Rodriguez Christina WK4 PESTEL

Topics: Economics, Case study, Developed country Pages: 4 (574 words) Published: December 2, 2014
Factor Affecting IKEA
The level of political stability within markets
The level of corporate and consumer taxation
Relevant tariffs and trade restrictions within individual markets International and European trade regulation
Consumer protection legislations
Overall and industry-specific economic growth in markets
Currency exchange rates in local markets
Labor costs in each individual markets
Inflation rate
Market trends
Changes in demographic variables
Lifestyle changes
Fashion trends in local markets
Local cultural factors in markets
Buying patterns of consumers
The emergence of new industry-specific technologies
The level of funding in industry researches
The level of potential for technological innovations
Innovations in information technology to drive down costs
The use of energy and associated costs
Climate changes
Strong Corporate Social Responsibility in IKEA’s culture
Various tax & tariffs
Legal policies and trading regulations (SAFTA, APTA)
Further expansion into developing economies (Brazil, Mexico, Indonesia, Malaysia)

Christina Rodriguez

BUS 411: Strategic Planning

Homework #3


As part of the national or global trends and changes, IKEA is just one example of firms that are successful in both domestic and international business. The Swedish furniture retailer has found the Scandinavian style of furniture that was combined with “do-it-yourself” flat packaging became popular and set a global cult brand (IKEA 2013).

Retail markets grew by at least 5% on average in emerging markets in the last year, opening huge opportunities for IKEA’s revenue growth (IKEA, 2013). The company currently operates in most of the developed economies but hasn’t firmly stepped into developing economies, except China. The Company, due to the economic changes and trends have adopted different kinds of strategies...

Cited: Applegate, E & Johnsen, A, 2007, Cases in Advertising and Marketing Management: Real Situations for Tomorrow’s Managers, Rowman & Littlefield
IKEA (2013). About IKEA. Available at:
The Times 100 (2012). Business Case Studies. Ikea case study. Available at:
Interbrand (2012). Best Global Brands in 2012. Available at:
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Pestel Essay
  • PESTEL Essay
  • Pestel Essay
  • Pestel Essay
  • Pestel Essay
  • Essay on pestel
  • Rodriguez Research Paper
  • Pestel Essay

Become a StudyMode Member

Sign Up - It's Free