ikea
TRANSCRIPT
IKEASWOT ANALYSIS
Presented by:-Ankita SapraDivya KapoorJasleen Kaur
Shreya Agarwal
Introduction
Founded:1943 in Älmhult, Småland, SwedenType: PrivateHeadquarters: Leiden, The NetherlandsIndustry: Retail (Specialty)Products: self-assembly furnitureRevenue: € 22.71 BN (FY 2009)Employees: 127,800 (FY 2008)Website: www.ikea.com
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 & Yellow; 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.
VISION 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 OpportunitiesThreats
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 frames”
Threats External factors beyond an organization’s control places the organization mission or operation at
risk. Classify them by their “seriousness” and
“probability of occurrence”.
STRENGTHS 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
Key Performance
Indicator
assess
vision
Long term goal
Setting targets and monitoring
progress
Ex . : IWAY approved suppliers
WEAKNESSES
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.
THREATS
THREATS
Threats to IKEA may stem from: SOCIAL TRENDS – such as the slowdown in first time
buyers entering the housing market. This is a core market segment for IKEA products
MARKET FORCES – more competitors entering the low price household and furnishings markets. IKEA needs to reinforce its unique qualities to compete with these
ECONOMIC FACTORS –the 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
SWOT’S CONTRIBUTI
ON
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.
CONCLUSIONIKEA 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 –Being sustainable and responsible is not just good for
customers and the planet, it is also good for business.