A Closer Analysis of IKEA

Running head: A CLOSER ANALYSIS OF IKEA
A closer analysis of IKEA
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1A CLOSER ANALYSIS OF IKEA
Executive Summary
Aiming to plunge into an in-depth analysis of IKEA, this report strives to explore various
nuances associated with a critical knowledge of the company. Incorporating the PESTEL
analysis and Porter’s five forces model, this report endeavors to identify and enlist the various
problems and threats that challenge the existence and revenue generation of firms such as IKEA,
UK. The report also endeavors to categorize the key points and ideas. Incorporating a holistic
and comprehensive view of the various factors, this report goes onto conclude that a
multinational firm such as IKEA needs to incorporate certain strategies to throttle competition. It
is also recommended that this company needs to identify the changing consumer preference and
devise strategies to throttle the rival companies.

2A CLOSER ANALYSIS OF IKEA
Table of Contents
PART A...........................................................................................................................................3
Introduction......................................................................................................................................3
PESTEL Analysis........................................................................................................................3
Political....................................................................................................................................4
Economic.................................................................................................................................4
Social.......................................................................................................................................5
Technological..........................................................................................................................5
Environmental..........................................................................................................................5
Legal........................................................................................................................................5
Porter’s Five Model.....................................................................................................................6
Threat of Substitute..................................................................................................................6
Threat of New Entrant.............................................................................................................6
Rival Firms..............................................................................................................................6
Bargaining Power of Buyers....................................................................................................7
Bargaining power of the Suppliers..........................................................................................7
Key-Points...................................................................................................................................7
PART B...........................................................................................................................................8
The Risk of changing social demand and threat of substitution..................................................8
The risk of rival firms and new entrants impending the future prospects...................................9

3A CLOSER ANALYSIS OF IKEA
The risk of the surging buying power of the buyers in the economic environment..................10
The rising bargaining power of suppliers in the economic environment..................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................11