Group Project
The analysis of IT opportunities
Analyze IKEA by Porter’s models
Rivalry among existing firms is very intense from the global market, but IKEA still is the biggest retail of discount furniture. The forceful competitors of IKEA have two companies in the discount furniture market, which are Ashley Furniture Home Stores and Home Depot. Secondly, some players is also their competitor, such as Euromarket Designs Inc., Galiform plc, Wal-Mart Stores Inc., Argos and others。Lastly, IKEA met some local players in the different country. For example, in China, the competitive ability of IKEA is weaker than local brands in some small cities.
Then, the threat of new entrants into the industry is lower, because of IKEA’s brand image. The current IKEA business status and economic condition is strong that could not easily overcome it for the rivals. Moreover, the brand awareness of new competitors is low, and if they want to enhance the market share in the global market, finance background should be abundant. However, if we just analyzed a single market, such as the Chinese market, some multinational companies enter or invest the Chinese furniture industry, so they would spend lower cost to get the higher profit, which will make them more competitiveness in the finance that would influence to the development of IKEA.
The bargaining power of IKEA consumers is strong. First of all, it is the numerous furniture brands. Secondly, the current furniture market reaches the balance of supply and demand. Thirdly, the furniture is durable consumer goods and consumption amount is higher, so consumers will compare some brands when they buy. Finally, most consumers do not understand the quality of product, so the price decided to purchase behavior that consumers' bargaining power is very strong in the furniture industry.
The threat of substitute products and services is low. From the perspective of the substitute products, the substitute products of the furniture are not much. However, for
Analyze IKEA by Porter’s models
Rivalry among existing firms is very intense from the global market, but IKEA still is the biggest retail of discount furniture. The forceful competitors of IKEA have two companies in the discount furniture market, which are Ashley Furniture Home Stores and Home Depot. Secondly, some players is also their competitor, such as Euromarket Designs Inc., Galiform plc, Wal-Mart Stores Inc., Argos and others。Lastly, IKEA met some local players in the different country. For example, in China, the competitive ability of IKEA is weaker than local brands in some small cities.
Then, the threat of new entrants into the industry is lower, because of IKEA’s brand image. The current IKEA business status and economic condition is strong that could not easily overcome it for the rivals. Moreover, the brand awareness of new competitors is low, and if they want to enhance the market share in the global market, finance background should be abundant. However, if we just analyzed a single market, such as the Chinese market, some multinational companies enter or invest the Chinese furniture industry, so they would spend lower cost to get the higher profit, which will make them more competitiveness in the finance that would influence to the development of IKEA.
The bargaining power of IKEA consumers is strong. First of all, it is the numerous furniture brands. Secondly, the current furniture market reaches the balance of supply and demand. Thirdly, the furniture is durable consumer goods and consumption amount is higher, so consumers will compare some brands when they buy. Finally, most consumers do not understand the quality of product, so the price decided to purchase behavior that consumers' bargaining power is very strong in the furniture industry.
The threat of substitute products and services is low. From the perspective of the substitute products, the substitute products of the furniture are not much. However, for