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Ikea Swot

In: Business and Management

Submitted By moitz
Words 267
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Strengths * IKEA has maintained long-term partnerships with its suppliers. This ensures that the company has access to high-quality materials at reasonable prices. * IKEA has a global reach * IKEA provides designer furniture at lower costs. * IKEA enjoys economies of scale. * Highly focussed on quality. * IKEA’s flat packaging reduces costs and makes it easier for customers to transport * The company culture matches its external image of cost saving. * Strong in-store experience – unique, experiential, “modern theme parks”.
Weakness
* IKEA was trying to sell Scanvadian designs which were initially not accepted in U.S. * Lower level of customer service * Niche market * Too much emphasis on cost-saving. * Product and style selection is limited.
Opportunities
* International expansion: IKEA are moving from International to global status through the development of Asia and Eastern European models. * E-commerce: Will reduce pressure from stores to a certain degree and hence will improve service quality. * Traditional product for IKEA has been within value, low price high volume product however the movement into mid and higher price points with more stylish image opens up a new segment for IKEA. * The budget shopper market is growing, especially among college students and in metropolitan areas
Threats
* Within growing competitive retail markets mainstream retailers are beginning to mirror the model of low cost value flat packed furniture which will impact on the buoyancy of IKEA. * After sub prime crisis in US there is an economic concern which can be a threat to IKEA’s performance. * Plenty of competition. The furniture retail segment is highly fragmented with high end speciality retailers and low end discount

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