Published by MBA Skool Team, Last Updated: August 29, 2021
SWOT analysis of IKEA analyses the brand by its strengths, weaknesses, opportunities & threats. In IKEA SWOT Analysis, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like IKEA to benchmark its business & performance as compared to the competitors. IKEA is one of the leading brands in the lifestyle and retail sector.
The article below lists the IKEA SWOT, competitors and includes its target market, segmentation, positioning & USP. Let us start the IKEA SWOT Analysis:
For IKEA, SWOT analysis can help the brand focus on building upon its strengths and opportunities while addressing its weaknesses as well as threats to improve its market position.
The strengths of IKEA looks at the key aspects of its business which gives it competitive advantage in the market. Some important factors in a brand's strengths include its financial position, experienced workforce, product uniqueness & intangible assets like brand value. 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
The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. 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
The opportunities for any brand can include areas of improvement to increase its business. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. 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 for any business can be factors which can negatively impact its business. Some factors like increased competitor activity, changing government policies, alternate products or services etc. can be threats. 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
There are several brands in the market which are competing for the same set of customers. Below are the top 10 competitors of IKEA:
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
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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