Business Development Canvas of IKEA

BUSINESS DEVELOPMENT CANVAS OF IKEA
Page 1 of 16

Table of Contents
1.0 Introduction................................................................................................................................3
2.0 SWOT........................................................................................................................................4
3.0 Designing a new business concept based on SWOT:................................................................5
4.0 BMC Elements affected the element of business model canvas:..............................................6
5.0 Graphical Representation of new generated BMC....................................................................7
5.1 New BMC:.............................................................................................................................7
5.2 Analysis of new BMC:...........................................................................................................8
5.3 Graphical presentation:........................................................................................................10
6.0 Implementation Considerations...............................................................................................12
6.1 Low-quality design:.............................................................................................................12
6.2 Business turbulence:............................................................................................................12
6.3 Intellectual Property Right Infringement.............................................................................12
7.0 Conclusion:..............................................................................................................................13
References......................................................................................................................................14
Page 2 of 16

1.0 Introduction
The concept of business model canvas may be considered to be one of the key aspects of
strategic management studies. The concept focuses on the business strategy sets and aligns the
same to the long-term corporate objectives so that the implementation and monitoring of
strategies may be optimised in most efficient manner. The given report deals with the discussion
and analysis of business model canvas of IKEA in the context of theoretical framework.
At the very outset of the study, the researcher provides an overview of the study followed by the
SWOT analysis of the present business model of the firm. In addition, the report identifies
designing a new business concept based on SWOT and highlights the BMC elements affecting
the business of the organisation. In the subsequent parts of the report, the researcher attempts to
graphically present the new BMC along with its critical evaluation. Moreover, the report also
provides the implementation considerations for the management for the newly devised BMC.
Finally, the report is wrapped up by way of concluding note.
It may be observed that the business model canvas of IKEA helps to deliver, produce and arrest
the value of the global market. The core aspect of the business model proposes a systematic
review and analysis of the business policies to endorse commercial opportunities (Erlyana &
Hartono, 2017). Considering the factors, the current study is going to discuss the points of risk
factors of the BMC contrasting with relevant theories so that a list of future attentions could be
projected to IKEA.
Page 3 of 16

2.0 SWOT
Strength
 Diversified product ranges from
international design excellence.
 Skilled labour with an efficient cost
structure is the main source of varied
suppliers (Fernando, Shaharudin &
Wahid, 2016).
 Cost effective promotional activity.
Weakness
 The demographic strategy minimising
its competitive advantage.
 Failing to maintain its control standards,
product quality and proper
communication with its stakeholders
(Madsen, 2016).
Opportunity
 Inheriting Crowd Sourced Designing
view can increase its ROI margin.
 Need to focus an online business mode
to grab the opportunities of emerging
market (Liu & Walsh, 2018).
 Presenting premium quality products
 Strategic partnership with other market
leaders
Threat
 Increasing labour cost.
 Extra services offered by the rival
brands.
 Low value proposition disrupting the
sales channel
Page 4 of 16