SWOT analysis on IKEA A case study on IKEA SWOT analysis Strength Weakness Opportunity Threat www.ePowerPoint.com

宜家 Background Founded 1943; world's largest furniture retailer; Scandinavian style; flat-pack .. costs and packaging …9,500 products available in all stores and most online. 2008 IKEA 253 stores in 24 countries, + 32 stores franchised. It opened 21 new ones in 11 countries. 18 stores in UK. All have restaurants with Swedish food. 565 million visits to the stores; 450 million to website. Sales €21.2B;  7%. Biggest countries: Germany, USA, France, UK and Sweden. Low price strategy for a wide range of well designed products - every lifestyle and life stage - all age groups and types of households. Concern for people and the environment. The IKEA vision 'to create a better everyday life for many people' puts this concern at the heart of the business. IKEA is concerned with sustainability.                     www.ePowerPoint.com

宜家 Sustainability IKEA’s sustainability plan, to 2015, combines social, environmental and economic issues. A key strength is using no more material than necessary in the production of each item. NORDEN table, uses knotty birch wood. The knots mean it is not used by other producers. IKEA has made the knots a feature. LACK tables use a 'sandwich' of stiff card between wood sheets to reduce the amount of solid wood needed. www.ePowerPoint.com

宜家 Strengths Strong global brand attracts key consumers. Same quality and range worldwide Democratic design – function, quality, design and price. Strong concept – wide range of well designed products + low prices Low operating costs  use of renewable materials – 71% in 2007 … 75% in 2009.  use of recycled or waste products in energy production. Volume commitments – long-term partnerships  prices. security.   Economies of scale. Sourcing materials to reduce transport costs. Deliveries direct to IKEA stores. IKEA measures strengths with Key Performance Indicators (KPI). Example: % suppliers that are currently Iachieving high social and environmental requirements. www.ePowerPoint.com

宜家 Opportunities New markets Unsaturated markets  demand for greener products  demand for low priced products.  water usage and lower carbon footprints. Building trust through good communication www.ePowerPoint.com

宜家 Weaknesses; threats Weaknesses Threats The scale of its global business; hard to control standards, quality, service The need for low cost products, yet offer good quality and differentiation. Communication with its consumers and other stakeholders when scale is large. Threats Social trends – young people buying houses? Competition Economic factors (but IKEA is highly competitive and there are high barriers to entry) www.ePowerPoint.com

宜家 Conclusion IKEA has a strong identity with hundreds of stores across the world. IKEA needs strong growth. IKEA's combines design, low prices, quality and responsibility. IKEA wants to be a leading example of sustainable business. Being responsible is good for business! www.ePowerPoint.com