IKEA is well-known around the world for being that Swedish company offering inexpensive products for … In China, however, it faced peculiar problems. IKEA based its marketing strategy from the production concept. 4. Read out this article, to get an understanding of where Ikea stands. The major challenges which face such companies are learning the market trends and developing goodwill which will make consumers use its products as opposed to competitors' products. 3. Introduction: In this case, I've studied the internationally known home furnishing retailer, which is (IKEA) the largest furniture retailer in the world. IKEA’s Main Sources of Competitive Advantage : Lower Prices: Lower prices are the leading source of competitive advantage for IKEA. Cost-conscious Consumers: Consumers are now becoming very cost conscious. This might help in the growth strategy for Ikea. SWOT analysis is a vital strategic planning tool that can be used by IKEA managers to do a situational analysis of the company . Thus, to pass the benefits to the customer and maintain low cost, IKEA is known to make efficient use … In this way, the company can order large volumes and benefit from lower prices and greater quality while suppliers are assured of guaranteed orders. Although designed before any planning, SWOT analysis can be used to verify that the strategy put in place constitutes a satisfactory response to the situation described by analysis. It aims to help the company generate strategy options and assess future courses of actions. It is extremely important to have a strategy in order to figure out a direction towards which any company is able to focus all its resources efficiently and achieve desired outcomes. Its concept focuses on combining high functionality with quality and design in its products, while keeping prices as low as possible, especially by keeping the assembly of the furniture directly at the customer. This concept holds that customers are attracted to products, which are available and cheap. I would like to use SWOT analysis tool to diagnose the strategy capability of IKEA. IKEA opened its first United States store in 1985 in Philadelphia. Moreover, the report contains analyses of IKEA’s business strategy, leadership and organizational structure and ecosystem. IKEA strategic case study and analysis By: Osama Albarrak osabbr@gmail.com Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. IKEA is an example of an organization that carries the trait of "delighting its customers" in its organizational mission, actions and strategies. Ikea is known for its ready to assemble furniture across the world. Entry strategy analysis The biggest difficulty for IKEA when entering China was the legal systems and trade barriers. It is a useful technique to evalauate the present Strengths (S), Weakness (W), Opportunities (O) & Threats (T) IKEA is facing in its current business environment. Follow ... IKEA Ad Strategy. The company has been able to secure its leadership position through its pricing strategy. IKEA's strategy is to give customers a choice of shopping experiences. The financial resources of IKEA are organised to capture value as identified by the VRIO Analysis of IKEA. IKEA Group Report contains a full version of IKEA SWOT Analysis. Opportunities in the SWOT Analysis of Ikea : Environmental Friendly: There is a certain growing demand for eco-friendly products in the consumers these days. An analysis of the external environment that IKEA is done along with the Identification the core resources and competences of the corporation .The key strategic choices of the organization are discussed in detail. It is a strategy planning tool used to analyse strengths, weaknesses, opportunities and threats of a business. Initially Ikea’s presence in the Chinese market was purely procurement, with most of its purchases of materials from other store deriving from China. Here, we can perform a SWOT analysis on IKEA to know about its strengths, weakness, opportunities and threats for writing IKEA marketing strategy case study. According to Ikea Facts and Figures, They are strengthening their position in the existing markets UK, North America, Middle East and Asia. All of the strengths pointed out in the case are very beneficial however the strongest I feel are the low expense structure, do-it-yourself approach, and the included features. As a result, IKEA keeps innovating to ensure the provision of high-quality products for its customers at economical prices. It is present in almost 50 countries with more than 400 Ikea stories. IKEA’s goals of the business strategy include the combination of economy, society, and an environment. This helps pinpoint the difference across countries that might put IKEA at a relative disadvantage as compared to its local competitors. After getting its start in 1943, Ingvar Kampard was determined to develop and deliver not only quality products to his customers but at low costs. It promises the same quality and range worldwide 2. its vision – ‘to create a better everyday life for many people’ 3. a strong concept – based on offering a wide range of well designed, functiona… Finally recommendations are done which the IKEA can pursue for the next five years and justify your selection (IKEA, 2004). In assessing Ikea, we will examine the brand, its competitors, the brands effectiveness, brand strategy and customer views. Sarkis Ardjian. Ikea is world's leading furniture retailer. IKEA SWOT Analysis IKEA Strengths Below are the Strengths in the SWOT Analysis of IKEA: 1. Ikea’s customer strategy has led to a new and innovative, nested business model for the organisation. IKEA Ad Analysis. IKEA GROUP Report contains the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on IKEA. SWOT Analysis: IKEA’s uses SWOT analysis to reach the objectives or goals of the company, SWOT analysis is their one of the strategic planning tool; the company is focused on improving its strengths, opportunities and trying to overcome its weaknesses and threats. 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