1. Describe what is a meant by swot analysis?
Identification and evaliation of the strengths and weaknesses inside a firm and the opportunities and threats in its exrenal environment. 3. Analysis ways in which IKEA has managed to minimize threats to its business? IKEA has used various strategies to minimize threats. These go under there different categories. Social trends market forces and economi factors. Social trends:IKEA is building online hepl to guide customers to a more sustainable life. Here it can focus on home improvement in the slowing housing market. It supports customers with tips and ideas on its website to reduce their impact on the environment . This will also save them money. Staff are trained on sustainability , both on what IKEA is doing and how they can take responsibility to became sustainable for themselves. Market forces: IKEA is large enough to enjoy economies of scale. This lower average costs in the long run throught, for example, botter use of techology or employing specialized managers. Economies of scale also give a business a competitive edge if cost savings are them passed on to customers in the form of lower prices. This puts up hight barriers to entry for smaller compamies entering the market. Economic factors: IKEA's low prices create appeal amongst its customers in tought financial times. It is vital to keep prices as low as possible when the refail sector is depressed. IKEA's princing strategy targets corasumers with limited financial resources , its products will also appeal to those With higher budgets throught good quality and design. The company must ensure that it is always recognized as having the lowest prices on the market in the future. IKEA it has created a strong system to interact with customer creating customer satisfaction with an online help guide. Not only is this good interaction and follow up for customers but also it is environmentaly friendly and sustainable. In terms of market forces, IKEA has a large...
Please join StudyMode to read the full document