IKEA SWOT analysis evaluates the brand by its strengths, weaknesses, opportunities & threats. In SWOT Analysis of IKEA, the strengths and weaknesses are the internal factors whereas opportunities and threats are the external factors.
IKEA is one of the leading brands in the lifestyle and retail sector. The article below lists the IKEA SWOT and includes its target market, segmentation, positioning & USP.
In this article:
Let us start the SWOT Analysis below:
The strengths of IKEA looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
A list of strengths is mostly the starting point in a SWOT analysis. 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 it can improve. 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
Read more about IKEA
The opportunities for any brand can include prospects of future growth. 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 external factors which can negatively impact its business. 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
Hence this concludes the IKEA SWOT analysis.
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Stichting INGKA Foundation
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
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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