Ikea

Topics: Material, Vertical integration, Consultative selling, Human resource management, Raw material, Innovation / Pages: 3 (524 words) / Published: Dec 12th, 2010
STRATEGIC ANALYSIS OF IKEA POLITICAL-Foreign investment restrictions-Companies as charity for tax avoidance-VAT increase to 20%-Globalization has eased import rules.-Government regulation climate change act 2008) | Ref13119 | ECONOMICAL-Economic crisis in North America.-Rising raw material and transport cost in 2009-Low spending power due to recession.-Recession in Russia-High import tax in japan | Ref2,34677 | SOCIAL-Requirements on wood supplier-Brand image-Does not accept child labour-Women empowerment-Forest Law | Ref2699 | TECHNOLOGY-Internet retailing-Established delivery infrastructure-Recreational facilities in stores-Iphone applications-Reusable wood/wood recycling | Ref66824 | ECOLOGICAL-Charging for plastic bags-Recyclable energy-Efficient transport of products and people-Climate projects with-Energy saving sources use | Ref10999 | LEGAL-Foreign investment restrictions -EU legislation on chemicals.-Forest law enforcement-EU directive ban use of methyl bromide | Ref192530 |
Table1: PESTEL ANALYSIS

BUYER POWER(14,38) | THREATS OF NEW ENTRY(14,38) | THREATS OF SUBSTITUTES(14,38) | SUPPLIER POWER(14,38) | COMPETITIVE RIVALRY(14,38) | -Low-High buyer volume-Brand identity-Low threat of forward integration -Low price of product-Low threat of backward integration | -High-Switching cost low-No likelihood of retaliation-Access to distribution channel-Government policy barriers entries | -Low-Customers are loyal to IKEA-Close customer relation-Switching cost low for customer | -Lows-Wide range of supplier-Undifferentiated high valued product-Suppliers grow with IKEA-Low threat of forward integration | -High-Market leader-Low switching cost-High fixed cost-Exit barrier high-Competitive growth strategy |
Table2: PORTER’S FIVE FORCES Table3: ANSOFF’S MATRIX | EXISTING PRODUCTS | NEW PRODUCTS | | EXISTINGMARKETS | MARKET PENETRATION -IKEA loyalty card-IKEA mobile loyalty program-IKEA family program-Modern, innovative

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