Ikea Case Analysis

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Prepared by: Solongo Ganbold Shay Cassidy Brittney Backen Mandy Alice Prepared for: Rolf Butz BADM 364 – E-Commerce Date: November 7, 2011 Table of Contents: Executive Summary 1 History of the company 2 IKEA’s Current and Future Profile 3 IKEA’s SWOT Analysis 4 IKEA’s Unique Sales Strategy 6 Industry Analysis 10 IKEA Competitors 11 Short-Term Recommendation 12 Long-Term Recommendation 13 Conclusion 15 Exhibits 16 Bibliography 20 Executive Summary 1. Introduction of IKEA. IKEA is the largest privately held furniture retailer that was founded in 1943 by Ingvar Kamprad. The company employs more than 127,000 workers and offers inexpensive ready-to-assemble furniture and targets middle class. There are 326 IKEA stores spread throughout 38 countries carrying more than 100,000 products. IKEA also operates its business online. 2. SWOT Analysis IKEA’s world well-known brand name, creative marketing model and the strong environmental protection concept stand out as its strengths. However, reaching so many different kinds of customers presents certain weaknesses and threats such as local restrictions, increasing instance of product recalls, barriers to enter lucrative market and the higher requirements of the environment. Therefore by grasping the opportunity of increasing its online sales and using renewable sources, IKEA still could bring more success into the business. 3. Unique Sales Strategy The company has a constant concept of offering inexpensive furniture. In order to attract more customers and present an ideal home environment with the products being sold, it displays room settings, located restaurants, play grounds and rest areas inside the store. It also offers loyalty programs, publishes IKEA Family Life magazine

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