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SWOT ANALYSIS

STRENGTHS
 Flat packaging
 Strong brand recognition
 In-store experience for customers in form of modern day theme parks
 Low-cost
 Strong distribution network
 Supply chain efficiency
 Product strategy council and price matrix
 Substantial efforts to lower cost of production
 Customization according to country
 Self-serve trolleys
 Shops, restaurants and playrooms
WEAKNESSES
 Unassembled furniture does not attract everyone
 Low durability
 Less number of customer service representatives
 Bad press or defamation
 Low or no presence in some countries
OPPORTUNITIES

 Open grocery stores


 Offer interior designing services
 Launch a new line of clothes, shoes and other accessories
 Hire more sales staff to improve customer service experience
 Open more stores in Asian and Eastern Europe
THREATS
 General discount retailers such as Walmart, Office Depot
 Low end stores
 Credit and other payment option available
 High end stores
 Companies trying to imitate IKEA
 Countries such as USA who are less willing to accept change
 Increasing competition
PESTLE ANALYSIS
POLITICAL FACTORS ECONOMIC FACTORS
 Trade restrictions, tariffs and taxation laws  Consumer spending power
 Government permissions and regulations to  Exchange rate fluctuations
open stores in different countries  Inflation rate
 IKEA does not usually venture in countries  Interest rates
with political instability such as Africa,
Pakistan, etc  Tax rates
 Employment ratios
 Cost of factors of productions such as labour,
raw materials, etc.
PESTLE ANALYSIS
SOCIOLOGICAL FACTORS TECHNOLOGICAL FACTORS
 Changing social trends  Online catalogues
 Corporate social responsibility  Customers can check stock availability online
 Customer’s changing demands  E-commerce presence
 Managing supply chain online
 Online customer support
PESTLE ANALYSIS
LEGAL FACTORS ENVIRONMENT FACTORS
 Laws and regulations in different countries  Corporate social responsibility
 Taxes  Sustainable use of materials and energy while
 Import export duties producing furniture

 Every country has different rules for  Try to achieve green targets
conducting business  Have a positive impact on the environment