IKEA Case analysis; Hill & Jones
IKEA
CASE ANALYSIS
Table of Contents
Executive Summary 3
Introduction
Company History
Objectives
External Environment Remote Environment Industry Environment Operating Environment Threats Opportunities
Internal Environment Tangible Resources Intangible Resources Capabilities Core Competencies Strengths Weaknesses
SWOT Matrix
Strategies
Conclusion
Bibliography
Executive Summary
This analysis detailed the history of IKEA Company since its establishment by Ingvar Kamprad in 1943 to the world wide expansion and future it faced in 2008.
IKEA was striving for future expansion and growth in sales, but was faced with what to do in order to achieve these. With poor previous attempts at global expansion, lack of investigation into future countries in which IKEA wanted to expand to, and no diversity on its board of directors; IKEA would have to find a way to achieve company success and accomplish these goals.
IKEA had a number of threats, opportunities, strengths, and weaknesses to consider. The three threats IKEA faced were: 1) competition, 2) changing government laws and regulations, and 3) economic and social changes. The opportunities for IKEA were: 1) global expansion, 2) product demand, 3) low switching costs, 4) market demographics, 5) external relationships, and 6) a successful global business model. The strengths for IKEA were: 1) marketing and branding, 2) outsourcing and supplier management, 3) mass customization of products, and 4) research and development. IKEA’s weaknesses were identified as: 1) company organization and 2) the failure to research geographic markets before expansion. Using this SWOT analysis, we recommended that IKEA develop strategies for expanding globally by opening new stores in Beijing, China; Wuhan, China; New Delhi, India; and Jakarta, Indonesia, and also thoroughly investigate the geographic markets before this expansion. They also need to
CASE ANALYSIS
Table of Contents
Executive Summary 3
Introduction
Company History
Objectives
External Environment Remote Environment Industry Environment Operating Environment Threats Opportunities
Internal Environment Tangible Resources Intangible Resources Capabilities Core Competencies Strengths Weaknesses
SWOT Matrix
Strategies
Conclusion
Bibliography
Executive Summary
This analysis detailed the history of IKEA Company since its establishment by Ingvar Kamprad in 1943 to the world wide expansion and future it faced in 2008.
IKEA was striving for future expansion and growth in sales, but was faced with what to do in order to achieve these. With poor previous attempts at global expansion, lack of investigation into future countries in which IKEA wanted to expand to, and no diversity on its board of directors; IKEA would have to find a way to achieve company success and accomplish these goals.
IKEA had a number of threats, opportunities, strengths, and weaknesses to consider. The three threats IKEA faced were: 1) competition, 2) changing government laws and regulations, and 3) economic and social changes. The opportunities for IKEA were: 1) global expansion, 2) product demand, 3) low switching costs, 4) market demographics, 5) external relationships, and 6) a successful global business model. The strengths for IKEA were: 1) marketing and branding, 2) outsourcing and supplier management, 3) mass customization of products, and 4) research and development. IKEA’s weaknesses were identified as: 1) company organization and 2) the failure to research geographic markets before expansion. Using this SWOT analysis, we recommended that IKEA develop strategies for expanding globally by opening new stores in Beijing, China; Wuhan, China; New Delhi, India; and Jakarta, Indonesia, and also thoroughly investigate the geographic markets before this expansion. They also need to
Bibliography: Hill, Charles W.L., and Gareth R. Jones. Strategic: Management An Integrated Approach. 9th ed. Mason, OH, 2010. Print.