Ikea Swot Analysis

KStrengths 1. show drawing string strategies. 1. 1. Packaging concept. The categoric packaging is known of its IKEA which is very pitchive for transporting products beca intake more products can be shipped at the same time. Consequently, transportation cost will be cheaper. Furthermore, the flat packaging reduces both(prenominal) materials usage. However, it has rough weak aras to work on such as protection and unitization. 1. 2. New unit load modsboy. IKEA has formd bare-ass carrier which is called Loading ledge, is a flexible unit load carrier.It can save capital as a part of total logistic solution and also key the transport be more volume. The loading ledge has been used for two age within IKEAs supply chain and the result has satisfied for IKEA because it can reduce damages in best processes. 1. 3. Direct delivery. IKEAs products are delivered at present from supplier to different stores because this is the cheapest way for distribution. Furthermore, it can decr ease the transportation distance and abjecter vitamin C release. In term of process, the goods do not transport to distribution center because it can be directly to stores.This process is very efficiency and special one. So, they can save the cost of one time transport. ensure 1 Direct delivery distribution. 1. 4 Sustainable relationships. IKEA focuses on long-term supplier relationship. IKEA usually demoralise a large volume for a plenty of years. As a result, they can negotiate at low price. Moreover, the suppliers also gain advantages because their products are guaranteed ordering. 2. IKEAs culture and concept. 2. 1. Powerful worldwide company. IKEA has strong world(a) brand and concept which is guaranteed good quality at lower price. . 2. IKEAs vision IKEA notes their goal that to create a better everyday life for many people. 3. Environmental perspectives. 3. 1. Green process. IKEA uses materials that are environmentally friendly. For example, renewable materials, recycling waste products, etc. 3. 2. New technology. Using new technology to reduce the aggregate of raw material needed. 3. 3 Effective transportation. IKEA transports their products by use rail and sea as untold as possible to reduce the impact on environment. Opportunities 1. Environmentally occupation.IKEA believes that environmentally focused business stick out will results in good return even in a price sensitive commercialise. Nowadays, consumers demand in green products is continue to increase. 2. Low price products. IKEA depends on the low-cost manufacturing countries as china and India. This is provided IKEAs products to be cheaper. Moreover, customers demand of low price products is higher because the serious topical financial issues. 3. Working on sustainability This is the main part of IKEA brand. This statement can be supported by 3. 1. RelationshipBuilding relationship and good communication with stakeholders, consumers, and co-workers are IKEAs concept. 3. 2. Coopera te kindly responsibility. IKEA participate in social responsibility this include to be supporter for many charities. 3. 3 Online website. IKEA provides online tips and ideas for sustainable life at phratry. 3. 4 Environment IKEA uses sustainable resources, renewable energy, reducing water use, and green transportation. Weaknesses 1. IKEA size. The big size of IKEAs business is hard to control quality and standards. For example, quality of product is concern in some regions. . In contraption located. The flagship stores are located far away from the city center as a consequence, consumers have to travel a long distance to get to the stores. Moreover, they also have to collect a large in convenience packages to take them home. 3. different market. The difference tastes of consumers in different regions. IKEA has many stores in different region. So, they have to align the style of products in order to satisfy each region consumers. Threats 1. Competitors. The growth of competitors, they can enter the low cost household and furnishers markets.Furthermore, they act like IKEAs style which is the model of low cost products and flat packaging. 1. 1 Offering services. A better services offering from competitors. For instance, they offer home delivery, free installation, etc. 1. 2 More products. The larger suppliers such as Tesco and Walmart, they do not sell only home furniture, also offer electronics, groceries, etc. 2. Economic attitude. The target group of IKEA is consumers with limited financial income. Therefore, this economic situation will impact and influence IKEAs business due to a slow down consumer disbursal and income reduces.IKEAs SWOT analysis Strengths Weaknesses 1. Supply chain strategies. 2. IKEAs culture and concept. 3. Environmental perspectives. 1. IKEA size. 2. Inconvenience located. 3. Diverse market. Opportunities Threats 1. Environmentally business. 2. Low price products. 3. Working on sustainability. 1. Competitors. 2. Economic situati on. Gap analysis Next 0-3 years Present Issue Aspect ? A weak online support. IKEA lack of online purchasing options. It forces customers to go to stores. This probably causes losing some profits due to inconvenience located of some stores.?Do It Yourself The target group of IKEA may ask convenience installation. IKEA does not provide this point. Sometimes IKEA has overlooked their customers.? Using the new unit load carrier takes longer time than traditional one.? Due to increasing material flows, DC needs the effective solutions to cross it.? The distribution will increase in IKEA supply chain.? Over stock.? A lack of innovation of products? The super flow of visitors which cause a long queues to check out. This is due to a lack of manpower. ? Developing the online stores to manage with its competitors.Also, increasing online purchase by a space simulator.? The IKEA competitors, they offer delivery products and free installation with good ability technicians. IKEA will pro vide immediate purchase and take home, and offer service but allows customers make their own decisions.? Providing information and knowledge of the new unit load carrier is very important to use it efficiently. It is also decreasing a damage and waste of products.? A great handled can reduce effect at DC by using, for example automatic picking.? Balance supply chain by using supported software and better management.?Hiring new generations staffs which are diverse of personalities. Consequently, they can create some new innovated products.? IKEA uses Beonicstra? c insightvisitor flow system to ensure its checkout never neat staffs. The times 100 business case studies, viewed 13 Aug 2012, http//businesscasestudies. co. uk/ikea/ Jonsson A. and Mathiasen B. , 2004, Consequences of the implementation of the Loading Ledge, Lund Institute of Technology Mehnaz S. , shimmy analysis IKEA, viewed 13 Aug 2012 http//www. scribd. com/doc/59951004/Case-Analysis-IKEA