Preview

Ikea

Good Essays
Open Document
Open Document
2528 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ikea
Ikea Group
SWOT Analysis

REFERENCE CODE: 6878C795-4BCB-4C85-A319-6F33C508FD80 PUBLICATION DATE: Apr 2012 WWW.MARKETLINEINFO.COM
© MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

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

  

Opportunities

Threats 

 

Expansion into the growing Indonesian market Increasing online sales

   

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
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    A Case Study on Globalization of IKEA
    • 435 Words
    • 13 Pages

    A Case Study on Globalization of IKEA

    IKEA which may be the world’s most successful global retail has grown into a global cult brand with 230 stores in 33 countries that host 410 million shoppers. To achieve global success, IKEA took some actions, for example, in order to avoid the costs associated with shipping the product all over the world. IKEA works with suppliers in each of the company’s big market and IKEA had to adapt it offerings to the tastes and preference of consumers in different countries. Besides, globalization of market and production are also an important factors of IKEA’s achievement.…

    • 435 Words
    • 13 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    IKEA case study
    • 440 Words
    • 2 Pages

    IKEA case study

    IKEA’s view of value creation and delivery assists customer loyalty by creating a strong brand culture. Nowadays, people are becoming brand conscious thus helps IKEA in retaining more customers. The company is customer oriented which make its products based on consumer needs. IKEA sells stylish furniture at such a low price that is really affordable and more people buys it, which in turn increases sales and customer loyalty. Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring you even more customers. IKEA started as a pure Scandinavian furniture seller with a standard product but latter on get mixed with local culture of country and life style as in case of China. In addition, convenience of going to IKEA stores is another contributing factor to customer loyalty. The stores are near to public transport places and shoppers view furniture on the main floor in scores of realistic settings arranged throughout the cavernous showrooms (Wild et. al., 2007). IKEA has started a home delivery service and assembly service to make it more convenient for the customers. Not only this people who are very busy in life and cannot go to the brick store, they can also order through World Wide Web for the furniture and IKEA will deliver it to their doorstep (IKEA, 2012). Also, the company started additional services such as food outlets, food market and Kid’s corner to entertain its customers who comes for shopping.…

    • 440 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    Ikea Global Sourcing Challenge
    • 2551 Words
    • 11 Pages

    Ikea Global Sourcing Challenge

    The IKEA Group, one of the world’s top furniture retailers, has emerged as the fastest-growing furniture retailer in the US. Its unique business strategy has given it its strengths for its success today. However, like all strategies, IKEA’s strategy has its own flaws that can pose as weaknesses. IKEA also has a lot of opportunities in the marketplace such as expansions of their company and threats such as competitors in the same industry.…

    • 2551 Words
    • 11 Pages
    Best Essays
    Read More
  • Good Essays

    Ikea Case Study
    • 963 Words
    • 4 Pages

    Ikea Case Study

    1)Given the SWOT analysis presented in the case, what are IKEA’s key competitive advantages? What strategic focus should the company take as it looks to further expand into the U.S. market?…

    • 963 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Marketing in the Operational Context: the Case of Ikea
    • 1255 Words
    • 6 Pages

    Marketing in the Operational Context: the Case of Ikea

    The purpose of this paper is to look into the marketing aspect of IKEA and the overall furniture or home furnishing retail industry. This is in the light of its operational context. More specifically, this paper will conduct a macro-environmental analysis so as to highlight the changes that are occurring. The market for the furniture and home furnishing retail industry will also be described in this paper. Moreover, the customers for IKEA will be analyzed. Based on the different forms of analyses which will be conducted, the researcher will be able to examine the company of IKEA more deeply. Hence, a SWOT analysis will be conducted so as to highlight the key issues and opportunities for change. It will then examine how these changes will affect the marketing and operations strategy of IKEA. And based on the analyses, this paper will make recommendations as to how to approach the marketing strategy of IKEA.…

    • 1255 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    How Has the Globalization of Markets and Production Benefitted Ikea?
    • 432 Words
    • 2 Pages

    How Has the Globalization of Markets and Production Benefitted Ikea?

    The globalization of market refers to the merging of taste and preferences of consumers from all around the world resulting in an emergence of a single global marketplace. IKEA has thus used this occurrence to their advantage by shaping their business model to emphasize on standardization, customization and functionality. IKEA’s motto “ One design suits all” is a simple yet effective business model that has helped them cater to all the diverse markets around the world today. In general IKEA products are standardized across markets and have high functionality that cater to the needs of people in every country. IKEA also functions on the principle of offering furniture at low and affordable prices. Despite its low costs, products are still of high quality due to the ability to mass produce their products. Similar to Macdonaldization, IKEA has been able to answer to the uniform taste of consumers in todays society and at the same time spread its own culture identity internationally. IKEA only uses different marketing and advertising strategies for their various markets to better cater to the local consumers.…

    • 432 Words
    • 2 Pages
    Good Essays
    Read More
  • Better Essays

    Ikea Case Study
    • 1037 Words
    • 5 Pages

    Ikea Case Study

    The expansion of Ikea in the U.S. market had been moving at a very slow pace. Referring to the case study given, Ikea had only managed to open up three stores in U.S during the year 2009 to 2012 and the company has no plans to open up anymore new stores due to the slow expansion. The two main issues that Ikea are facing in the U.S. market is that the consumers in U.S do not appreciate the values that had been given by Ikea which are low cost and self-assemble approach as they perceive it as low quality products. However, the results from Ikea in the U.S. appeared to be favourable in 2013 due to the strong sales in the U.S. market and the store sales had grew by 6.7% (Ikea, 2014). According to Ikea (2015), the expansion of Ikea in the U.S had…

    • 1037 Words
    • 5 Pages
    Better Essays
    Read More
  • Best Essays

    IKEA
    • 3644 Words
    • 15 Pages

    IKEA

    Lewis, E. (2005). Great IKEA! A brand for all the people. London: Cyan Communication Limited.…

    • 3644 Words
    • 15 Pages
    Best Essays
    Read More
  • Good Essays

    Ikea Case
    • 1173 Words
    • 5 Pages

    Ikea Case

    a. IKEA’s simple, yet unique designs are undoubtedly a critical factor in its success as a furniture retailing company. In its early years, IKEA’s cost-focused strategy led to its manufacturing of “low-priced furniture [that] was functional at best, ugly at worst” (4). However, over the last decade, the company has deliberately focused on creating products with a more distinct design aesthetic. Today, consumers appreciate IKEA furniture for its both its functionality and appeal, rather than solely for its functionality. Ingvar Kamprad, the company’s founder, first introduced furniture into the IKEA product range in 1947. He solicited local Scandinavian manufacturers in the forests close to his home to design and build the furniture. The history of Scandinavian influence on IKEA’s products and its company culture was a major factor in its success.…

    • 1173 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    IkEa
    • 4890 Words
    • 17 Pages

    IkEa

    The selected company for discussion is IKEA group where company is renowned for their D.I.Y concept which makes them the sovereign furniture retailer in the industry. In this report, the first scope of the discussion will be accentuating on the segmentations and target market segments on how IKEA is based according to their company standards with different approaches and ways of adopting the concepts.…

    • 4890 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Better Essays

    Marketing and Ikea
    • 10688 Words
    • 43 Pages

    Marketing and Ikea

    IKEA is a well-known global brand that provides high-quality furniture at a low cost. Currently there are outlets in 37 countries all over the world and IKEA is continuing to expand. As the company expands they must adapt to culture-specific needs while at the same time continuing to be loyal to their original concept. IKEA has strong relationship with suppliers which help them to be cost leader in the furniture industry as well as a strong social and environmental policy. Their image of quality and affordability is an asset and their unique decision to go to flat packs provided portability and greater storage capacity. IKEA has weaknesses greatest of which is a resistance to change. They also lack transparency between divisions, have high staff turnover, and have difficulty forecasting demand. They have opportunities in the trends toward streamlined customs, increases in e-commerce, popularity of franchising and the current popularity of minimalist styles. The threats come from strong competition from superstores, government regulations and, because of their snail like pace of change, advances in technology and dramatic style changes pose large threats.…

    • 10688 Words
    • 43 Pages
    Better Essays
    Read More
  • Powerful Essays

    Globalisation Ikea
    • 1813 Words
    • 8 Pages

    Globalisation Ikea

    The report will first give a brief summary of the IKEA case study, followed by the strategies used in targeting the global customer segment, followed by the importance of their brand image along with the marketing implications with it, followed by the advantages and disadvantages of adopting a standardized versus an adapted strategy in IKEA’s global strategy, followed by the effectiveness of communications and the similarity of the cultures of the world today. Lastly, a conclusion I will summarize the report.…

    • 1813 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    IKEA
    • 6890 Words
    • 28 Pages

    IKEA

    IKEA, the world’s largest home furnishings retailer, has a vision of providing “well designed, functional home furnishings [at] prices so low that as many people as possible will be able to afford them.” But the company also differentiates itself as a retailer. It offers distinctive product designs, and while its stores have a typical warehouse format on the bottom level, the second level provides a comfortable environment where customers can browse home furnishing concepts. From an assortment perspective, IKEA is distinctive by committing to a catalog of products that will be stocked for a year at a guaranteed price.…

    • 6890 Words
    • 28 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Ikea Case
    • 7437 Words
    • 30 Pages

    Ikea Case

    In 1989, furniture retailing worldwide was a fragmented industry in which small manufacturers and distributors catered to the demands of their local markets. Consumer preferences varied by region, and there were few retailers whose operations extended beyond a single country. IKEA, however, had repeatedly bucked market trends and industry norms. Over three and a half decades, it had built a highly profitable worldwide network of furniture stores (see Exhibit 1).…

    • 7437 Words
    • 30 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    IKEA Case Study
    • 409 Words
    • 2 Pages

    IKEA Case Study

    IKEA was established in 1943 by Ingvar Kamprad at the age of 17. His entrepreneurial nous has led to an integrated design, production and distribution network spanning 53 countries. Kamprad created a lifestyle model that mould consumer habits and attitudes. The purpose of the company was to provide fine-looking, quality furniture to the masses which Kamprad went about via the internal culture of the company. IKEA’s attention to detail can be described as a variety of strategies that link management and co-workers at all levels to their customers.…

    • 409 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics