H.K.E.
Society’s
SRI S.M.V COLLEGE OF ENGINEERING
DEPARTMENT OF MANAGEMENT STUDIES
Name Rakesh
reddy
MBA
TOPIC:- IKEA
INTRODUCTION
Founded in 1943 by Ingvar Kamprad in
Sweden
Started as a small mail-order company selling
furniture and household goods
Introduced the flat-pack concept in the 1950s,
which revolutionized the furniture industry
Opened its first
store in Älmhult, Sweden, in 1958
IKEA has
since expanded to become a global retailer
with over 450 stores in over 50 countries
SWOT ANALSIS
STRENGTH
Strong BrandRecognition & Reputation: IKEA is a
household name synonymous with affordability,
Scandinavian design, and functionality.
CostLeadership: IKEA excels at cost-efficiency through
economies of scale, optimized supply chains, and flat-
pack furniture.
Democratic Design: IKEA offers stylish and well-
designed furniture at accessible prices, making good
design available to everyone.
weaknesses
Complex Assembly: While flat-pack furniture offers
cost advantages, it can be challenging to assemble
for some customers.
Limited Customization: IKEA's focus on efficiency
and standardization limits the ability for extensive
customization.
Out-of-Town Locations: Many IKEA stores are situated
outside city centers, requiring extra effort for
customers to reach them.
Product Quality Concerns: There have been concerns
about the durability and quality of some IKEA
furniture.
OPPORTUNITIES
E-commerce Expansion: IKEA can leverage e-
commerce to reach new customers and offer
convenient online shopping options.
Emerging Markets: Growing economies in
Asia and Africa present exciting opportunities
for IKEA to expand its reach.
Sustainability Initiatives: Embracing
sustainable materials, production methods,
and responsible sourcing can enhance IKEA's
brand image.
THREATS
Competition: Rivals offering similar
concepts or competing on price can
put pressure on IKEA's market share.
Economic
Downturns: Consumers might cut
back on discretionary spending like
furniture during economic hardship.
Shifting Consumer
Preferences: Changing tastes or a
move towards more customized
MARKET STRATEGIES
Focus on affordability and value: IKEA will likely
continue to prioritize keeping prices low while
offering good quality.
Enhancing the shopping experience:
Streamlining the in-store experience and
offering more assembly services could attract a
wider audience.
Digital Transformation: Investing in e-
commerce and offering online furniture
planning tools can cater to the digital-savvy
customer.
