Ikea Swot Analysis

KStrengths 1. Supply stove strategies. 1. 1. Packaging concept. The flat packaging is cognise of its IKEA which is very effective for transporting products beca expenditure more products house be shipped at the same(p) time. Consequently, transportation cost result be cheaper. Furthermore, the flat packaging turn outs more or less materials usage. However, it has some weak argonas to work on such as security system and unitization. 1. 2. New unit load carrier. IKEA has pass waterd cutting carrier which is called Loading shelf, is a flexible unit load carrier.It can remedy capital as a theatrical role of total logistic solution and too make the transport be more volume. The loading ledge has been utilise for two years within IKEAs supply chain and the ending has satisfied for IKEA because it can knock down damages in skilful processes. 1. 3. crock up voice communication. IKEAs products are delivered directly from supplier to unlike stores because this is the cheape st way for distribution. Furthermore, it can decrease the transportation distance and lower carbon release. In precondition of process, the goods do not transport to distribution c throw in because it can be directly to stores.This process is very efficiency and special one. So, they can save the cost of one time transport. Figure 1 Direct delivery distribution. 1. 4 Sustainable relationships. IKEA focuses on persistent-term supplier relationship. IKEA usually profane a braggy volume for a plenty of years. As a result, they can negotiate at low price. Moreover, the suppliers also gain advantages because their products are guaranteed ordering. 2. IKEAs culture and concept. 2. 1. Powerful worldwide company. IKEA has strong global injury and concept which is guaranteed good quality at lower price. . 2. IKEAs visual sense IKEA notes their goal that to create a better everyday life for some people. 3. Environmental perspectives. 3. 1. Green process. IKEA uses materials that are e nvironmentally friendly. For good example, renewable materials, recycle waste products, and so on 3. 2. New technology. Using new technology to reduce the amount of raw material needed. 3. 3 Effective transportation. IKEA transports their products by employ rail and sea as much as possible to reduce the impact on environment. Opportunities 1. Environmentally channel.IKEA believes that environmentally focused business brook will results in good return even in a price sensitive market. Nowadays, consumers demand in green products is pass over to increase. 2. execrable price products. IKEA depends on the low-cost manufacturing countries as China and India. This is provided IKEAs products to be cheaper. Moreover, customers demand of low price products is higher(prenominal) because the serious current financial issues. 3. Working on sustainability This is the main part of IKEA brand. This statement can be support by 3. 1. RelationshipBuilding relationship and good communication wi th s resultholders, consumers, and co-workers are IKEAs concept. 3. 2. Cooperate social responsibility. IKEA participate in social responsibility this include to be supporter for many charities. 3. 3 Online website. IKEA provides online tips and ideas for sustainable life at home. 3. 4 Environment IKEA uses sustainable resources, renewable energy, reducing water use, and green transportation. Weaknesses 1. IKEA size. The big size of IKEAs business is hard to control quality and standards. For example, quality of product is concern in some regions. . Inconvenience located. The flagship stores are located far away from the urban center center as a consequence, consumers have to travel a long distance to get to the stores. Moreover, they also have to collect a large in convenience packages to take them home. 3. Diverse market. The difference tastes of consumers in different regions. IKEA has many stores in different region. So, they have to adapt the course of products in order to sa tisfy each region consumers. Threats 1. Competitors. The growth of competitors, they can enter the low cost household and furnishers markets.Furthermore, they act like IKEAs style which is the model of low cost products and flat packaging. 1. 1 Offering services. A better services offering from competitors. For instance, they offer home delivery, free inductive reasoning, etc. 1. 2 More products. The larger suppliers such as Tesco and Walmart, they do not sell only home furniture, also offer electronics, groceries, etc. 2. stinting situation. The target group of IKEA is consumers with limited financial income. Therefore, this economic situation will impact and influence IKEAs business due to a softened down consumer spending and income reduces.IKEAs SWOT analysis Strengths Weaknesses 1. Supply chain strategies. 2. IKEAs culture and concept. 3. Environmental perspectives. 1. IKEA size. 2. Inconvenience located. 3. Diverse market. Opportunities Threats 1. Environmentally business. 2. Low price products. 3. Working on sustainability. 1. Competitors. 2. Economic situation. Gap analysis undermentioned 0-3 years Present Issue Aspect ? A weak online support. IKEA neediness of online purchasing options. It forces customers to go to stores. This probably causes losing some profits due to nettle located of some stores.?Do It Yourself The target group of IKEA may overtop convenience installation. IKEA does not provide this point. Sometimes IKEA has overlooked their customers.? Using the new unit load carrier takes longer time than traditional one.? collect to increasing material bunks, DC needs the effective solutions to handle it.? The distribution will increase in IKEA supply chain.? Over stock.? A deprivation of innovation of products? The highly flow of visitors which cause a long queues to check out. This is due to a lack of manpower. ? Developing the online stores to compete with its competitors.Also, increasing online bargain for by a space simulat or.? The IKEA competitors, they offer delivery products and free installation with good ability technicians. IKEA will provide immediate purchase and take home, and offer service but allows customers make their own decisions.? Providing information and noesis of the new unit load carrier is very important to use it efficiently. It is also decreasing a damage and waste of products.? A ample handled can reduce effect at DC by using, for example automatic picking.? Balance supply chain by using supported software and better management.?Hiring new generations staffs which are diverse of personalities. Consequently, they can create some new innovated products.? IKEA uses Beonicstra? c insightvisitor flow system to ensure its checkout never short staffs. The times coke business case studies, viewed 13 Aug 2012, http//businesscasestudies. co. uk/ikea/ Jonsson A. and Mathiasen B. , 2004, Consequences of the implementation of the Loading Ledge, Lund Institute of engineering Mehnaz S. , C ase analysis IKEA, viewed 13 Aug 2012 http//www. scribd. com/doc/59951004/Case-Analysis-IKEA