IKEA SWOT Analysis, Competitors & USP

Stichting INGKA Foundation

Furniture Retail

Lifestyle and Retail

World of Inspiration for your home

Ready to assemble affordable furniture and home items  

People looking for home furnishing and items

Families Upper Class and Middle Class

Ikea offers great ready to assemble furniture with great buying experience

Below are the Strengths in the SWOT Analysis of IKEA:

1. IKEA is one of the world's leading furniture retailer

2. IKEA has approximately 200,000 employees across the world

3. It is present in almost 50 countries with more than 400 Ikea stores

4. IKEA is known for its easy and ready to assemble furniture across the world. Pre-assembled furniture is also offered by the company

5. It also offers services in the smart homes and flats category

6. IKEA is also known for its food offerings inside its big stores across the world

7. The company manufactures its own furniture which is then assembled by the buyer

8. It is now expanding in Asian countries to expand its business e.g. India, Malaysia, Philippines, Mexico etc.

9. IKEA website receives more than 2 billion users annually

10. The ecommerce portal offers all products, which can be purchased online and delivered home

11. IKEA has partnership with various organizations like UNICEF, Bill & Melinda Gates Foundation etc. for helping society during floods, earthquakes and other donations

Here are the weaknesses in the IKEA SWOT Analysis:

1. Many countries are still not accustomed to ready to assemble furniture but rather prefer pre-assembled furniture

2. In this competitive segment, it becomes difficult to increase market share consistently

Following are the Opportunities in IKEA SWOT Analysis:

1. IKEA can launch ability to order furniture online and option to assemble at home

2. IKEA can offer an option to either buy ready to assemble or pre-assembled at a cheap fee to open a new revenue option

3. Acquisition of furniture & office supplies brands can further strengthen its product portfolio

4. The brand can look to explore opportunities in different countries

The threats in the SWOT Analysis of IKEA are as mentioned:

1. Competition from low cost furniture manufacturers can affect business for IKEA

2. Pre-assembled furniture can be cheaper in many countries, which might lead to less margins

3. Economic policies & recession can lead to loss of business

Below are the top 10 competitors of IKEA:

1. Walmart

2. Asda

3. Amazon

4. Pepperfry

5. Tesco

6. Sears Holdings

7. Wayfair

8. Natuzzi

9. Home Depot

10. Urban Ladder