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PEST ANALYSIS OF IKEA
Transcript of PEST ANALYSIS OF IKEA
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Some Important Things to Consider
Cost-effective and time-efficient approach.
It can also be collaborated with Porter’s Five Forces, which examines levels of competition.
As well as helping prevent potential disasters, it also highlights possible future opportunities.
A simple definition...
Tool used to scan for potential issues surrounding an organisation
PEST is an acronym for Political, Economic, Social and Technological
Other variations of PEST are PESTLE, STEP, STEEP and STEEPLE
PEST analysis is especially effective when used in conjunction with SWOT
IKEA PEST Analysis
Building and planning regulations when expanding or building new stores
Brexit - IKEA has greater control than most organisations over its suppliers - but future price rises have not been ruled out
Political - Factors include labour law and tax policy
Economic - Relates to factors such as inflation rate and exchange rates.
Social - Population growth rate, cultural factors.
Technological - Rate of change, research and development.
UK inflation levels
UK economic growth following the recession and also post-Brexit,
linked to customer spending power
Strength of the £
Customers spending habits - are customers less likely to allocate a whole day to make a trip to IKEA? For smaller items convenience a factor - easier to visit a high street store
Change in attitudes - preferring to purchase goods online - difficult to get the
same IKEA experience online
Advancements in technology, and the extent to which IKEA can take advantage of these, e.g. 3D printing, virtual reality
Social tech - social media / online presence of IKEA
Greta, Areej, Philippa, James & Kieran