Ikea Swot Analysis
KStrengths
1. Supply chain strategies.
1.1. Packaging concept. The flat packaging is known of its IKEA which is very effective for transporting products because more products can be shipped at the same time. Consequently, transportation cost will be cheaper. Furthermore, the flat packaging reduces some materials usage. However, it has some weak areas to work on such as protection and unitization.
1.2. New unit load carrier. IKEA has created new carrier which is called “Loading ledge”, is a flexible unit load carrier. It can save money as a part of total logistic solution and also make the transport be more volume. The loading ledge has been used for two years within IKEA’s supply chain and the result has satisfied for IKEA because it can reduce damages in good processes.
1.3. Direct delivery. IKEA’s products are delivered directly from supplier to different stores because this is the cheapest way for distribution. Furthermore, it can decrease the transportation distance and lower carbon release. In term of process, the goods do not transport to distribution center because it can be directly to stores. This process is very efficiency and special one. So, they can save the cost of one time transport.
Figure 1 Direct delivery distribution.
1.4 Sustainable relationships.
IKEA focuses on long-term supplier relationship. IKEA usually buy a large volume for a plenty of years. As a result, they can negotiate at low price. Moreover, the suppliers also gain advantages because their products are guaranteed ordering.
2. IKEA’s culture and concept.
2.1. Powerful worldwide company.
IKEA has strong global brand and concept which is guaranteed good quality at lower price.
2.2. IKEA’s vision
IKEA notes their goal that “to create a better everyday life for many people”.
3. Environmental perspectives.
3.1. Green process.
IKEA uses materials that are environmentally friendly. For example, renewable materials, recycling waste products, etc.
3.2. New
1. Supply chain strategies.
1.1. Packaging concept. The flat packaging is known of its IKEA which is very effective for transporting products because more products can be shipped at the same time. Consequently, transportation cost will be cheaper. Furthermore, the flat packaging reduces some materials usage. However, it has some weak areas to work on such as protection and unitization.
1.2. New unit load carrier. IKEA has created new carrier which is called “Loading ledge”, is a flexible unit load carrier. It can save money as a part of total logistic solution and also make the transport be more volume. The loading ledge has been used for two years within IKEA’s supply chain and the result has satisfied for IKEA because it can reduce damages in good processes.
1.3. Direct delivery. IKEA’s products are delivered directly from supplier to different stores because this is the cheapest way for distribution. Furthermore, it can decrease the transportation distance and lower carbon release. In term of process, the goods do not transport to distribution center because it can be directly to stores. This process is very efficiency and special one. So, they can save the cost of one time transport.
Figure 1 Direct delivery distribution.
1.4 Sustainable relationships.
IKEA focuses on long-term supplier relationship. IKEA usually buy a large volume for a plenty of years. As a result, they can negotiate at low price. Moreover, the suppliers also gain advantages because their products are guaranteed ordering.
2. IKEA’s culture and concept.
2.1. Powerful worldwide company.
IKEA has strong global brand and concept which is guaranteed good quality at lower price.
2.2. IKEA’s vision
IKEA notes their goal that “to create a better everyday life for many people”.
3. Environmental perspectives.
3.1. Green process.
IKEA uses materials that are environmentally friendly. For example, renewable materials, recycling waste products, etc.
3.2. New