Overcome the Identified Weaknesses and Threats

Performance SWOT analysis IKEA is amongst the biggest retailers of furniture in the world. It has grown rapidly since it was founded in 1943. It sells more than 10,000 furnishing products from well over ccc line of descents in around 40 countries. The comp any has in excess of 600 cardinal auditors to its stores, and it is very successful website attracts in excess of 600 million visitors every year. IKEA is a Scandinavian company famous for furniture from living rooms to childrens bedrooms. The bulk of IKEAs furniture is flat-pack, ready to be assembled by the consumer. Strength IKEA is an environmentally chummy personal line of credit with a keen focus upon sustainability. In years gone(a) by the company had been accused of encouraging wastefulness since it made a very large figs of furniture products at low prices. As part of an integrated public relations campaign IKEA now focuses on sustainability and made it an underpinning principle of its business philosophy. * A demo cratic design stretch an ideal balance between function, quality, design and price. IKEA Cost Consciousness heart and soul that low prices are taken into account when to each one product is intentional from the outset. * IKEA likes satisfied customers.The business manages to score highly in customer delight surveys. Many marketing research companies rank IKEA in their top 10 companies for customer satisfaction. They managed to enhance their brand association with such great results. * IKEA has maintained long-term partnerships with its suppliers. By committing to buying large volumes over a come up of years IKEA can negotiate lower prices. This ensures that the company has access to high-quality materials at reasonable prices. This also benefits the suppliers because they enjoy the greater security of having guaranteed orders. Weaknesses The business is experiencing problems in one or two home markets. For example in the European market of the joined Kingdom, IKEA has recentl y opened more stores which means that the number of visitors is divided by a greater number of retail outlets. So in the past the consumers would travel many miles to visit stores and each store had a large number of visitors, now these consumers have not very increased in number, but are now able to visit a more local anesthetic store. This has reduced the footfall per store and any sales density * The size and scale of its worldwide business. This could make it dangerous to control standards and quality.Some countries where IKEA products are made do not implement the code to control working conditions. This could represent a weak link in IKEAs supply chain, affecting consumer views of IKEAs products. The IWAY code is backed up by teaching and inspectors visiting factories to make sure that suppliers meet its requirements. * The need for low speak to products. This need to be balanced against producing good quality. IKEA also needs to compare itself and its products from co mpetitors. IKEA believes there is no compromise between being able to stretch out good quality products and low prices. Opportunities * IKEA can further capitalize on the green movement and IKEAs customers desire to have less of an impact on the environment to denoting the demand for cheaper and greener products .* IKEA has a number of areas of focus to its work with sustainability, each of which it supports in various ways such as offers tips and ideas online for costumers to create a more sustainable home , developing strong social office by giving to a wide range of different charities and diminution carbon footprint by packing in less material. IKEA is traditionally famous for its diversification strategies. For example in the past they have change food products and opened restaurants in their stores. So the online opportunity of vocation with highly advanced e-commerce technologies is an ideal avenue for IKEA. Obviously this helps the business to get the better of proble ms with out-of-town stores since consumers can stay at home to shop and because request that goods are delivered to their doorstep. Threats * Businesses such as IKEA will struggle against the larger portfolio suppliers such as Tesco in the United Kingdom and Walmart in the United States.For example Tescos sells not only groceries, but TV sets and mobile phones, so it is only a matter of time before the business diversifies into a range of bedroom furniture or kitchens. * Like any global marketing company IKEA has to compensate for the global stinting situation. The business needs people to move through the family life cycle. Empty nesters need to outfit their homes with furniture. So interest rates need to be low equal so that they can afford to borrow money to equip their freshly homes. There needs to be plenty of low-cost housing for them to be able to do this.Do they have job security? The changing economic environment will impact and influence IKEAs furniture business. * IK EA is trading in relatively mature consumer markets, and has entered all plausible free markets countries. The virgin and emerging nations of India and China sometimes make it difficult for IKEA to embed itself as a supplier to new consumers. For example, there are often hostile ownership rules which mean that IKEA might have to take a local business partner. The new partner could take more than 50% of its business and this is not always acceptable to its board.