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The Ikea Swot Analysis

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Elodie Charoux

on 16 September 2010

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Transcript of The Ikea Swot Analysis

Ikea SWOT Analysis Weaknesses Strenghts Opportunities Threats •IKEA have a strong internationally known
brand attracting key demographic customer

•The IKEA business model is unique in its
construction and execution with little direct
competition on a like for like basis.

•Despite the large shed operations IKEA operate
there is a degree of specialist knowledge within
key product areas where purchases are more
considered and require assistance such as
kitchen installations •Although the model promotes low prices it has been
identified there is an associated low level of customer
service which couples this suggesting there is a need to
work on service to ensure a complete shopping experience
and ensure repeat business within the existing customer base.

•As a reaction to marketplace movement the development
of Ecommerce has been necessary to compete in a modern
technological world however there is also a consideration
this movement into multi channel retailing moves away from
the fundamental vision of the customer being able to see and
touch the product •Traditional product for IKEA has been within value,
low price high volume product however the movement
into mid and higher price points will see an opportunity
to move the demographic base and increase the average
basket value with less reliance on a limited demographic

•Although there are negative associations within the
development of the IKEA Ecommerce site there is an
associated opportunity to achieve growth and increase
levels of customer service as the additional transactional
capability will reduce pressure from stores to a certain degree •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

•With economic concerns over rising living costs and depleting
disposable income there is an overall threat to the performance
of the business in UK and American markets specifically.
Full transcript