Competitor analysis Essay

IKEA is an internation completelyy known home furnishing retailer. It has grown fast since it was founded in 1943. Today it is the worlds largest piece of piece of furniture retailer, recognized for its S dopedinavian style and the petty(a) setd high note furniture items. Most of IKEAS furniture is flat-pack. This al pocket-sizeds a reduction in costs and packaging. IKEA has around 9500 products, including home furniture and accessories. The products are available in all IKEA stores and customers can order them as well online through IKEAS website. There are about one hundred forty IKEA stores in the world in 30 diametric countries. IKEA stores include restaurants and cafs dowery typical Swedish fodder. They as well as stupefy depresseder-ranking food shops considering Swedish groceries, everything from the famous meatballs to jam.2. Analysis of current situation certain missionIKEAS mission is to oblation a wide get down of home furnishing items of good design and f unction, excellent quality and durability, at costs so low that the majority of people can afford to buy them. They suffer to attract customers who are looking for quality products at reasonable termss, however who are leading to assemble their furniture themselves and participate in a self-service culture. The typical target customers are young families with a low to middle low income. GoalsTheir recent goals is that all untested stores will be built to a certified green building exemplification and sell more organic goods. And to encourage their customers to travel with public transport to trim their store. They want to be more recognized as an eco-friendly business.StrategiesThe basis of IKEAS strategy is a mixture of innovate their own modular designs, grass produced components and a dedicated supplier network all geared towards serving price conscious customers while still maintaining ato high standard of goods and workmanship. They design their own furniture and its a self-service, that is a openhanded part of their strategy. They also have a lot of facilities to brook. For instance they offer paper and pencils, computers so you can look certain things up, they have a playground for children and a restaurant with delicious and payable food. Since IKEA was founded it always had revive for people and the surround. The IKEA vision is to create a better everyday aliveness for many people. IKEAS concern for people and the environment encourages it to posit better use of both raw materials and energy. This keeps costs down and helps the caller-out to reach its green targets and have an overall positive degree impact on the environment.43. Internal environment-StrengthsStrengths could include a companys specialist marketing expertise or its location. They are any boldness of the business that adds value to its product or service. IKEAS strengths include Its a world(a) brand which attracts a lot of consumer groups, they also offer the same qual ity and grade in their stores. its vision to create a better everyday life for many people A sinewy concept based on offering a wide range of well designed, functional product at low prices. A positive Human Resource Management approach towards its staff, which leads to a positive status among the staff and increased performance for the company. This makes the staff happy with their jobs. The staff has an qualified treatment, no matter which background they have. This makes them adapt to the consumers in different countries en within different cultures. They adapt quickly to change.They use the latest engine room such as IKEA IT (information technology), this provides IKEA with all its system requirements such as commons business solutions, architecture, infrastructure, service and support. Such as KPI (Key performance indicators) it helps IKEA to measure the come on of its vision and long-term goals by setting targets and monitoring progress towards it. environmentally frien dly policy.Volume commitments IKEA believes in creating long-term partnerships with its suppliers in order to execute this. By committing to buying large volumes over a number of historic period IKEA can negotiate lower prices. This also benefits the suppliers because they enjoy the greater surety of having guaranteed orders. Economies of scale for instance, bulk buying at cheaper unit costs. Good marketing.WeaknessesIKEA has to have a go at it its weaknesses in order to improve and manage them. This can play a key role in helping it to set objectives and develop new strategies. The size and scale of its world wide business. This could makes it strong to control all the stores, the staff and the standards. The need for low cost products. This of necessity to be equilibrate against producing good quality. That is hard to do, sometimes they do have low quality. IKEA also needs to be different from competitors. IKEA needs to keep good chat with its consumers and other stakeholde rs about its environmental activities. The scale of the business makes this a difficult task.54. outdoor(a) environment OpportunitiesA business uses its strengths to take proceeds of the opportunities. a growing drive for greener productsa growing solicit for low priced products.Low economy makes low priced furniture even more appealing.demand for reduced water employment and lower carbon footprints Threats Porters 5 forces model6 Threat of buyers growing bargaining spring there is a little role because of the existing low price options. IKEA ensure that their customers in all aspects will be satisfied for qualityservice they provide Focused their marketing approach on demands and needs of the buyer. IKEA uses their corporate responsibility as a good public plan to their customers. IKEA family card as a membership.Threat of suppliers growing bargaining power Because of the low-pricing, IKEAs profit margin also affects the prices in raw materials than by prices in labour . IKEA has a wide network of 1300 suppliers. They carefully select the manufacturing business of its products. The company has own production factories and designers which makes it less dependent on others. bargain power of supplier could be threat for the profit of the company.Threat of tack products or services There is no specific product that can be a substitute for the furniture but IKEA at least, have to keep up with the latest trends, to avoid becoming out of style. Problems face due to distribution channels.Rivalry among existing firms The IKEAs furniture competitors offers different styles and functionality IKEA is the most successful in delivering the complete package for the customers that reflect in weak rivalries. There will always be substitutes for furnitures but IKEA competes with price and there isnt competitors in the same price range. Threat of new Entrants IKEA stores do not reach many small towns and this is an opportunity for the new competitors to move into small and midsize cities with smaller stores and less selection. exclusively not easier in city because new entrants have to establish a vast supply chain and create an unique brand name. The furniture market is already highly competitive, the risk of new entrants is not extremely high.75. Conclusion.IKEA is a well-known global brand with hundreds of stores across the world.In order to improve performance, it must assess its external and competitive environment. This will reveal the key opportunities it can take advantage of and the threats it must deal with. IKEA responds to both internal and external issues in a proactive and high-voltage manner by using its strengths and reducing its weaknesses. Through this, IKEA is able to nonplus the strong growth it needs to retain a strong identity operator in the market.6. SWOT-analysisInternal purlieuSWOT AnalysisExternal EnvironmentStrengthOpportunitiesAdapt quicklyWorldwide brand Low price high quality Positive Human Resour ce Management environmentally friendly policy Good marketing A growing demand for greener products A growing demand for low priced products.Low economy makes low priced furniture even more appealing. Demand for reduced water usage and lower carbon footprints WeaknessesThreats Low communication of environmental activities The size of their worldwide business The need for low cost products The IKEAs furniture competitors forward-looking trends IKEA family card Bargaining power of supplier8ForewordThis sound judgment is about the company IKEA. I will discuss several issues including an cosmos of the company, an analysis of the current situation within the internal (Strengths and Weaknesses) and external environment (Opportunities and threats) . The treats are described in Porters 5 forces model. The answers of my question can be found in the conclusion and SWOT analysis.3IndexPage numbers1. Introduction42. Analysis of current situation43. Internal environment54. External Environme nt6,75. Conclusion86. Swot-Analyses87. Bibliography927. BibliographyContinuing Case by Alan Hogarth http//businesscasestudies.co.uk/swot-analysis-and-sustainable-business-planning/swot-analysis.htmlaxzz2eJ2NvcnR http//www.slideshare.net/FenellaAndrade/ikea-9167089 http//www.strategicmanagementinsight.com/swot-analyses/swot-analysis.html http//research-methodology.net/porters-five-forces-analysis/9IKEA