Strategic Management Techniques: IKEA’s Case

Running Head: Case of IKEA
Strategic Management Techniques: IKEA’s Case

Case of IKEA 1
Executive Summary:
This report deals with the analysis of the external environment of IKEA which is a Swedish
entity operating as a leading retail of home furnishing products, using the prominent
techniques of strategic management i.e. PESTLE analysis and Porter’s five forces analysis.
Pestle analysis covers the impact of political, economic, social, technological, legal and
environmental forces related to the business corporation. There are various forces outside the
business environment that have direct or indirect influence on the company’s operations. It is
important for every business organisation to take into consideration the impact of each force
that impacts its business performance in order to ensure its survival and further growth.

Case of IKEA 2

Case of IKEA 3
Table of Contents
Executive Summary:.............................................................................................................................1
Introduction:..........................................................................................................................................4
PESTLE Analysis:....................................................................................................................................4
Political forces:..................................................................................................................................4
Economic forces:...............................................................................................................................5
Social forces:......................................................................................................................................5
Technological forces:.........................................................................................................................6
Legal forces:.......................................................................................................................................6
Environmental forces:.......................................................................................................................6
Porter Five Forces Model:.....................................................................................................................7
Threat of substitute...........................................................................................................................7
Threat of new entrants:.....................................................................................................................8
Existence of rival firms:......................................................................................................................8
Bargaining power of suppliers:..........................................................................................................8
Bargaining power of customers:........................................................................................................8
Conclusion:............................................................................................................................................9
References:..........................................................................................................................................10