Retailing is an activity of enormous significance to most developed countries. Many parts of the world have seen a remarkable changing within retailing industries, as retailers have ceased to play the subordinate part in the marketing of consumer goods. Retail is also one of the social institutions, as about 30 per cent of what we spend goes on products and services that we buy from retailers. As the explanation above, IKEA is the perfect example to analyze within Singapore retailing industry.
The IKEA vision is, “To create a better everyday life for the many people.” IKEA is Swedish company that designs and markets furniture, home accessories and home appliances. Founded by 17 years old Ingvar Kamprad in 1943, which lately was listed as world’s richest people, the IKEA name combines the initials of the founder (IK), and farm and village where he grew up, Elmtaryd and Agunnaryd (EA). IKEA is known for modern architectural designs, continuous product development, low-cost products, operational details, and the eco-friendly simplicity of the interior design. Today, IKEA, which is owned by Stichting INGKA Foundation, operates and own 351 stores in 43 countries, with revenues for €28.506 billion in 2013 (Ikano, 2014).
This assignment will go through the general environment analysis, the competitive environmental analysis, and recommendations due to the opportunity and coming threat. These analyses are provided to analyze the environment surrounding IKEA business which will be useful for the future of furniture retailer market.
3.1. General Environment Analysis
The general environment is consisting of decisions in the larger population that has a major impact on the companies and firms within it. Firm have a responsibility to scan, monitor, forecast, and asses those elements as those are the greatest importance in the industry. The outcome of those efforts particularly result in the recognition of...