Overview of Ikea

In: Business and Management

Submitted By mayank981
Words 268
Pages 2
Overview of IKEA
An overview of IKEA can be seen by analysing the the SWOT.
Strenghts
• Strong brand image
A well established brand combining a distinct style with reputable affordability. Hence, it has a broad and loyal consumer base, helping it survives in tough economic condition.
• Broad geographic reach
IKEA stores are established in many countries, shielding it from local market downturn.
• Adaptability to market and strong global strategy as proven by success in China and Japan.

Weakness

• Too focused on Western Europe
IKEA sales remain significantly focused in Western Europe, a mature market currently affected by considerable economic problems.
• Downside of distinctiveness IKEA’s success in establishing a strong brand image and distinctive offer could reduce its capacity to adapt should consumer trends turn against its unique brand image and design.

Opportunity

* Emerging markets China, India and Indonesia with growing middle class, increasing purchasing power, young median age and growing economy, can support IKEA’s large-scale stores and help balance to spread out global sales. * Internet retailing Strong brand and established delivery infrastructure place it in a strong position to exploit the expansion of internet retailing, driven by increased access to the internet and trends towards convenience in IKEA’s key markets.

Threats
• Difficult economic conditions
Though IKEA is more strongly positioned than its competitors, its business is still being threatened by lower purchasing power and poorly performing housing markets in IKEA’s key markets.
• Increasing competition from supermarkets Retailers in US and European market such as Wal-Mart and Tesco, pose notable threats to IKEA’s low-price positioning. This is further enhanced by the development of internet retailing.…...

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