Porter Analysis Ikea
PORTER Analysis
Competitive rivalry:
In United States as in Sweden, we can observe there are some companies operating in the furniture industry and there are many on the market retailers like Home Depot, Wal-Mart, Costco, Euromarket, etc...
The import of products from China for all these companies allows them to sell at low cost.
These elements therefore tell us that the furniture industry is very competitive.
There is an analysis of the rivalry of IKEA in this sector:
IKEA works in a highly competitive industry highlighted by other low priced furniture producers like Galiform (England), Wal-Mart (USA), Euromarket (USA), Argos (England), and others.
«IKEA has wisely attempted to compete by entering the markets that typically pose the largest competition, such as China and Japan» (Caplan, 2006).
IKEA reach a wider market to increase his customers and his market share.
The company is, in the world, the leader in the industry of discounted furniture.
For the customers, IKEA is the most in delivering the complete package, there are equivalent to those of furniture IKEA but value for money, IKEA is leader.
The trust in customers about product quality, the global brand name and the design very popular design has given IKEA a competitive edge.
To conclude, IKEA diversify this products with the food, textile and mobile industry so we can add Sainsbury’s, Tesco, Asda for UK food or Virgin, Vodafone and O2 for mobile to the list of IKEA’s competitors.
Threat of New Entrants:
Capital requirements – The need to invest large financial resources make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. This positively affects IKEA, in a short term because any new entrants will have to invest a large amount of capital in order to compete with them. IKEA has already a vast supply chain and its brand is already unique and known in a large scale and a new entrant in the
Competitive rivalry:
In United States as in Sweden, we can observe there are some companies operating in the furniture industry and there are many on the market retailers like Home Depot, Wal-Mart, Costco, Euromarket, etc...
The import of products from China for all these companies allows them to sell at low cost.
These elements therefore tell us that the furniture industry is very competitive.
There is an analysis of the rivalry of IKEA in this sector:
IKEA works in a highly competitive industry highlighted by other low priced furniture producers like Galiform (England), Wal-Mart (USA), Euromarket (USA), Argos (England), and others.
«IKEA has wisely attempted to compete by entering the markets that typically pose the largest competition, such as China and Japan» (Caplan, 2006).
IKEA reach a wider market to increase his customers and his market share.
The company is, in the world, the leader in the industry of discounted furniture.
For the customers, IKEA is the most in delivering the complete package, there are equivalent to those of furniture IKEA but value for money, IKEA is leader.
The trust in customers about product quality, the global brand name and the design very popular design has given IKEA a competitive edge.
To conclude, IKEA diversify this products with the food, textile and mobile industry so we can add Sainsbury’s, Tesco, Asda for UK food or Virgin, Vodafone and O2 for mobile to the list of IKEA’s competitors.
Threat of New Entrants:
Capital requirements – The need to invest large financial resources make it difficult for a competitor to enter a new market, because they have to commit money up front with no guarantee of returns in the end. This positively affects IKEA, in a short term because any new entrants will have to invest a large amount of capital in order to compete with them. IKEA has already a vast supply chain and its brand is already unique and known in a large scale and a new entrant in the