SWOT ANALYSIS (IKEA)

Arcega, Kezziah Josh T.

V-BSA
Strength

It provides sustainable solutions to efficiently make use of both raw

material and energy that reduces the cost.
Resources and production are IKEAs competitive advantage that
makes them known in the home furnishing retailer industry.
Establishment of excellent brand reputation puts them as a trustworthy
producer of furniture.
In financial aspect, IKEA focuses on the cost where it reduces non-value
added cost of product.
IKEA is a trendsetter when it comes to furnitures style.
Diversified product portfolio where they also established different
business.
Low price in which customers can afford to buy.

Weakness

Decrease in quality product and product lifespan.

Product portfolio is common in nature, products are also being offered
by other businesses.
Labor aspect are being forsake just to cut down the cost and IKEA
failed to follow some required production practices that result to
negative publicity.
Balancing cost reduction and quality.

Opportunities

More innovative products

Use of E-Commerce
Since they are also targeting international market, IKEA should also be
open to online distribution.
Augmented demand for eco-friendly products.

Threats

Increasing number of competitors.

Modernization of production system and marketing
Susceptible to social changes, customers are looking for more
innovative products based on their needs and preferences.
Economic pressure