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Ikea Swot


Submitted By Lebanon619
Words 282
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• Its brand is associated with well styled, high quality products that are reasonably priced and readily available.

• Standardization of products and operations worldwide minimized costs.

• Has an excellent international procurement. It was successful at identifying worldwide suppliers, and managing quality and prices with suppliers, to keep margins low.

• Has a business model which is unique in its construction and execution with little direct competition on a like for like basis

• Anticipated the needs and wants of customers due to its successful product designs which are modern and of good quality • Although the model promotes low prices it has been identified there is an associated low level of customer service. Customers were able to buy low cost furniture but had to assemble and collect the furniture from stores.

• Standardization of products ignored the different tastes and preferences of the US market and the way they purchased furniture.

• Despite being and international brand, majority of IKEA stores are based in Europe and the balance across North America, Asia and Australia


• Movement from an international to global status through more expansions in North America and Asia and Australia

• Adoption of a polycentric strategy for its products and operations to suit their local markets.

• There is a need to work on customer service to ensure a complete shopping experience and ensure repeat business within the existing customer base.

• Using more aggressive promotional campaigns not just word of mouth will gain more customers and will make the market more knowledgeable of its product offerings. • Within growing competitive retail markets, mainstream retailers might begin to mirror the model of low cost value flat packed furniture which will impact on the buoyancy of

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