IKEA Company
IKEA Company
IKEA Company
Motivation:
We chose this company because it's on the international markets of furniture for a long time and it
has a sustainable success. The strategy of this company is interesting because it's different than
other companies. It's also a popular company in the global field. The company is well knowed brand
image because of it's performance and high efficiency in the work process, safe work environment
and in relationship with customers. The company is unique in the sence of competitiveness.
In this project we do marketing analysis of the strategy of the company and brand.
SWOT Analysis
2
Strengths Weaknesses
-strong international brand recognition -much reliance on Europe,(with 82% of stores
located in this region)
-low product prices
-difficulty in meeting customer expectations of
-solid sales performance
service and price
-total control of its design, pricing and supply of
product ranges globally
-product portfolio that includes consumer
lifestyles and budgets
Opportunities Threats
-expansion into emerging markets in Asia and -over saturation of the market
Eastern Europe -competitors imitation
-development of premium lines within existing -drop on sales of continued depressed economic
stores or new high street fascias conditions in its core European market
-complementing the out-of-town stores -adverse effect of a weak dollar on sales in the
-increase of sales through the development of e- US
commerce sites in each country -the political and economic instability of the
-improve customer service Chinese and Russian markets (the company
planed to invest heavily in the short-mid term)
-reduce the volume demand on existing stores
Conclusions
IKEA was long term oriented strategy which included the details of production, suppliers,
constumers relationship in particular. The focus in lead time to tried to help the suppliers to reduce
the leadtime and partners by technical advices training superviser. The design of the product is
based on few criterias of style. The company have a strong logistics framework. Maneging the
transportesing and other issues separality. Logistics develop the details of the strategy
implemantion. The goals of the strategy is to reduce the cost of the process in other to meeting the
best way of clients needs. The suppler benefits, contractual trust in business relation long product
life cycles and investment are the key elements of the basics the strategy.