Sei sulla pagina 1di 4

INTRODUCTION

In this report, the analysis of the present situation of IKEA will be carried out by
using different marketing tools. With this, IKEA will be examined via the use of a
SWOT Analysis. It also aids in spotting present weaknesses and strengths that may
affect the organizations’ capabilities.

ABOUT
IKEA is a genuine story of a person's blessing from heaven. As indicated by
previous Chief Executive Officer (CEO) of the organization, Anders Dahvig, the
organization's target has been to give great plan and quality furniture for those
with constrained monetary needs (Dahlvig, 2013) This, Dahvig further states, has
been accomplished through the organization, trying to diminish costs of their
items and increment deals volumes by keeping up a solid cost control henceforth
conveying the required main concern results (Dahlvig, 2013) as of 2009 the UK
had 18 IKEA stores, beginning with the one opened in 1987 in Warrington. A store
was additionally opened without precedent in Dublin in 2009. (Chopra, 2009).

THE COMPANY
IKEA is the world’s largest home furnishing retailer. It has around 380 stores
worldwide and is driving the furniture market in the developing nations. The
company has an exclusive museum to showcase its creativity in Almhult, Sweden.

IKEA is the provider of affordable, stylish, modern architecture designed furniture,


kitchenware and appliances that are shaping the comfortable lives of people
around the world.

Vision: IKEA vision statement is "To create a better everyday life for the many
people."

Mission: IKEA mission statement is "To offer a wide range of well designed,
functional home furnishing products at prices so low that as many people as
possible will be able to afford them."

Market positioning: IKEA market positioning statement is "Your partner in


better living. We do our part, you do yours.Together we save money."
Analyzing current state
IKEA is certainly one of the top furniture retailers in the world. Its core aspects are
affordable, functionality and quality. Since their commencement, IKEA is
persistently developed as a company throughout the years and are currently seen
as a distinguished successful worldwide business entity in the furniture industry
today. IKEA has certainly met their strategic goals by executing diverse strategic
marketing tools that have made them the success that they are. In 2016, IKEA
opened 12 new stores in 7 countries which presently give them an overall record
of 380 stores in over 38 countries. According to Millward Brown Optimor's
"Brandz Top 100 Most Valuable Global Brands 2016", not only is IKEA the fifth
most valuable retailer in the world, but it is also the most valuable furniture
retailer brand in the world, valued at over 18 billion U.S. dollars. More than 780
million customers visit IKEA stores every year

In 2018, the IKEA retail business generated 38.8 billion Euros in sales. Much of this
comes down to great collaborations with others, who inspired and challenged us
to create an even better product range.

NEW IKEA stores in 2018

422 IKEA stores in more than 50 markets

They had partnered with 1002+ suppliers in 51 countries who help them in
maintaining the quality of home furnishing /Kitchenware & appliances in its 380
stores worldwide.

However, between 2017 and 2018, the world’s largest furniture retailer saw a
nearly 40% drop in profits.

A SWOT analysis
1. Strengths
 Affordability
The inexpensiveness of IKEA products is the true strength of the
brand. Maintaining that same level of cost-effectiveness is what keeps
customers coming back for more.
The company searches for new ways to drive down costs, but without
affecting the appearance of their products those consumers have come
to expect.
 Countless designs
IKEA designers create stylish, newly designed products. But it goes
further than physical decorations. The products are developed for easy
transport and assembly. In the store, you’re able to see the finished,
assembled piece. But when you walk out, you’re given each item in
bits and pieces because it’s easier to put in your car and take home.
 A supplier’s dream
IKEA is able to buy bulk quantities of products because of a long
lasting relationship with their suppliers. For IKEA, buying large
quantities is cheaper than buying a few pieces at a time. It’s also great
for suppliers. The suppliers don’t worry about large quantities of
inventory taking up space in their warehouses. They know IKEA can
take the inventory and sell its hundreds of millions of customers.
2. Weaknesses
 Bad press.
IKEA has had a few run-ins with bad press. Employees have
complained about poor treatment. The brand has faced ridicule for
advertising techniques in non-western countries. And the worst
offense: children being hurt or killed in relation to IKEA furniture.
IKEA has also had to recall dangerous products because they’ve led to
injuries.
Although the saying “any press is good press” may come into the
mind, in IKEA’s case, bad press leads to distrust from their customers.
 Low quality.
IKEA products are known for being lesser quality. This seems to be a
byproduct of offering inexpensive products. How can it be affordable
and high quality? IKEA has yet to find a solution.
In social media, you’ll likely find someone criticizing IKEA’s less
than stellar product quality.
And because they can’t live up to greater quality expectations, other
companies now have the opportunity. Whether these companies can
provide both quality and cost-effective furniture and kitchen
appliances is yet to be determined.
3. Opportunities
 Online shopping.
Additionally, you can purchase IKEA products through their website.
Online shopping is becoming more popular as the years go on.
Especially around holidays like Black Friday, where people want to
avoid long lines for fantastic sales.
IKEA is in a firm spot to accentuate their sales by offering more
products online. Considering the company has more than 800 million
online visitors, it’s definitely a sales channel IKEA should focus more
efforts into.
4. Threats
 Fast competition.
For instance, the competition for furniture products is growing. We’re
seeing global brands like Walmart offering inexpensive home
products. Although their catalogue isn’t as expensive as IKEA’s, that
may only be a matter of time.
 Possible lawsuits.
Then there’s the bad press. Depending on the specifics, IKEA may be
subject to lawsuits from consumers who was injured by IKEA
products. In truth, it doesn’t even require a lawsuit to crush a business.
All it takes is a mob of angry consumers on social media to create
worse buzz, bad reviews, and intense backlash. IKEA needs to be
aware of how they’re viewed online to counteract this perception.
 Increase in cash.
Additionally, growing income can be a problem for the company too.
As consumers have more excess cash, they’re less likely to buy cheap,
low-quality products. Unfortunately, that’s the basis behind the IKEA
brand. And since their quality is on the low-side, consumers will look
for high quality, even if it costs a bit more.

BUSINESS MODEL CANVAS