, n.d. Web. 24 Oct. 2014. <http://www.ikea.com/ms/en_AU/about_ikea/the_ikea_way/history/>. "The IKEA Concept - IKEA." IKEA /US/EN. IKEA, n.d. Web. 24 Oct. 2014. <http://www.ikea.com/ms/en_US/this-is-ikea/the-ikea-concept/index.html#idea>.