Swot Analysis

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IKEA’s SWOT analysis Strengths • Volume commitments – IKEA believes in creating long-term partnerships with its suppliers in order to achieve this. By committing to buying large volumes over a number of years IKEA can negotiate lower prices. This also benefits the suppliers because they enjoy the greater security of having guaranteed orders. • IKEA also has a strong concept which is offering a wide range of well designed, functional products at low prices • IKEA has definite and clear vision for it’s operation -‘to create a better everyday life for many people’ • A strong global brand, which attracts consumer groups. IKEA promises the same quality and range worldwide. • IKEA’s sources materials are close to the supply chain to reduce transport costs. • IKEA products have ‘democratic design’ – reaching an ideal balance between function, quality, design and price. IKEA’s ‘Cost Consciousness’ means that low prices are taken into account when each product is designed. • KIEA had increased the usage of renewable materials – IKEA improved its overall use from 71% in 2007 to 75% in 2009. • ‘Smarter’ use of raw materials – IKEA improved the use of recycled or reclaimed waste products in energy production across all stores from 84% in 2007 to 90% in 2009. • Economies of scale – IKEA buy products in large amount at cheaper prices. • Delivering products directly from the supplier to IKEA stores. This slashes handling costs. • Some of IKEA’s products had been amend through the years by reducing the amount of raw materials needed for the products. Opportunities 
 • Sustainable use of resources. IKEA aims for zero waste to landfill, wastewater treatment 
and programmed to reduce its use of water. • IKEA aims to reduce energy use, use more renewable energy, 
cut its use of air transport and reduce packaging. Its green transport initiative includes an aim

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