Scribd Logo
Upload

Welcome to Scribd!

  • 3K views

    IKEA Porter's Five Forces Analysis

    Uploaded by

    Minion
    IKEA's Porter's Five Forces analysis is discussed. The threat of new entrants into the furniture and home appliances industry is significant due to low barriers, though pursuing a low-cost strategy presents challenges due to economies of scale. Buyer bargaining power is high due to price sensitivity and competition. Supplier bargaining power is low as IKEA has many global suppliers and can impose sustainability programs. The document provides an overview of IKEA's industry analysis using Porter's Five Forces model and other frameworks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    IKEA Porter's Five Forces Analysis

    Uploaded by

    Minion
    3K views2 pages
    IKEA's Porter's Five Forces analysis is discussed. The threat of new entrants into the furniture and home appliances industry is significant due to low barriers, though pursuing a low-cost strategy presents challenges due to economies of scale. Buyer bargaining power is high due to price sensitivity and competition. Supplier bargaining power is low as IKEA has many global suppliers and can impose sustainability programs. The document provides an overview of IKEA's industry analysis using Porter's Five Forces model and other frameworks.

    Original Description:

    IKEA Porter’s Five Forces Analysis

    Original Title

    IKEA Porter’s Five Forces Analysis

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    IKEA's Porter's Five Forces analysis is discussed. The threat of new entrants into the furniture and home appliances industry is significant due to low barriers, though pursuing a low-cost strategy presents challenges due to economies of scale. Buyer bargaining power is high due to price sensitivity and competition. Supplier bargaining power is low as IKEA has many global suppliers and can impose sustainability programs. The document provides an overview of IKEA's industry analysis using Porter's Five Forces model and other frameworks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    3K views2 pages

    IKEA Porter's Five Forces Analysis

    Uploaded by

    Minion
    IKEA's Porter's Five Forces analysis is discussed. The threat of new entrants into the furniture and home appliances industry is significant due to low barriers, though pursuing a low-cost strategy presents challenges due to economies of scale. Buyer bargaining power is high due to price sensitivity and competition. Supplier bargaining power is low as IKEA has many global suppliers and can impose sustainability programs. The document provides an overview of IKEA's industry analysis using Porter's Five Forces model and other frameworks.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    3/17/2016

    IKEAPortersFiveForcesAnalysisResearchMethodology

    LearnthePowerof
    ERP

    AccountingInformation
    SystemsHaveEvolved.See
    How.FreeWhitePaper
    swktech.com

    IKEAPortersFiveForcesAnalysis
    PostedonOctober13,2015byJohnDudovskiy
    PortersFiveForcesmodelisagenericframeworkthatdeconstructsindustrystructureintofiveunderlyingcompetitive
    forcesorvariables[1].Theseforcesarerepresentedinfigurebelow:

    PortersFiveForces
    Threatofnewentrantstofurnitureandhomeappliancesmanufacturingindustryissignificant.Therearenoor
    minimumlegalorregulatorybarrierstoentertheindustryandknowledgebarriersarenotsubstantialaswell.However,the
    newmarketentrantswouldnotbeabletobenefitfromtheeconomiesofscaletothesameextentasIKEAatleastduringthe
    initialstagesofoperations.Theaccesstodistributionchannelsrepresentanoteworthybarrierfornewmarketentrantsas
    well.Itcanbeargued,thatalthoughthethreatofnewentrantsintothefurnitureandhomeappliancesindustryingeneral
    issignificant,thethreatofnewentrantstopursuecostleadershipstrategyisinsubstantialduetoimmenseroleofthe
    economiesofscale.

    Bargainingpowerofbuyersishuge.IKEAcustomersaregenerallypricesensitiveandthissituationincreasestheir
    bargainingpower.Thecompetitionisintenseandassuch,thereisalonglistoffurnitureretailerspeoplecanbuyfrom.
    Moreover,theabsenceofswitchingcostsforbuyersfuelstheirbargainingpowertoasignificantextent.

    Bargainingpowerofsuppliersisinsubstantial.IKEAhas1002suppliersin51countries[2]andthelackof
    differentiationbetweenproductsdeliveredbysuppliersincreasesIKEAsbargainingpower.Alongwithpurchasing
    productsandsuppliesforlowprices,IKEAexercisesitsgreatbargainingpowertoimposeitsCSRprogramsonits
    suppliers.Forexample,thankstothepushbyIKEA,itssuppliersimprovedtheirenergyefficiencyby19%inFY2014
    comparedtoFY2010.[3]
    IKEAGroupReportcontainsmoredetaileddiscussionofIKEAPortersFiveForces.Moreover,thereportillustratesan
    applicationofSWOT,PESTELandValueChainanalyticalframeworksanddiscussesIKEAsmarketingstrategyand
    companysapproachtowardsCorporateSocialResponsibility(CSR).

    http://researchmethodology.net/ikeaportersfiveforcesanalysis/

    1/2

    3/17/2016

    IKEAPortersFiveForcesAnalysisResearchMethodology

    [1]Nemati,H.R.&Barko,C.D.(2004)OrganisationalDataMining:LeveragingEnterpriseDataResourcesforOptimal
    Performance,IGI,p.29
    [2]YearlySummary2014,IKEAGroup
    [3]IKEAGroupSustainabilityReport(2014)
    R EL A T ED A R T ICL ES :

    StarbucksPortersFive
    ForcesAnalysis

    SharpPortersFive
    ForcesAnalysis

    GuestTekPortersFive
    ForcesAnalysis

    DellPorter'sFive
    ForcesAnalysis

    PortersFiveForces
    Analysis

    WarnerBros.Porters
    FiveForcesAnalysis

    ApplePorter'sFive
    ForcesAnalysis

    MicrosoftPortersFive
    ForcesAnalysis

    GooglePortersFive
    ForcesAnalysis

    CocaColaPortersFive
    ForcesAnalysis

    SamsungPorter'sFive
    ForcesAnalysis

    AmazonPorter'sFive
    ForcesAnalysis

    ThisentrywaspostedinPortersFiveForces.Bookmarkthepermalink[http://researchmethodology.net/ikea
    portersfiveforcesanalysis/].

    http://researchmethodology.net/ikeaportersfiveforcesanalysis/

    2/2

    You might also like