It is present in almost 50 countries with more than 400 Ikea stories. Although designed before any planning, SWOT analysis can be used to verify that the strategy put in place constitutes a satisfactory response to the situation described by analysis. SWOT Analysis: IKEA’s uses SWOT analysis to reach the objectives or goals of the company, SWOT analysis is their one of the strategic planning tool; the company is focused on improving its strengths, opportunities and trying to overcome its weaknesses and threats. Finally recommendations are done which the IKEA can pursue for the next five years and justify your selection (IKEA, 2004). After getting its start in 1943, Ingvar Kampard was determined to develop and deliver not only quality products to his customers but at low costs. Thus, to pass the benefits to the customer and maintain low cost, IKEA is known to make efficient use … Initially Ikea’s presence in the Chinese market was purely procurement, with most of its purchases of materials from other store deriving from China. This PESTLE analysis of IKEA uncovers recent controversies, growth, and challenges. According to Ikea Facts and Figures, They are strengthening their position in the existing markets UK, North America, Middle East and Asia. IKEA is well-known around the world for being that Swedish company offering inexpensive products for … IKEA's strategy is to give customers a choice of shopping experiences. The report illustrates the application of the major analytical strategic frameworks in business studies such as PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on IKEA. Analysis of IKEA's Internationalization Strategy IKEA is one of the most recognizable home furniture brands worldwide. IKEA’s goals of the business strategy include the combination of economy, society, and an environment. Reasons for failure of IKEA in US market. Cost Consciousness: In relation to the implementation of daily core values at IKEA, cost consciousness is indeed a central value and a significant component of IKEA’s business strategy. Here, we can perform a SWOT analysis on IKEA to know about its strengths, weakness, opportunities and threats for writing IKEA marketing strategy case study. The document describes the strategic environment of IKEA. IKEA’s strengths include: 1. a strong global brand which attracts key consumer groups. In assessing Ikea, we will examine the brand, its competitors, the brands effectiveness, brand strategy and customer views. The SWOT analysis of Ikea differentiates all the main strengths, weaknesses, opportunities, and threats of the company for them to achieve more. I would like to use SWOT analysis tool to diagnose the strategy capability of IKEA. Ikea has approximately 200000 employees across the world. Political factors: Branching into Asian markets Since IKEA stores are open in more than 41 countries, the company must abide by the regulations of each. IKEA is making plans to enter and expand larger markets like India, China and South America with its cost leadership strategy and has high hopes to yield benefits for the company. It is extremely important to have a strategy in order to figure out a direction towards which any company is able to focus all its resources efficiently and achieve desired outcomes. If you continue browsing the site, you agree to the use of cookies on this website. So while the company expands e-commerce, it also plans to continue to … IKEA strategic case study and analysis By: Osama Albarrak osabbr@gmail.com Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. 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