Detailed SWOT Analysis Report of IKEA: Business Development Strategy

This report presents a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of IKEA, a prominent global furniture and home goods retailer. The analysis begins with an introduction to the company and its business model. The strengths section highlights IKEA's strong brand recognition, diverse product range, cost-effective offerings, and global presence, including its effective organizational strategies. The weaknesses identified include the negative impact of credit card debt, high insurance claims, and a lack of expertise in certain product areas. The opportunities discussed include market expansion, green initiatives, and potential benefits from diverse product lines. The threats section focuses on intense competition from rivals like Walmart, which could impact IKEA's market share. The report concludes with a list of references including books, journals, and online resources that were used in the analysis.

SWOT Analysis - IKEA

Table of Contents
INTRODUCTION...........................................................................................................................3
SWOT ANALYSIS.........................................................................................................................3

INTRODUCTION
SWOT Analysis is an approach or tool to identify the various internal factors affecting an
organization. This report is in context to IKEA, a Sweden based company founded in 1943. It
produces and assemble furniture products(SWOT analysis of IKEA, 2015).
SWOT ANALYSIS
 Strengths –IKEA is an effective and solid retail mark in the worldwide market, it comes
the most esteemed best 100 brands on the planet. The organization is outstanding for
offering an extensive variety of items, values for cash and accommodation to the
customers around the world. IKEA has a huge number of stores throughout the world,
they utilize powerful and inventive authoritative strategies with a specific end goal to
develop and build up their business. This extension of the business is a noteworthy
quality of IKEA. Another best quality of IKEA is the worldwide exercises or tasks, for
example, joint endeavors, web based shopping and so on. Because of the vast size and
offices, they can buy crude materials in mass which grants IKEA to offer items to the
customers at modest costs when contrasted with the contenders. This causes them to
accomplish upper hand and come out on top(Popescu, 2013).
 Weaknesses –IKEA has built up an expansive association with altogether different items
in different parts. For example, furniture, kitchen appliances, The model which is being
utilized by the association has the immense shortcoming. Benefit and income have the
negative affected by the bed obligation of the Master-card which the organisation have.
Other than that, there is abnormal state of protection assert over the firm and this is the
reason benefit of the organisation is being diminishing step by step. Then again, the
greatest shortcoming which the firm have is that they don't have legitimate learning and
involvement in some area in which they are managing, for example, home accessories,
kitchen appliances and other new products. In this manner, the firm need to put parcel in
the innovation and data innovation area(Kim, Suresh and Kocabasoglu-Hillmer,2013).
 Opportunities: There are numerous open doors which IKEA have such as market
expansion and development. The company focuses on establishment of green movement
to protect the environment. Then again, wherein IKEA have been put resources into the
wide range of products such as home accessories, kitchen appliances etc, can give them

gigantic benefit from the diverse market, for example, Malaysia, South Korea, Thailand,
and Abu dhabi.(Prajogo,2016).
 Threats : As the organisation have a few openings, they can have diverse sorts of
dangers which can turn into the obstacles in the advancement of their business. The firm
is at the best most position with the most noteworthy target customers. Be that as it may,
they need to confront immense rivalry with the distinctive enterprises, for example,
Walmart, Toys R Us, Tesco These contenders can turn into the greatest risk for the firm
on the base of value, item, after deals administrations, conveyance methodologies,
advancements strategies and so on. Walmart whose furniture production have been
expanding step by step. It can happen that they can get a handle available offer of IKEA.
Subsequently, one might say that Walmart which is the greatest contender of IKEA can
turn into the risk for the company(Teece, 2015).

REFERENCES
Books and Journals
Kim, M., Suresh, N.C. and Kocabasoglu-Hillmer, C., 2013. An impact of manufacturing
flexibility and technological dimensions of manufacturing strategy on improving supply
chain responsiveness: Business environment perspective.International Journal of
Production Research, 51(18), pp.5597-5611.
Popescu, G.H., 2013. Macroeconomics, effective leadership, and the global business
environment. Contemporary Readings in Law and Social Justice, 5(2), p.170.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Teece, D. J., 2015. Business models, business strategy and innovation. Long range
planning, 43(2), pp.172-194.
Online
[SWOT analysis of IKEA, 2015]. Available through:
<https://www.strategicmanagementinsight.com/swot-analyses/ikea-swot-analysis.html>