MKT 464 Case 15 IKEA
Case 15: IKEA’s Global Strategy: Furnishing the World
1. Prepare an in-depth SWOT analysis for IKEA. Think globally.
STRENGTHS:
They are able to offer their furniture at 30% less than their competitors because of low overhead and innovation.
They have 2,300 suppliers in 67 countries.
They offer the world largest largest printed publication, a 360 page catalog for free to 130 million customers in 36 countries in 26 different languages.
They are able to have a large inventory of product on hand due to the ability to stack
They work with exclusive suppliers
Extensive knowledge of their customers
WEAKNESSES:
They only have on average one employee working in the store at a time which makes it hard for customers to sort through more than 10,000 products.
They depend on consumers to have a way to transport the product and want/to be able to put it together by themselves.
Store locations
Advertising
OPPORTUNITIES:
They can have their products made in low-cost nations such as China and India. They can reduce costs and increase their margins.
Expansion into developing countries
More advertising
Technology
Online sales
THREATS:
The bigger suppliers such as Walmart (United States) and Tesco (United Kingdom)
Reduced consumer spending
Less people entering housing market, less need for furnishing
2) There are opportunities for a company to create competitive advantages and to differentiate itself throughout the market mix. Look at IKEA’s marketing mix (product, place/distribution, promotion, and price) and identify where it has created competitive advantage and how it has differentiated itself?
Product: Swedish furniture and retailer (knockdown furniture)
Place/distribution: Switzerland, Canada, U.S.A, Germany
Promotion: They thought lower prices and the selection would be enough with positive word-of-mouth, which proved that was the best advertising in most of the other markets. In the United States, they found that they needed to focus more no media
1. Prepare an in-depth SWOT analysis for IKEA. Think globally.
STRENGTHS:
They are able to offer their furniture at 30% less than their competitors because of low overhead and innovation.
They have 2,300 suppliers in 67 countries.
They offer the world largest largest printed publication, a 360 page catalog for free to 130 million customers in 36 countries in 26 different languages.
They are able to have a large inventory of product on hand due to the ability to stack
They work with exclusive suppliers
Extensive knowledge of their customers
WEAKNESSES:
They only have on average one employee working in the store at a time which makes it hard for customers to sort through more than 10,000 products.
They depend on consumers to have a way to transport the product and want/to be able to put it together by themselves.
Store locations
Advertising
OPPORTUNITIES:
They can have their products made in low-cost nations such as China and India. They can reduce costs and increase their margins.
Expansion into developing countries
More advertising
Technology
Online sales
THREATS:
The bigger suppliers such as Walmart (United States) and Tesco (United Kingdom)
Reduced consumer spending
Less people entering housing market, less need for furnishing
2) There are opportunities for a company to create competitive advantages and to differentiate itself throughout the market mix. Look at IKEA’s marketing mix (product, place/distribution, promotion, and price) and identify where it has created competitive advantage and how it has differentiated itself?
Product: Swedish furniture and retailer (knockdown furniture)
Place/distribution: Switzerland, Canada, U.S.A, Germany
Promotion: They thought lower prices and the selection would be enough with positive word-of-mouth, which proved that was the best advertising in most of the other markets. In the United States, they found that they needed to focus more no media