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    IKEA Assessment

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    Sohan Uprety
    IKEA faces several external challenges including opening new stores to drive growth, finding new suppliers, consumer concerns about deforestation, and increasing competition from other low-price retailers. Internally, IKEA may struggle with leadership changes as its founder Ingvar Kamprad steps down and the privately held company structure limits access to capital for expansion. Finding new suppliers that meet IKEA's efficient operations standards also poses a challenge. Overall, securing suppliers to support new store openings presents the greatest threat to IKEA's future growth.

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    IKEA Assessment

    Uploaded by

    Sohan Uprety
    176 views2 pages
    IKEA faces several external challenges including opening new stores to drive growth, finding new suppliers, consumer concerns about deforestation, and increasing competition from other low-price retailers. Internally, IKEA may struggle with leadership changes as its founder Ingvar Kamprad steps down and the privately held company structure limits access to capital for expansion. Finding new suppliers that meet IKEA's efficient operations standards also poses a challenge. Overall, securing suppliers to support new store openings presents the greatest threat to IKEA's future growth.

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    IKEA faces several external challenges including opening new stores to drive growth, finding new suppliers, consumer concerns about deforestation, and increasing competition from other low-price retailers. Internally, IKEA may struggle with leadership changes as its founder Ingvar Kamprad steps down and the privately held company structure limits access to capital for expansion. Finding new suppliers that meet IKEA's efficient operations standards also poses a challenge. Overall, securing suppliers to support new store openings presents the greatest threat to IKEA's future growth.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    176 views2 pages

    IKEA Assessment

    Uploaded by

    Sohan Uprety
    IKEA faces several external challenges including opening new stores to drive growth, finding new suppliers, consumer concerns about deforestation, and increasing competition from other low-price retailers. Internally, IKEA may struggle with leadership changes as its founder Ingvar Kamprad steps down and the privately held company structure limits access to capital for expansion. Finding new suppliers that meet IKEA's efficient operations standards also poses a challenge. Overall, securing suppliers to support new store openings presents the greatest threat to IKEA's future growth.

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    © All Rights Reserved
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    of 2

    1.) List IKEA’s external and internal challenges.

    Looking at IKEA’s challenges, which ones do you


    think pose the greatest threat? Why? How would you address the challenges?

    IKEA faces significant challenges on moving forward and the external and internal challenges that
    IKEA had face are listed below

     External challenges:
     PESTAL
     PORTER FIVE FORCE

     Opening a New store is critical to drive future growth.
     Finding new sources of supply to support more store openings.
     Difficulty finding suppliers that are a strategic fit with its highly efficient operations.
     World’s consumers are becoming more sensitive to the issue of deforestation and its
    possible to link to global warming, IKEA would need to take into consideration finding a
    low cost material as replacement of wood.
     IKEA holds less than 5% of the home furnishing markets whereas in some European
    markets it holds 30% of markets which is also a challenges for IKEA.
     Increasing competitors of low price furnishing like, K-mart and target.

     Internal challenges:
     SWOT

     Without Mr. Kamprad’s involvement no strategic decisions have been made and he
    announced that he is stepping down from chairing inter IKEA which influences on the
    culture and organizations of the company.
     IKEA is privately held company through a complicated network of foundations from
    Netherlands, Lichtenstein and Luxembourg, which creates constraints in accessing large
    sums of capital needed for rapid global expansion.

    2.) Walmart entered a period of difficulties after Sam Walton stepped down. Do you anticipate
    IKEA having the same leadership transition challenges? Why or why not?
     Here, in the case of IKEA there might be much similar case like Walmart after Sam Walton
    stepped down because leader represent like an icon of the company and in the IKEA case after
    the stepped down of Mr. Kamprad the leadership will be taken further by his son’s and the
    business still stays within the family and I supposed that the son will would be somehow guided
    or advised by his father so there would not be difficult in the decision making process and
    achieving the results. However, if the leader initiates to bring any changes within the rules and
    regulation of the current IKEA’s strategy then it may lead to conflict and a lot of challenges may
    arise because IKEA runs in a global network and making such changes needs a lot of adaptation
    in order to sustain smoothly.

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