IKEA SWOT Analysis
Here is a detailed SWOT analysis of IKEA covering strengths, weaknesses, opportunities and threats.
IKEA Strengths
- IKEA is one of the world's leading furniture retailer
- IKEA has approximately 200,000 employees across the world
- It is present in almost 50 countries with more than 400 Ikea stores
- IKEA is known for its easy and ready to assemble furniture across the world. Pre-assembled furniture is also offered by the company
- It also offers services in the smart homes and flats category
- IKEA is also known for its food offerings inside its big stores across the world
- The company manufactures its own furniture which is then assembled by the buyer
- It is now expanding in Asian countries to expand its business e.g. India, Malaysia, Philippines, Mexico etc.
- IKEA website receives more than 2 billion users annually
- The ecommerce portal offers all products, which can be purchased online and delivered home
- IKEA has partnership with various organizations like UNICEF, Bill & Melinda Gates Foundation etc. for helping society during floods, earthquakes and other donations
Above are the strengths in the SWOT Analysis of IKEA. The strengths of IKEA looks at the key internal factors of its business which gives it competitive advantage in the market and strengthens its position.
IKEA Weaknesses
- Many countries are still not accustomed to ready to assemble furniture but rather prefer pre-assembled furniture
- In this competitive segment, it becomes difficult to increase market share consistently
These were the weaknesses in the IKEA SWOT Analysis. The weaknesses of a brand are certain aspects of its business which it can improve.
IKEA Opportunities
- IKEA can launch ability to order furniture online and option to assemble at home
- IKEA can offer an option to either buy ready to assemble or pre-assembled at a cheap fee to open a new revenue option
- Acquisition of furniture & office supplies brands can further strengthen its product portfolio
- The brand can look to explore opportunities in different countries
Above we covered the opportunities in IKEA SWOT Analysis. The opportunities for any brand can include prospects of future growth.
Read more about IKEA
IKEA Threats
- Competition from low cost furniture manufacturers can affect business for IKEA
- Pre-assembled furniture can be cheaper in many countries, which might lead to less margins
- Economic policies & recession can lead to loss of business
The threats in the SWOT Analysis of IKEA are as mentioned above. The threats for any business can be external factors which can negatively impact its business.
Hence this concludes the IKEA SWOT analysis.
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About IKEA
The table below gives the brand overview along with its target market, segmentation, positioning & USP
| IKEA Overview | |
|---|---|
| Parent Company |
Stichting INGKA Foundation |
| Category |
Furniture Retail |
| Sector | |
| Tagline/ Slogan |
World of Inspiration for your home |
| USP |
Ready to assemble affordable furniture and home items |
| IKEA STP | |
| Segmentation |
People looking for home furnishing and items |
| Target Market |
Families Upper Class and Middle Class |
| Positioning |
Ikea offers great ready to assemble furniture with great buying experience |
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