According to Proctor (2000) SWOT analysis is a method exclusively
designed to identify the proper business strategies for an organisation to
follow, which involves relating internal strength and weaknesses and external
opportunities and threats.
of the powerful strengths of IKEA is its strong brand image of it’s in the
furniture industry for about 68 years, which attract the customer groups and
also assures quality globally as a result, this would make customers feel
secure when choosing IKEA. Also, its vision which mentions about making day to day
life better for people. Whereas, IKEA
has the key strength for retaining and attracting new customers of IKEA. Method
IKEA using is to measure its strengths is known as Key Performance Indicators
(KPI) includes to maintain a long-term relationship with its suppliers and checking
developments using it (IKEA, 2018).
has to recognize its weaknesses in order to improve and manage them. This help
to set objectives and also to develop new strategies. Whereas, different
countries have different roles and few countries do not control the working
conditions which might cause the supply chain of it. Also, in which the size
and the scale of the global business could make IKEA hard when it comes to
controlling the standard and quality of its products. On the other hand, IKEA
stores located outside of the city can only target consumers that have
transportation facilities and may not be accessible to pedestrians which can be a major weakness to the company.
It will be an
opportunity for IKEA if it tries to lay out new stores that would be easy to
find the specific product which would increase the growth in sales and customer
satisfaction as well. However, increasing
population and market to demand would aid IKEA to get a chance to expand on
offering more products or extend new stores in new locations. At the same time, by developing E-commerce site and local company
associations will give an opportunity to accomplish growth in present business
which would lead to gain new acquisition whereas development in technology
would bring customers closer to IKEA.
Threats can be Laws of environmental protections would affect IKEA’s
business activities, whereas it would be difficult to maintain good quality and
design at lower prices when competition is rapidly growing because different competitors entering the
market and providing low-cost household and furniture products would cause the threat
to IKEA’s business.