IKEA Global Strategy

IKEA Global Strategy

Marketing Management
March 23rd, 2015

Prepare an in-depth SWOT analysis for IKEA. Think globally.

Low cost operation
built something of a cult over the years
Suppliers can only sell to IKEA
Customers do not have to wait, can pick up it up themselves
Simple formula means few sales clerks
Economies of scale because of global presence
IKEA is not afraid to innovate and reorganize
Flat management structure, more freedom and greater responsibility for employees
Quality/price advantage
Knockdown furniture

less adaption to American market then needed early on
Store locations

Improve supply chain in America
Different slogan and new advertising approach to adapt to American market

Canada and America are not used to the European way of running a business
Slogan and Moose Symbol not as effective
Long queues and non available stock
In the United States you advertise to stay in business

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?   

IKEA created a competitive advantage early on by telling suppliers that they could only design and product furniture for IKEA stores. So all the furniture is exclusive and only available at the closest IKEA store. Another competitive advantage is their global presence, they created huge economies of scale what means less costs what leads to 30% lower prices compared to their competitors. Because of this they can offer the same quality products but price them significantly lower.

IKEA differentiated itself by choosing for store locations outside the big cities, most retailer would like to be in the middle of the action. I don't know how it is in America, but in Europe going to IKEA is...

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