IKEA Case analysis; Hillside & Roberts

 IKEA Circumstance analysis Hillside  Williams Essay




Table of Contents

Professional Summary3


Company Background


External Environment

Distant Environment

Industry Environment

Functioning Environment



Internal Environment

Tangible Assets

Intangible Assets


Core Competencies



SWOT Matrix




Professional Summary

This kind of analysis detailed the history of IKEA Firm since its organization by Ingvar Kamprad in 1943 towards the world wide enlargement and future it encountered in 08. IKEA was striving for long term expansion and growth in sales, but was faced with how to handle it in order to accomplish these. With poor past attempts for global development, lack of analysis into long term countries in which IKEA desired to expand to, and no range on the board of directors; IKEA would have to find a way to achieve business success and accomplish these types of goals. IKEA had a range of threats, possibilities, strengths, and weaknesses to consider. The three threats IKEA faced had been: 1) competition, 2) changing government regulations, and 3) economic and social adjustments. The possibilities for IKEA were: 1) global expansion, 2) item demand, 3) low transitioning costs, 4) market demographics, 5) external relationships, and 6) an effective global business design. The strong points for IKEA were: 1) marketing and logos, 2) freelancing and distributor management, 3) mass modification of products, and 4) r and d. IKEA's weak points were recognized as: 1) business organization and 2) the failure to analyze geographic markets before growth.

Using this SWOT research, we advised that IKEA develop techniques for expanding throughout the world by beginning new stores in Beijing, China; Wuhan, China; New Delhi, India; and Jakarta, Indonesia, and also thoroughly research the geographic markets ahead of this development. They also need to develop a third strategy to sponsor a more diverse board of directors by simply recruiting more independent administrators. These three strategies would aid IKEA in maintaining a competitive advantage in the pieces of furniture industry.


IKEA was one of the world's largest furniture retailers, known for its exceptional Scandinavian design. The majority of IKEA's furniture was flat packs, ready to end up being assembled by consumer. This kind of allowed a reduction in costs and packaging. IKEA carried a wide variety of products, which includes home furniture and accessories.

IKEA's success was based upon its built-in low cost leadership and difference business level strategy: an integrated set of actions designed to develop distinct merchandise (or recognized to be so) at affordable to thin market sections. Low prices were one of the cornerstones of the IKEA concept and helped to create customers want to buy from IKEA. This low selling price strategy was coupled with an array of well designed, functional products. IKEA created products that were basic items intended for young households and newlyweds.

The success of IKEA also depended on their corporate level strategy, transnational/regionocentric. Through this plan, IKEA attemptedto blend its unique item design with the tastes of each target market they sold goods in. Company History

IKEA begun by entrepreneur Ingvar Kamprad in 43. He began selling off pens, purses and watches by heading door to door to his buyers in his country of Sweden. When he began selling his low priced pieces of furniture, his competition did anything to stop him. Local suppliers were prohibited from offering raw material and home furniture to IKEA, and the firm was not permitted to showcase its furniture in industry displays. What would IKEA do? It electricity costs to stay in business. It discovered how to design its own pieces of furniture, bought uncooked material via suppliers in Poland, and created a unique exhibitions. In 1949, IKEA published their...

Bibliography: Mountain, Charles Watts. L., and Gareth Ur. Jones. Strategic: Management A built-in Approach. ninth

ed. Builder, OH, 2010. Print.

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