IKEA CASE Study PDF

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Ikea case study...

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IKEA CASE STUDY Aisha al Suwaidi

[COMPANY NAME] [Company address]

Introduction In this case study I have analyzed the internationally well-known home furnishing shopping place which is known as IKEA, it is the biggest furniture shop in the world. I will present in this case study why IKEA is so successful and how did IKEA achieve this success. A brief history on IKEA, the company. It is a private business that sells international home furnishing products from living room, to bedroom, to kitchen and bathroom products to DIY products and has stores all over the world. The company which started as a small local company in Sweden in the year 1943 has become a famous company in the world today. It was founded by Ingvar Kamprad and it is owned by a Dutch registered foundation controlled by the Kamprad family. Ingvar Kamprad is from a small village with hardworking people with good interesting ideas and can work with limited resources. And he used this method when he began his business in the late 1940s. The name IKEA comes from I – Ingvar, K- Kamprad (which is the founders name) and the E – Elmtaryd and A-Agunnaryd which are the names of the farm the owner grew up in.

This is IKEA’s Vision statement: “To create a better everyday life for the many people” IKEA’s Mission statement is “To offer a wide range of well designed, functional home furnishing products at prices so low that many people as possible will be able to afford them.” IKEA’s marketing positioning statement is “Your partner in better living. We do our part, you do yours. Together we save money.

Objectives of IKEA:    

To produce cheap and affordable furniture and home products for the customers Better life for those who cannot afford expensive products Make sure customers find what they are looking for Low prices

IKEA SWOT ANALYSIS Strength       

powerful and famous brand image a lot of products for all kinds of use Beautiful Swedish designs Cheap and affordable Easy to set up the furniture One stop shopping for all your home furnishing Environmentally friendly products

Weakness      

Opportunities      

In places where they have no IKEA store yet Educate people about the benefits of IKEA products by advertisement Open different types of stores(big, small, cheap and expensive) Increase online business Open more stores around the world Try to reach out to university students and young married couples.

Some people may not like the DIY setting up of the furniture idea Some store locations are new in some countries The store is too big in the layout and some customers want to shop fast Not everyone may like Swedish designs Advertising does not attract a lot of people Furniture is not always lasting

Threats   

Other similar stores like Walmart and local carpenters Global economic crisis Maybe people have lost interest in IKEA products, they are bored.

The strengths of Ikea is that the Ikea brand name is well known worldwide. Whenever people want to move, they think of Ikea first. Ikea’s shop has a lot of products for all kinds of household needs. The designs are beautiful from Sweden and very stylish and modern. Plus, they are cheap and affordable for most people. Their furniture is DIY style in many cases but are easy to set up. They also have a very good online shop to buy their furniture. And they make very environmentally friendly products that do not harm our environment. In Ikea’s weaknesses, people may not like the idea of a DIY set up of their furniture because it is too troublesome. In a lot countries, Ikea is a new store for them and they may not know it so well

or maybe too far away for them. Often, the Ikea store is too big and it is very tiring for people to travel all the way to the store and shop for their furniture in a big place that can take hours and hours. And not everyone will like Swedish designs as people have different tastes. Often, the advertising may not also attract a lot of people. The furniture from IKEA is always not lasting. It is always getting broken or damaged quite easily. IKEA’s Opportunities for development are in business opportunities which can be quite big for Ikea because there are still many places without an Ikea store. People need to be educated more about the quick an easily set up furniture by Ikea. They should also open many types of Ikea store so that customers can go to the right place that they want to go, like for example, a small place, medium sized place or a giant store. And they can add more variety of products from cheap to expensive so that customers can choose for themselves. They should open more Ikea stores around the world and make Ikea more well-known everywhere. Ikea should also target young couples and university students with their catalog to attract them to use Ikea products. Threats are few, but very serious if Ikea does not watch its business performance. Stores like Walmart is also famous for cheap and affordable furniture and it is American, another popular country with nice furniture. Local carpenters are trained to make lasting furniture from local wood and products that last longer and suitable for local designs. The global economic crisis can have an effect on sales. If the world economy improves, people will spend more. Many people, generally have lost interest in Ikea products also. They are bored from the same models of furniture. Ikea can improve by changing their designs and adding more interesting catalogs and advertisement.

Conclusion. To conclude, IKEA has a good product to sell. IKEA’s products are wide ranged. They are available to the poor and the rich. They have items for all the needs of the market. Their products are priced low and they are stylish and modern. IKEA also designs its own furniture, so it is always different and beautiful. With online promotion of IKEA products there is a lot of opportunity for online shopping and advertising. IKEA is successful because they corporate with other suppliers from all over the world and have a very good supply chain system to deliver to the customers what they need on time. The IKEA Company has a world class image and everyone knows the company and they can always open new stores at the new markets like the Arab world. For problems faced by IKEA, they can always try to understand the customer demands and do their best to meet their requirements. For example, they can work with local suppliers and furniture designers and carpenters with more localized furniture designs so that they can grow their business and expand their customer base....