IKEA SWOT ANAL ANALYSIS YSIS
Presented by:Anki An kita ta Sa Sapr pra a Divy Di vya a Ka Kapo poor or Jasl Ja sleen een Ka Kaur ur Shre Sh reya ya Aga Agarwal rwal
Introduction ounded ded:19 :1943 Foun
in Älm Älmhult hult,, Smål Smålan and, d, Swed Sweden en
Type: ype: Priv Privat ate e Head Headqu quart arter ers: s: Leid Leiden en,, The The Neth Nether erla land ndss Indu Indust stry: ry: Retai etaill (Spe (Speci cial alty ty)) Produ Product cts: s: selfself-as assem sembl blyy fu furn rnit itur ure e Revenue: ½ 22.71 BN (FY 2009) Empl Em plo oyees: ees: 127, 127,80 800 0 (FY 2008) Website ebsite:: www.ik www.ikea.c ea.com om
Acronym- I (Ingvar)-Founder·s first name K (Kamprad)-Founder·s last name E (Elmtaryd)-Farm where he grew up A (Agunnaryd)-Home village Logo- Blue & Y ellow; The colors of Swedish National Flag.
HISTORY 1943: founded in Sweden by Ingvar Kamprad; ´ 1951: published the first IKEA furniture catalogue; ´ 1955-1956: designed own furniture tested to use flat packages for shipping; ´ 1987: opened the first store in warrington ´ 2001: established IKEA Rail ´
HISTORY: FIRST STORE AROUND THE WORLD ´ ´ ´ ´ ´ ´ ´ ´ ´ ´ ´ ´ ´
1958: in Sweden 1963: in Norway 1969: in Denmark 1973: in Switzerland 1974: in Germany 1975: in Australia 1976: in Canada 1981: in France 1985: in USA 1987: in UK 1989: in Italy 1998: in China 2000: in Russia
265 shopping centers 36 countries
HISTORY: IMPORTANT DESIGNS IN THE PAST 1963: Marian Grabinski designed MTP Bookcase.
1974: Olle Gjerloy Knudsen and Torben Lind designed SKOPA Chair.
1985: Niels Gammelgaard designed MOMENT Sofa.
1994: KUBIST Storage Units appeared.
V ISION AND MISSION STATEMENT
The IKEA vision globally is to create a better everyday life for the many. Mission:-
At IKEA Tempe we are dedicated to giving to the local community well being regarded by our customers and co-workers as a social responsible company"
INTERNATIONAL BUSINESS
IKEA stores around the world "United States, Denmark, Germany, Spain, Israel, Saudi Arabia,"
WHAT¶S A SWOT ANALYSIS? Strategic
planning method used to evaluate a project·s
Strengths Weaknesses Opportunities Threats
SWOT: INTERNAL FACTORS ´
Strengths
´
positive tangible and intangible attributes. internal to an organization. within the organization·s control.
Weakness
factors that are within an organization·s control. detract from its ability to attain the core goal. shows areas required to be improved.
SWOT: EXTERNAL FACTORS ´
Opportunities
´
External attractive factors represent the reason for an organization to exist and develop. Identify opportunities by their ´time framesµ
Threats
External factors beyond an organization·s control places the organization mission or operation at risk. Classify them by their ´seriousnessµ and ´probability of occurrenceµ.
STR ENG THS OF IKEA
STRENGHTS ´ ´ ´ ´ ´
´
Material
usage as required Strong global brand Its vision Strong concept Use of waste or recycled materials. Eg.: the NORDEN table and the OGLA chairs Democratic design:Function Quality Design Price
´ ´ ´
´ ´
Volume
commitments Economies of scale Sourcing materials close to the supply chain to reduce transport costs. Delivering products directly from the supplier Using new technologies
STRENGTH ANALYSIS/MEASURE
vision Key Performance Indicator
Setting targets and monitoring progress
assess
Long term goal Ex . : IWA Y approved suppliers
W EAKNE SSE S OF IKEA
WEAKNESSES
Size and scale of its global business ´ Need for low cost products ´ Good communication with its consumers and other stakeholders. ´
OPPORTUNITIES
Growing demand for greener products ´ Growing demand for low priced products. ´ Demand for reduced water usage and lower carbon footprints. ´
STEPS TO GRASP OPPORTUNITIES
Solutions for a sustainable life at home Sustainable use of resources. Reducing carbon footprint. Developing social responsibility. Being open with all its stakeholders.
THR EA TS
THREATS
Threats to IKEA may stem from: SOCIAL TRENDS ² such as the slowdown in first time buyers entering the housing market. This is a core market segment for IKEA products
MARKET FORCES
² more competitors entering the low price household and furnishings markets. IKEA needs to reinforce its unique qualities to compete with these ECONOMIC FACTORS ²the recession slows down consumer spending and disposable income reduces
WAYS USED TO MINIMIZE THREATS If a company is aware of possible external threats, it can plan to counteract them. IKEA uses its particular strength to defend against threats in the market. Online help to guide customers to a more sustainable life leads to control SOCIAL THREAT
Economies of scale leads to barriers to entry, by which MARKET THREAT was minimized Low priced, good quality and design product offered by IKEA increases demand for product even in recession and in this way overcame ECONOMIC THREAT
S W OTS CO N TR IBU T IO N
CONTRIBUTION OF SWOT ANALYSIS TO IKEA¶S BUSINESS GROWTH
improve performance by reducing its weaknesses and using its strength ´ able to generate the strong growth by grasping opportunities available in market and by minimizing its threats. ´ retain a strong identity in the market. ´
SIMPLE RULES FOR SWOT ANALYSIS ´
´
´ ´ ´
´
Be realistic about the strengths and weaknesses of your organization or group. Distinguish between where your organization is today, and where it could be in the future Be specific: Avoid gray areas. Always analyze in relation to your core mission. Keep your SWOT short and simple. Avoid complexity and over analysis Empower SWOT with a logical conceptual framework.
CONCLUSION IKEA is a well-known global brand in home furnishing with hundreds of stores across the world. It assess its external and internal environment, which reveals its strength, weakness, key opportunities it can take advantage of and threats it must deal with. IKEA responds to both internal and external issues in a proactive and dynamic manner by using its strengths and reducing its weaknesses. IKEA·s passion combines design, low prices, economical use of resources, and responsibility for people and the environment. Through this, IKEA is able to generate the strong growth it needs to retain a strong identity in the market. IKEA has discovered a business truth ² Being sustainable and responsible is not just good for customers and the planet, it is also good for business.
