Understandable SWOT Analysis of IKEA International Group

IKEA is among the best furniture retail companies in the world. They can provide furniture, appliances, home accessories, and more. Aside from that, you can learn more about IKEA if you try to read the post right now. Also, the post will offer a detailed explanation of the important factors of the company. You can learn its strengths and weaknesses that play a big role in the business. Plus, you will discover the potential opportunities and threats that will be a key factor for the success of the company. With all of that, you may read the article to get an idea about the IKEA SWOT analysis.

• Part 1. What is IKEA
• Part 2. IKEA SWOT Analysis
• Part 3. Excellent Tool for IKEA SWOT Analysis
• Part 4. FAQs about IKEA SWOT Analysis

Part 1. What is Ikea

Part 2. IKEA SWOT Analysis

A SWOT analysis is a business tool for evaluating the SWOT of IKEA. The SWOT is about a company's strengths, weaknesses, opportunities, and threats. With the help of the analysis tool, the company can see its business's possible success or failure. In that case, let us show you the SWOT analysis of IKEA using the diagram below.

Get a detailed SWOT analysis of IKEA.

Strengths

Customer Knowledge

◆ One of the competitive advantages of IKEA is its full knowledge of the customer. This strength allows the company to provide various products and services the consumers want. With this, the company can attract more consumers compared to other businesses. The company’s designers can instantly introduce new products with good designs that look great in customers' eyes. Also, IKEA can offer an amazing and positive shopping experience. Having extensive knowledge about its consumers is one of the best ways to convince more customers and offer various products and services.

Market Presence and Brand Reputation

◆ IKEA is among the most valuable furniture retailer brands worldwide. It has more than 300 stores in 38 countries and is involved in the major world markets. Every year, more than 600 million consumers visit IKEA stores. This number of stores can make the company popular in the industry and worldwide. Also, since they can provide high-quality products, it creates a good consumer reputation.

Wide Product Range

◆ The company can provide a comprehensive range of products. It caters to various customer segments, budgets, and tastes. These great product offerings can help the company get more consumers and meet their needs.

Weaknesses

Involvement in Multiple Scandals

◆ One of the company's weaknesses is its scandals. IKEA had its fair share of bad press about various delicate issues. One example is its environmental impact on the company. IKEA is considered responsible for 1% of global wood consumption every year. With this issue, it may damage the reputation of the company. Also, some consumers may purchase furniture and other products for other businesses.

Failure for Expansion

◆ Another weakness of the company is its incapability to expand its business to other countries. If the company can’t spread its business, it can’t get more consumers. Also, the company lacks a marketing strategy, making them unknown elsewhere.

Negative Criticism

◆ We all know that IKEA can produce various products and services for its consumers. But, some people criticize the company about the products’ quality. Some people say that the company's products are not great in quality. With this, many people doubt purchasing products from IKEA. The company needs to create a solution to this issue to clean its image from other people.

Opportunities

International Expansion

◆ IKEA has more than 300 stores in various countries. But, it is not enough to make it popular in the retail industry. In that case, one of the best opportunities for IKEA is to expand its business to other countries. It includes establishing physical stores, improving its digital platform, and more. If the company can expand its business, it will be possible to reach more people who can purchase its products and services.

Marketing and Advertising Strategies

◆ Investing in advertising and marketing strategies is best if the company wants to promote its business. IKEA can use various social media platforms when promoting its products and services. This way, the company can introduce its business to other people digitally. Another marketing strategy the company can use is to partner with other businesses and influencers. The strategy can help IKEA to share its offering with other markets.

Collaboration with Designers

◆ With the help of designers, the company can accept customized designs from its customers. With this, many consumers will come to the store and have their personalized furniture. Also, with the help of designers and artists, they can offer more products with unique appearances that are hard to imitate.

Threats

Changes in Raw Material Prices

◆ The company relies on raw materials like textiles, wood, and metals to manufacture products. Fluctuations in prices may affect the budget of the company. Also, the company can increase the price of its products and services.

Competitors

◆ Another threat to the business of IKEA is its competitors. Competition can bring intense pressure to the company. Also, competitors can offer the same products at affordable prices. With this, it may affect the financial performance of the business.

Part 3. Excellent Tool for IKEA SWOT Analysis

As you can see above, it is essential to determine various factors that may help the business develop. Also, creating a SWOT analysis to visually illustrate the company’s performance is better. In that case, we recommend using MindOnMap. After you access the tool, you can instantly make the IKEA SWOT analysis. After you open the main interface from the Flowchart option, you can already use all the elements. Shapes, text, designs, themes, lines, and colors are available in the tool. With this, the tool will ensure that you may get your perfect SWOT analysis. MindOnMap lets you keep your SWOT analysis on your account and computer. You can save it in PNG, JPG, DOC, PDF, and more formats. So, use the tool to create an outstanding SWOT analysis of IKEA.

Part 4. FAQs about IKEA SWOT Analysis