Ikea Case Study

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Ikea Case Study

• Assignment Prime

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About Ikea

• The largest furniture retailing company
• Loaction 433 locations across the globe
• Headqarter Netherlands
• Revenue Approx. US 45.4 billion

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How it Became a Billion-Dollar Brand?

• The European brand specializes in providing
  kitchen and home appliances, along with
  accessories. Currently operating in 52 countries,
  the company opened its first store in Sweden with
  the name Möbel-IKÉA. Germany (53) leads the race
  of the number of stores followed by United States
  (50).
• IKEA is an acronym for
• I Ingvar
• K Kamprad
• E Elmtaryd, the name of the family farm where
  Ingvar Kamprad was born
• A Agunnaryd, the hometown of the owner

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Ikea SWOT Analysis

• Strength
• Strong brand presence
• Innovating design concepts
• Cost-cutting methods
• Powerful financial position in terms of tangible
  assets and resources

• Weakness
• Weak market presence in Asian region
• Inadequate flexibility
• Negative reputation
• Environmental problems

• Opportunity
• Increasing brand presence in Asian countries
• Adding cost-effective products in the portfolio
• More use of innovating technology
• Focus on CSR (Corporate Social Responsibility)

• Threat
• Competitive market
• Increasing cost of raw materials
• Global economic crisis
• Financial crisis in developed countries

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Ikea PESTLE Analysis

• P Political
• Foreign trade policies, trade restrictions,
  bureaucracy, government policies, etc., are some
  elements that affect the operation management of
  a firm politically. But, you need not worry as
  your online case study on Ikea will have all the
  basic ingredients for an A. It will be drafted
  after having an insight into the political
  situation of 52 countries in which the brand have
  its presence.
• E Economic
• Are you wondering, What are the economic factors
  influencing Ikea? If yes, then Ikea case study
  solution from online Australian writers will
  answer all your questions. For instance, the
  internal exchange rates, taxation, labour cost,
  unemployment rate, cost of raw materials play a
  vital role in the profit ratio. Therefore, the
  academic paper will be crafted after having a
  brief about the economic scenario of a country.
• S Social
• As the name suggests, the social factors related
  to the society, such as customer's behaviour,
  demographics, change in lifestyle, cultural
  taboos, and many more can also cause a hurdle in
  the successful journey of an organization.
  However, the moment you ask our experts, "Can you
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Ikea PESTLE Analysis

• T Technological
• The emergence of technology has given a sigh of
  relief to the big companies in terms of
  production, distribution, and communication of
  the products services. Similarly, the Ikea
  operations management case study service
  providers believe that the organization has
  started investing heavily in the augmented
  reality to provide better customer experience.
  Other components taken into consideration by the
  case study writers are technology initiatives,
  emerging technologies, the technology used by the
  competitors, and automation.
• L Legal
• A company should be familiar with the legal
  jurisdictions of a country in which it is willing
  to expand its business. And, the same goes for
  Ikea as well. According to the online innovation
  case study Ikea help providers, if it is planning
  to expand its market in the Asian countries, then
  it must be well-grasped with the laws regarding
  intellectual property, consumer protection,
  safety and advertising standards, product
  labelling, etc. The moral of the story is that
  your document will have all the legal factors
  incorporated.
• E Environmental
• The geographical and surrounding environment
  impact the sustainable development of an
  enterprise. Due to this, Ikea is emphasizing
  largely on environmental factors such as climate
  changes, carbon footprints, waste management
  policies, and environmental regulations, to name
  a few. Furthermore, the Ikea global marketing
  strategy case study writers explains that the
  brand has now started taking these factors
  seriously after the negative controversy in
  recent time.

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