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IKEA SWOT Analysis
IKEA SWOT Analysis
If you are conducting SWOT or PESTLE analysis or writing a case study on IKEA, you need to
talk about IKEA marketing strategy. In case, you have been provided with a case scenario; you
should list out the issues. You must shed light on the supply chain, revenue, etc.
1. Distribution Strategy
In conjunction with material suppliers, product developers, and other supply chain stakeholders,
IKEA creates a strong network. The company has more than 1600 suppliers in 51 nations. The
company has an efficient delivery system to transport products to 380 stores all over the world.
The goal of the IKEA's supply chain is to have a centralized distribution centre, reduce delivery
cost, and guarantee products' quality. But, with multiple markets, the company is looking
2. Competitive Advantage
Compared to its competitors like Walmart, Sears, Wayfair, IKEA coordinates with designers
across the globe and welcomes their input. The furnishing products are eco-friendly and
artistically designed. Moreover, the company enjoys a strong supply chain globally. IKEA's
annual revenue is around 41.3 billion USD because it has a good customer redressal system. This
has resulted in a positive word of mouth promotion. Do not forget to conduct extensive
competitor analysis.
3. Brand Equity
In your IKEA marketing strategy paper, you must highlight branding, CSR activities, and co-
messages and design. It runs promotional advertisements through newspapers, billboards and on
other digital platforms. Most importantly, IKEA holds a great Swedish heritage, despite its
international success. Thus, it has an immense local connection and unique brand image.
IKEA uses demographic, psychographic and geographic segmentation for lead scoring and
retaining customers. It has a strong branding campaign on digital platforms like Facebook,
Instagram, Twitter, and it has a unique tagline. It stands true to its slogan "Affordable solutions
for a better living" and has transformed itself from product-based company to value-based
In the past five years, IKEA has been given a run for its money by companies like TepeHome,
Kelebak, EnglishHome, etc. This is because these companies are focusing on aggressive online
and offline marketing and market penetration. IKEA, in this regard, has been more complacent.
And the other companies are taking advantage of this aspect. Furthermore, IKEA's marketing
Hopefully, you will face no issues while writing IKEA marketing strategy.