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 brand image in the furniture industry
for about 68 years, which attract the customer groups and also guarantees
quality globally as a result, this would make customers feel secure when selecting
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 identify its weaknesses in sequence 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 certain product which would increase the sales growth and customer
satisfaction as well. However, due to increasing
population and market to demand would aid IKEA to get a chance to expand on
offering more products and also to 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 development in current business
which would lead to gain new acquisition whereas growth in technology would
bring customers closer to IKEA.
Threats can be Laws of environmental protections would affect IKEA,
whereas it would be difficult to maintain good quality and design at lower
prices when competition is speedily increasing because of different competitors entering the
market and providing low-cost domestic and furniture products would cause rick
to IKEA’s business.