Essays on IKEA Company - SWOT Analysis and Porters Five Forces Case Study

Download full paperFile format: .doc, available for editing

The paper 'IKEA Company - SWOT Analysis and Porter’ s Five Forces" is a good example of a management case study. IKEA is originally a Swedish company that deals with a vast range of home furniture and furnishing. In recent years the company has expanded to open retail stores all over the world. According to Ivarsson and Alvstam (2010), the company has become the largest retailer of home furniture. The company is owned by the founder’ s family through a Dutch-registered company. By 2009, IKEA operated over 301 stores in North America, Australia, Asia, and Europe. Organizational Tenets IKEA Vision IKEA states its vision as: “ To create a better Everyday life for many people” (Capell, 2005) IKEA Mission IKEA seeks to achieve its organizational vision through its mission statement that states; “ To offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them” (Capell, 2005). Market Positioning: IKEA positions itself as a firm that enables its customer’ s life more comfortable part by playing their part in enabling customers: The objectives of IKEA in business are: To provide the lowest prices for quality furniture in the market to its customers. To better the lives of their customers To provide the widest variety of furniture offering a customer can find in one furniture store. SWOT analysis In the SWOT analysis, there are factors that help the organization and hindrances that the company has.

IKEA Company faces internal strong factors which are its strength and some hindrances such as weaknesses. External factors such as opportunities and threats are of help and hindrances towards the organization. Strength Among the strengths that IKEA has a noteworthy market presence whereby IKEA is known to be the largest retailer of furniture in the world which sells approximately 9500 home furnishing products in the distributed stores in over 26 countries.

To ensure that there is adequate distribution in the furnishings that it offers to both homes and offices; IKEA has set up customer care centers and trading services offices in the 26 countries. The main aim of the company is to provide for home furnishing products with the lowest price possible in all geographical areas and at the same time emphasize quality.

To make this possible, the company has merged with other designs, manufacturers, and transporters and through this, they cut costs that would be incurred if they had middlemen selling or transporting their products. The company ensures that there is efficiency in the manufacturing of their products that way there is the minimization of waste.

References

Capell, K (2005). Ikea: How the Swedish Retailer Became a Global Cult Brand. BusinessWeek, November 14, 2005, 44-54. 21.

IKEA. (2010). Yearly Summary 2010. Retrieved 22/12/2011 from

http://www.ikea.com/ms/nl_BE/pdf/yearly_summary/Welcome_insi

de_2010_update.pdf

Nemati, H.R. & Barko, C.D. (2004). Organisational Data Mining: Leveraging Enterprise Data Resources for Optimal Performance, IGI

Raab, G.(2010) The Psychology of Marketing: Cross-Cultural Perspectives, Gower Publishin

SWOT Analysis. (2010). IKEA Group SWOT Analysis, 1-9

Marketline Advantage (2012). Ikea Group SWOT Analysis. (2012). IKEA Group SWOT Analysis, 1-8

Ivarsson, I., & Alvstam, C. (2010). Supplier upgrading in the Home-furnishing Value Chain: An Empirical Study of IKEA’s sourcing in China and South East Asia. World Development, 38(11), 157

Download full paperFile format: .doc, available for editing
Contact Us