IKEA: Principles of Marketing Analysis

Principles of Marketing
Name of the brand: IKEA
PREPARED BY:
PREPARED FOR:
DATE:
Table of Contents

Principles of Marketing
Introduction...............................................................................................................1
Macro environmental factor......................................................................................1
PESTLE ANALYSIS.............................................................................................1
Micro environmental factor.......................................................................................2
Porter five force model of IKEA............................................................................2
Competitor analysis...................................................................................................3
SWOT ANALYSIS...................................................................................................4
References.................................................................................................................6
1

Principles of Marketing
Introduction
In this paper the discussion will be made on the topic IKEA. The purpose of the report is
to analyze the internal and external factors or macro and micro factors in context to IKEA. In the
first phase of the report, the macro environmental factors will be considered in which focus will
be given on PESTLE factors. In the next phase of the report the discussion will be made on the
micro environmental factors that will directly impact the operation of the company. The micro
factors will be related to PORTER FIVE FORCES. In the next phase the focus will be given on
the competitor’s analysis in which the discussion will be made on the competitors prevailing in
the market.
In the last phase of the report, the emphasis will be given on the SWOT Analysis that
will help to identify strength, weakness, opportunities and threats.
Macro environmental factor
PESTLE ANALYSIS
Political factor
It has been investigated that there are more than 41 countries in which the company
operates. In the last past years it has been seen that in the Australian market it is important to
reduce the political barriers in context to foreign brands which now have enhanced the presence
of the international brands in the markets. IKEA is also focusing on dominating the Asian
markets. The red tape is always considered as the major worry for the foreign brands available in
the market. Due to political instability the supply chain of the company is also affected which is
located in Australia (Beske, Land & Seuring, 2014).
Economical
There are many brands in the market which are in bad condition at the time of recession.
It has been seen that recession declined the entire purchasing power of the people. In the present
scenario, it has also been seen that economic situation is getting better and also the employment
rate is improving which has directly affect the sale of the company with the higher profits.
Social factor
2