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This is case study of the reputed furniture company IKEA. This report is based on the SWOT and PESTLE analysis of IKEA. The case has the recommendations part as well that is the result of the analysis. The IKEA company is known for their quality products and kitchen appliances. The importance of this study is that this analyses the important internal and external environment of the company. At the same time, the study will be instrumental for the company future strategy setting.
The Ikea is a well -known Swedish company that deals with the ready to assemble furniture, home accessories and kitchen appliances. The company has their branches over 50+ countries and has more than 450 stores. Ikea was founded in the year 1943 by Ingvar Kampard. The journey of the company started as the mail order sales company. The business soon shifted to the furniture business. The quality and the texture of the company products are reputed all over the world. Ikea has global presence in present times. Still now the company is trying to extend their business in the world. The company promotes the DIY culture which increases the sale of their products by making them unique. Else if you are looking for custom writing services, then you should visit Allessaywriter.com.
· The low- cost furniture availability in the brand
· Global recognition for quality and low -cost furniture company
· The network of the company is vast and numerous. This give the brand a good exposure to the world context
· The approach for manufacturing and supply chain is unique and effective for the company performance
· The growth of the company is rapid
· The revenue generation has increased in recent years which is a positive aspect of the company business.
· The stores of the company are located in the remote areas in most of the countries
· The new store plans are to be introduced so that customers are attracted to visit them
· The product portfolio needs to be improved. This portfolio is standard till now all across the globe
· The company has recently faced controversies regarding the durability and security issues. This has affected the reputation of the brand to high extend
· As the company deal with low cost products, there are high possibilities of success in the developing countries
· The raw materials used by the company should be sourced locally for extended profits
· The company has to pick up with the ecommerce chains. All over the world the popularity of e-commerce is increasing. Therefore, the Ikea should also pick up their ecommerce channels in coming years.
· The furniture rental companies are emerging as a competition for the company
· Entry barriers in the industry are low. This is causing new companies to enter the market easily
· The price wars between the competitors are one of the greatest threats in the low cost furniture companies like Ikea.
· The political scenarios of the country affect the business of Ikea
· The political controversies in the countries of Southern Asia is affecting the business sales of the company
· Trade laws are set by the government which plays crucial role in Ikea business outcomes
· The company has huge business in the countries like England and America. The impact of Brexit would affect the business of the company
· The changes in the currency impacts the business of Ikea in different countries
· The customers trends are set according to the economic situation of the country
· The company sources its human resources from local market
· The education and skills of the local people impacts the human resources of the company
· The choices of the furniture changes according to the country cultures and needs of the customers.
· The technology is related to the manufacturing of the profit and maintaining their quality
· The application of AI, automation and IT is crucial in business processing
· The data analytics shapes the customer journey in the industry
· Legal factors are related to the foreign trade laws and the customer protection laws
· The company also has to take care of the labour laws of the country.
· Environmental laws and protection of the environment in the manufacturing process is to be considered.
· The company uses eco-friendly approach in their business operation that helps in CSR point development for Ikea.
· In past years the company has faced critical controversies for unethical business practice which has to be addressed properly in coming operations.
It is clear from the above discussion that the Ikea has the potential to increase their business in the emerging economies. The company needs to focus in the countries that have greater potential for quality low cost furniture. As the company promotes DIY, this should be their USP as it is. The changes needed to be done in the ground level for a greater opportunity. The product portfolio of the company needs to be revised as well. For else academic writing services you can take plagiarism free solutions from us.
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