Bachelor of Arts Business Management Studies
IKEA Strategic Management
1. Executive Summary 1
2. Introduction of The Company Background 2
2.1 IKEA Current Situation 2
2.3 Objectives 3
3. Environmental Analysis and application of theories 4
3.1 IKEA Current Strategies 4
4. Analysis Tools 6
4.1 Michael Porter’s Five Forces Analysis 6
4.2 SWOT Analysis of IKEA 9
4.3 Recommendation 12
5. Analysis and Evaluation 13
5.1 Current Products 13
5.2 Market & Strategies 13
5.3 IKEA Business Model 14
5.4 Key Success Factor 15
5.5 Areas of weakness 16
5.6 Strategic Initiatives 16
6. Conclusion 17
6.1 Recommendation 17
6.2 My Ideas 18
6.3 Implications 18
7. References 19
1. Executive Summary
IKEA is the largest furniture retail industry and have a strong position as a furniture retailer in different market. IKEA strategies have an important role to keep the company to stand out in competitive market and to invest for future growth.
In order to understand about IKEA analyses have been provided including current strategies, SWOT (Strenght, Weakness, Opportunity and Threats) and evaluation about its products, market and strategies, key success factors and business model
Recommendation have been provided to IKEA which is development on the company product design and improve their brand awareness in Asian market. There is also an idea to improve company operations which is provide more employees in the field and provide a free shipping delivery with minimum purchasing
2. Introduction of The Company Background
IKEA was established in 1943 by Ingvar Kampar in Älmhut, Sweden. It’s all began when Ingvar Kamprad is 17 years old live in the small village of Agunnaryd in Sweden. The furniture was introduced in IKEA product range in 1948 and that is when they began to design their own furniture and IKEA name became famous in the market then in 1958 is when the first IKEA retailer stores to opens in Sweden which is the largest furniture display in Scandinavia. In 1963 is when IKEA expand their market by opening branch outside of Sweden which their first branch is located in Norway (IKEA,2017). Nowadays IKEA continue to growing and own 389 stores in 48 countries and have around 150.000 employees.
2.1 IKEA Current Situation
IKEA success in the furniture retail industry and nominated as one of the largest furniture retailer (FORBES,2012) and IKEA still have a strong financial position in the market “As a result of everyone’s hard work, sales grew to EUR 34.2” (IKEA,2016). company sales always increase each year the company success to maintain their sales growth which lead to solid financial position. IKEA is well known for its functional, high quality, and sustainable products in low prices.
IKEA is dominating the furniture retail industry market and company have a strong branding towards people due to its quality high quality products in low prices and the company always come up with the various of new ideas and...