Ikea

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Topics: Retailing, IKEA
Ikea Group
SWOT Analysis

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Ikea Group 6878C795-4BCB-4C85-A319-6F33C508FD80 © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

SWOT Analysis

SWOT analysis overview
Ikea is an international home products retailer that sells furniture, accessories, and bathroom and kitchen items. The group's emphasis on providing home furnishing products at low prices has been the main reason for the wide spread customer acceptance of its products. This, in turn, has facilitated Ikea's growth in various geographies. However, barriers to entry in lucrative markets such as India reduce the opportunities for the group to expand its geographic presence and facilitate top line growth. Strengths Weaknesses  Significant market presence Improved range, price, ambience, layout, and facilities at Ikea win customer loyalty Focus on sustainability   Customer perception of Ikea indicates shortcomings in convenience, quality and service Increasing instances of product recalls

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Opportunities

Threats 

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Expansion into the growing Indonesian market Increasing online sales

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Barriers to enter lucrative growth market Unfavorable market trends Anti-dumping duties in the US on furniture made in China Increasing labor costs in Europe

SWOT analysis details
Strengths Significant market presence Ikea is one of the largest furniture retailers in the world. The group sells approximately 9,500 home furnishing products in about 287 stores in 26 countries / territories. Apart from this, Ikea has 29 trading service offices in 25 countries, and 26 distribution centers and 11 customer distribution centers in 16 countries. The group's emphasis on providing home furnishing products at low prices has been the main reason for the wide spread customer acceptance

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