Strategic Management Analysis of IKEA

Business Retail

IKEA 1
Introduction
Strategic Management is the process of monitoring and analysis the environment of the
organisation. This process helps the company to develop the strategies in the terms of
achieving the success in the market. There are different types of models that help in analysing
the environment of the company such as PESTLE and SWOT analysis. In this report, the
IKEA has been taken into consideration in order to identify the position in the market. IKEA
is a Swedish company which is operated in a multinational group that designs and sells the
household goods and services to the consumer (IKEA, 2019).
Internal Analysis
SWOT Analysis
Strength
Brand value is the main strength of the company. It has been evaluated that the company
currently stands at the 46th position in the world. It also comes under the top 10 retailing
companies in the world.

IKEA 2
(Source: IKEA, 2019a)
The company also provides the quality of product to its consumers. It has been evaluated that
it has a unique product as compared to the products of other companies
Weaknesses
The company is operating in the different countries across the world due to which it faces
social issues such as Corruption and many others. It has been evaluated that the company
caught into the corruption case in Russia. The negative image of the company is the main
weakness. As the company is operating in different countries that is why it has to follow the
different rules and regulation due to which the organisation face heavy loss (Ansoff, Kipley,
Lewis, Helm-Stevens, and Ansoff, 2019).
Opportunity
Consumers are getting more conscious about the prices of the product this why it is important
for the company to adopt the cost leadership strategy. Cost leadership strategy helps to attain