Categories: SWOT Analysis

IKEA SWOT Analysis

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">IKEA is one of the most popular and iconic brands in the world&period; From the beginning&comma; IKEA was founded on different principles—namely&comma; frugality and low cost&period; Most furniture companies offer service and advice in settings where salespeople compete for sales commissions&period; However&comma; IKEA founder Ingvar Kamprad recognized that customers were willing to trade off typical amenities to save money&period; Today&comma; the no-frills frugality is the cornerstone of the IKEA caché and the reason for its immense popularity&period; IKEA’s marketing strategy is based on building customer relationships&period; IKEA’s vision and core operating philosophy makes this clear&colon; <&sol;p>&NewLine;<p align&equals;"justify"><strong>The IKEA Concept&colon;<&sol;strong> Provide functional&comma; well-designed furniture at prices so low that as many people as possible will be able to afford them&period; Creating a better everyday life for the many people&period; <&sol;p>&NewLine;<p align&equals;"justify">IKEA’s strategy is based on maintaining a downward pressure on costs and operating expenses&period; Along with the clean&comma; frugal styling that IKEA uses in its product design&comma; the company’s cost control measures are vital to its low retail prices&period; List three examples you find to explain this clean&comma; frugal styling&period; <&sol;p>&NewLine;<blockquote>&NewLine;<p align&equals;"justify"><strong>Modular design&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi; <&sol;strong><&sol;p>&NewLine;<p align&equals;"justify"><strong>Simple design&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi;&nbsp&semi; <&sol;strong><&sol;p>&NewLine;<p align&equals;"justify"><strong>pairing of appropriate material<&sol;strong>&NewLine;<&sol;p>&NewLine;<&sol;blockquote>&NewLine;<p align&equals;"justify">However&comma; IKEA’s frugality will be challenged as it expands its store operations in the United States&period; Let’s explore more details in its expansion strategy&period; <&sol;p>&NewLine;<h3>Internal Strengths<&sol;h3>&NewLine;<&sol;p>&NewLine;<p>• IKEA offer low price furniture to customer as compared to competitors <&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<p>• The company believes in quality products at lower prices&period; <&sol;p>&NewLine;<p>• Strong relations with suppliers <&sol;p>&NewLine;<p>• low operational cost <&sol;p>&NewLine;<p>• Brand reputation is high due to quality products&comma; instant delivery&comma; low cost and non-threating shopping experience&period; <&sol;p>&NewLine;<p>• Serving Worldwide <&sol;p>&NewLine;<p>• Production efficiencies by replication of IKEA proprietary&comma; easy to manufacture product designs&period; <&sol;p>&NewLine;<p>• Strong customer relationship management <&sol;p>&NewLine;<p>• Strong brand image <&sol;p>&NewLine;<h3>Internal Weaknesses<&sol;h3>&NewLine;<p>• Do it yourself approach aren’t suitable for some people as they have put extra efforts in buying&comma; bringing and assembling furniture is a cumbersome job&comma; thus they would prefer to pay more for convenience&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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