Ikea Analysis
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IKEA Analysis
IKEA was founded by Ingvar Kamprad in 1943 in a small village of Agunnaryd, Sweden. In 2002, the IKEA Group was a global retail brand with 154 outlets in 22 countries with annual sales of eleven billion Swedish Kronor and serviced 286 million customers a year.
In 1943, IKEA was founded by Ingvar Kamprad and in 1954, the company managed an asset of 15 co-workers and it bid the start of expansion including a number of furnishing for home, stores and companies. The success of the IKEA is explained through the relationship of the three ideas that are involved in the business – the entrepreneur, the business idea, and the company culture
From a small furnishing shop in 1943 to more than 140 stores around the world today, Kamprad at the age of 43 makes him one of the worlds greatest entrepreneurs. The business idea is focused on the concept of “help create a better everyday life”. The idea of offering a wide range of home furnishings that combine good design, good function, and good quality at the low prices made it possible for the people to buy them. Their company culture which is guided by the organizational objectives enables their strategy to make customers keep coming back. The company believes in providing people with quality home furnishing at low
prices, while weakening the competitors market share ( 1999).
PESTLE
Political – As part of the national or global trends and changes, IKEA is just one example of firms that are successful in both domestic and international business (2003). The Swedish furniture retailer has found the Scandinavian style of furniture that was combined with “do-it-youself” flat packaging became popular and set a global ult brand ( 2008).
Economic – The Company, due to the economic changes and trends are adopting different kind of strategies that will take an appeal on their customers and aiming to own the customer loyalty (2003). The strength of IKEA grew from the ownership transfer of the business to the Stitching Ingka. It made the company adopt other furniture style such as dinnerware, lightings and even rugs. Yet, the economic conditions affected the companys market performance and declared a slowdown because of lacking the strategic direction. In order to generate the high performance of the business, IKEA should be careful in analyzing and considering the key issues that involved in any aspects of the business and act accordingly (2006).
Social – The IKEA contributed much in the society as they provide opportunities in people and the employees are entitled in different benefits such as insurance and pensions ( 2005). Moreover, the company promises to provide more high quality furniture that sticks to their original concept – stylish furniture at low prices.
Technological – The IKEA used quality technology and systems to promote the shorter queues, proper scheduling, tracking and trading patterns, and staffing. It aims to be more productive and establish employee preferences. The system made the IKEA in a position to ensure the right