Ikea SWOT analysis
PESTEL analysis
Political factor
Generally. The political situation is stable and the political parties respect the agreements between the MNCs and the government. This will help IKEA ensure the healthy business environment.
However, In Poland after the fall of communist government make the political situation changed drastically. That has bad impact to relationship between the supplier and IKEA such as the supplier tried to raise price.
Economic factors
The economic crisis is the good economic factor for IKEA when the US dollar the importing cost of raw materials from Sweden was getting more expensive.
Social factors
The culture differences of Europe, Scandinavia and the US may play an vital role on the business strategy of IKEA such as the Scandinavians focus on the design and the perfection of the products while the Americans concerns about the functional ability of product. Furniture may last for generations. This practice is more common in Sweden. In USA this culture has been changing recently.
Technological Factors
Technological factors are about the R&D activity, automation, technology incentives and rate of technological change so IKEA developed and provided some of unique features in the future industry like self-assembly. This way can help IKEA to ship its product more convenient.
In addition, technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. ( Dahman J 2011 )
SWOT of IKEA Company
IKEA SWOT analysis 2013
Strengths
Weaknesses
1. Customer knowledge
2. Constantly using innovations to drive costs down
3. Supply chain integration
4. Brand reputation and market presence
5. Diversified product portfolio
1. Negative publicity
2. Decreasing quality
3. Standard products
Opportunities
Threats
1. Further expansion into developing economies
2. Growing online sales
3. Expansion to growing grocery
Political factor
Generally. The political situation is stable and the political parties respect the agreements between the MNCs and the government. This will help IKEA ensure the healthy business environment.
However, In Poland after the fall of communist government make the political situation changed drastically. That has bad impact to relationship between the supplier and IKEA such as the supplier tried to raise price.
Economic factors
The economic crisis is the good economic factor for IKEA when the US dollar the importing cost of raw materials from Sweden was getting more expensive.
Social factors
The culture differences of Europe, Scandinavia and the US may play an vital role on the business strategy of IKEA such as the Scandinavians focus on the design and the perfection of the products while the Americans concerns about the functional ability of product. Furniture may last for generations. This practice is more common in Sweden. In USA this culture has been changing recently.
Technological Factors
Technological factors are about the R&D activity, automation, technology incentives and rate of technological change so IKEA developed and provided some of unique features in the future industry like self-assembly. This way can help IKEA to ship its product more convenient.
In addition, technological factors can lower barriers to entry, reduce minimum efficient production levels, and influence outsourcing decisions. ( Dahman J 2011 )
SWOT of IKEA Company
IKEA SWOT analysis 2013
Strengths
Weaknesses
1. Customer knowledge
2. Constantly using innovations to drive costs down
3. Supply chain integration
4. Brand reputation and market presence
5. Diversified product portfolio
1. Negative publicity
2. Decreasing quality
3. Standard products
Opportunities
Threats
1. Further expansion into developing economies
2. Growing online sales
3. Expansion to growing grocery