{"id":2079,"date":"2019-09-09T09:02:22","date_gmt":"2019-09-09T09:02:22","guid":{"rendered":"https:\/\/assignmenttask.com\/answers\/?p=2079"},"modified":"2020-01-16T20:11:18","modified_gmt":"2020-01-16T20:11:18","slug":"ikea-swot-analysis-case-study-business-strategy-and-structure-marketing-management-assignment-answers","status":"publish","type":"post","link":"https:\/\/assignmenttask.com\/answers\/ikea-swot-analysis-case-study-business-strategy-and-structure-marketing-management-assignment-answers\/","title":{"rendered":"IKEA SWOT Analysis Case Study: Business Strategy And Structure & Marketing Management Assignment Answers"},"content":{"rendered":"

IKEA SWOT Analysis<\/strong><\/h2>\n

Introduction <\/strong><\/h3>\n

IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. Today it is the world’s largest furniture retailer, recognized for its Scandinavian style. The majority of IKEA’s furniture is flat-pack, ready to be assembled by the consumer. This allows a reduction in costs and packaging. IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range is available in all IKEA stores and customers can order much of the range online through IKEA\u2019s website. There are 18 stores in the UK to date, the first of which opened in Warrington in 1987. In July 2009 IKEA opened a store in Dublin too – its first in Ireland.<\/p>\n

\"Order-now\"

IKEA stores include restaurants and caf\u00e9s serving typical Swedish food. They also have small food shops selling Swedish groceries, everything from the famous meatballs to jam. Stores are located worldwide. In August 2008 the IKEA group had 253 stores in 24 countries, with a further 32 stores owned and run by franchisees. It welcomed a total of 565 million visitors to the stores during the year and a further 450 million visits were made to the IKEA website. IKEA sales reached 21.2 billion Euros in 2008 showing an increase of 7%. The biggest sales countries are Germany, USA, France, UK and Sweden. In 2008 IKEA opened 21 new stores in 11 countries and expects to open around 20 more in 2009 as part of its strategy for growth.<\/p>\n

Low prices are one of the cornerstones of the IKEA concept and help to make customers want to buy from IKEA. This low price strategy is coupled with a wide range of well designed, functional products. IKEA\u2019s products cater for every lifestyle and life stage of its customers, who come from all age groups and types of households. This is vital in times when the retail sector is depressed, as it increases IKEA\u2019s potential market.<\/p>\n

Since it was founded IKEA has always had concern for people and the environment. The IKEA vision \u2018to create a better everyday life for the many people\u2019 puts this concern at the heart of the business. IKEA has responded to the public\u2019s rising concern for sustainability in its choice of product range, suppliers, stores and communication. It has also spotted business potential in providing sustainable solutions. IKEA\u2019s concern for people and the environment encourages it to make better use of both raw materials and energy. This keeps costs down and helps the company to reach its green targets and have an overall positive impact on the environment.<\/p>\n

\"Ikea\"

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SWOT analysis <\/strong><\/h2>\n

IKEA’s goals of sustainability and environmental design are central to its business strategy. It has launched a new sustainability plan to take the company through to 2015. This will combine social, environmental and economic issues.<\/p>\n

IKEA uses SWOT analysis to help it reach its objectives. This is a strategic planning tool. It helps the business to focus on key issues. SWOT is the first stage of planning and looks at the Strengths, Weaknesses, Opportunities and Threats involved in a project or business venture.<\/p>\n

Strengths and weaknesses are internal aspects. This means that they are within the control of the business. They may refer to aspects of marketing, finance, manufacturing or organisation. Opportunities and threats are external factors. This means that they are outside the control of the business. These may include the environment, the economic situation, social changes or technological advances, such as the internet.<\/p>\n

\"IKEA

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A business can create opportunities and counter threats by making the most of its strengths and addressing its weaknesses. For example, one of IKEA\u2019s key strengths is its strategic aim to use no more material than necessary in the production of each item. In addition, it develops its product plans to increase its use of waste or recycled materials. \u2022<\/p>\n