Ikea strategy in Covid19 : Impact, whether it change price/ quality/ distrobution

1. Impact: The covid 19 pandemic effect heavily disrupt and sales revenue even closing some
stores in covid 19 pandemic in 2020.

Ikea was forced to give substantial financial help to some of its hundreds of external suppliers
earlier this year to stop them going bankrupt and allow them to pay workers as lockdown
restrictions in much of Europe and parts of China heavily disrupted its production. Ikea had given loans
and funded their working capital

About one in 10 of Ikea’s stores are closed — in France, Israel, Ireland, Czech Republic, Slovakia,
Belgium and the UK — but the effects have been mitigated by allowing customers to collect online orders
from some shops. At the peak of Covid-19 in April, about three-quarters of Ikea’s 450 stores were
closed — on average for seven weeks each.

However impact of a second round of Covid lockdowns in Europe as imcomparable to the first one. The
big thing is Ikea don’t stop production. It is postively signal because Ikea change customer habit
convert to ecomerce platform

2. Price and sales revenue

On the second round of Covid 19 pandemic. Residents start to have using vaccin can prevent a part of
disease. When stores reopened there was a huge of sales coming in. People want to improve their
home as they are in them for most of the day. There’s been a super strong acceleration in demand and
Ikea are producing like never before. The price reduce up to 30% on best selling prodcuts to make their
product affortable for customer . Ikea’s net profit rose 17% to 1.73 billions euro to the end of August
2020, although as revenue declined 6% 23.6 billions. Moreover, during that period of time when covid
as well as recruitment freezes in serveral businesses Ikea got benefited from lower purchase volumed
and prices from supplier. Ikea have developed money into pay attention making its online stores which
combine as physical shop. It opened offcially ecomoerce site in Chinna adding first ever test in
selling a third- party website Alibaba Tmall. There are 3600 products furniture house

CONCLUSION:
We have paraphrased again Ikea’s strategy which they have already operated for many years. Ikea is
known globally focus its low prices and innovatively designed furniture. They have got own values of
mission, vision and core include affordable life and create a better life as well desire for innovation. Ikea
successfully focuses on narrow customer segments and provides low-cost services and products. They
have built diversity strategy. Ikea makes PESTEL analysis, 5 FORCES PORTER. Next, they create
strategy group mapping include geographical reach and huge stores chain, product lines, and depth of
their line. One more internal environment consists of resources and capabilities. The resources would
have franchise, range& supply and industry While the Ikea capabilities HR, value chain, distribution
channel and economies of scale production output. We mention a challenging period time when Covid 19
cause a heavy crisis. Fortunately, Ikea‘s easy adaptability and maintain their sales value as well net profit
annually. They convert e-commerce platforms that a trending market contains opportunities. Particularly,
Swedish furniture enter the most population market through opening e-commerce site plus Alibaba Tmall
is a local platform.