Preview

Ikea pestle

Powerful Essays
Open Document
Open Document
3360 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ikea pestle
SWOT, PESTEL, Porter’s 5 Forces and Value Chain analyses of IKEA (2012, 2700 words)

This paper looks at IKEA, one of the global leading furniture retailers and a very successful brand. It examines the environment in which IKEA operates using SWOT,
PESTEL, Porter’s 5 Forces and Value chain analyses to inspect the attractiveness and competitiveness of the industry. Conclusions are also made.

IKEA, SWOT; PESTEL; Porter’s Five Forces; Value chain analysis

1

1. Introduction and Company overview............................................................... 3 2. PESTEL analysis................................................................................................ 3 2.1. Political.......................................................................................................................................................3 2.2. Economical................................................................................................................................................4 2.3. Social............................................................................................................................................................5 2.4. Technological...........................................................................................................................................5 2.5. Environmental.........................................................................................................................................5 2.6.


References: Andersen, M. Skjoett-Larsen, T. (2009) "Corporate social responsibility in global supply chains", Supply Chain Management: An International Journal, Vol pp.75 - 86 BBC News (2012) UK inflation rate rises to 2.7% in October [online] Available at: http://www.bbc.co.uk/news/business-20310102 [accessed on 9 December 2012] Forbes.com (2012) 10 ½ Ways to Take Advantage of "Social SEO" [online] IKEA corporate webpage (2012), IKEA corporate webpage available at: www.ikeagroup.ikea.com [accessed on 9 December 2012] Interview by Gareth Bell, (2012),"Interview with Anders Dahlvig", Strategic legislation.gov.uk (2012) Sales of Goods Act 1979 [online] Available at: http://www.legislation.gov.uk/ukpga/1979/54 [accessed on 9 December 2012] Mintel Oxygen (2012) Furniture Retailing - UK - August 2012, Mintel Oxygen Mintel Oxygen (2010) Furniture Retailing UK- August 2010, Mintel Oxygen PwC (2012) Corporate income tax- a global analysis Gaukler, G. (2010) "Preventing avoidable stock outs: the impact of item-level RFID in retail", Journal of Business & Industrial Marketing, Vol Hu, H., and Jasper, C.R. (2006) Social cues in the store environment and their impact on store image Johansson, U., Hansson, C., Hansson, F. and Thelander, A ̊. (2008), “Newspapers – image formation agents for retailers?”, in Gro ̈ppel-Klein, A The IKEA concept (2012), The IKEA concept [online] Available at http://franchisor.ikea.com/concept.html [accessed on 9 December 2012] Inter IKEA Systems B.V. (2012) Facts and figures [online] Available at http://franchisor.ikea.com/facts.html [accessed on 9 December 2012] Kourdoumpalou, S. and Karagiorgos, T. (2012) "Extent of corporate tax evasion when taxable earnings and accounting earnings coincide", Managerial Auditing Journal, Vol. 27 Iss: 3, pp.228 – 250 Raab, G, (2010), The Psychology of Marketing: Cross-Cultural Perspectives, Gower The Blaze (2012b) IKEA airbrushes women out of so the version of catalogue-see the incredible pictures [online] Available at http://www.theblaze.com/stories/ikea-airbrushes-women-out-of-saudi-version-ofcatalog-see-the-comparisons/ [accessed on 9 December 2012] Tarnovskaya (2012), Activating Stakeholders: An Approach by MNCs in
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Best Essays

    Crowesl M3 A2
    • 2324 Words
    • 7 Pages

    Crowesl M3 A2

    IKEA is a Swedish company that dominates in the furniture industry and is very successful with their sales and marketing strategies. They are also very conscience about the external environment. They have been in the foreign market since 1973, they currently have stores in over 37 countries and are continuing to grow (most recently Asia). By following the traditional pattern of globalization, first operating in countries with similar cultures and then expanding to the foreign market, they were able to have great international success (Burt, Johansson & Thelander, 2011). We will discuss in detail why IKEA strategies are so effective and why other organization should learn from their current success.…

    • 2324 Words
    • 7 Pages
    Best Essays
    Read More
  • Powerful Essays

    Case Analysis: Ingvar Kamprad and IKEA
    • 1558 Words
    • 7 Pages

    Case Analysis: Ingvar Kamprad and IKEA

    Our group will illustrate IKEA’s general development in chronological order. We analyze its’ different strategy in corresponding stage, and look into IKEA’s future development.…

    • 1558 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Better Essays

    Ikea Impacts on social and impacts to p
    • 1057 Words
    • 3 Pages

    Ikea Impacts on social and impacts to p

    Ikea was the largest furniture retailer in the United Kingdom. They successfully promoted their product in the worldwide. Their product was come with a common impression: unique design and affordable price. What they have done is to make the style more accessible (Harrison, 2005) •Compared to the traditional furniture product, they totally changed the old perception: furniture is expensive and if want with better design furniture that is more expensive. The design of Ikea product was break out perception of peoples, where easy assembly and can carry by themselves back home. Furthermore, Ikea Company was provided a new shopping style which is one-stop shopping experience: people can buy and take their furniture home in the same day. All of their product 1production and design by themselves: even for the raw material they have their own manufacturer factory. Other than that, all of the Ikea product are environmentally friendly: they using recycle and reuse raw material to make their own product that without using chemicals to make furniture. Those strategies and plan were contributed by its originator, Ingvar Kamprad. The furniture company- Ikea was having great impact on society and peoples.…

    • 1057 Words
    • 3 Pages
    Better Essays
    Read More
  • Powerful Essays

    Professor
    • 6347 Words
    • 26 Pages

    Professor

    On January 01, 2009, Modern Material Handling announced that IKEA Group3 (IKEA), world‟s largest furniture retailer4, had won the Modern‟s Productivity Achievement Award5 for the Warehousing/Distribution segment for the year 2008-09. Founded in 1943, in Sweden, IKEA focused on offering a wide range of good quality, stylish, well-designed, and functional furniture at a low cost so that more people could afford it. IKEA kept cost reduction at the center of any decision making. It made efforts to improve its internal supply chain processes like packaging, warehousing, and transportation which contributed to its cost cutting objective. Its most differentiating factor was its flat packaging system which had significantly improved its operational efficacy. IKEA was ranked 35th in the list of the top 100 brands by Business Week6 for the year 2008-09. The company‟s brand value was estimated to be US$ 10.9 billion in 2008. For the financial year 2008, IKEA registered sales of US$ 28.8 billion. According to industry experts, IKEA‟s supply chain management was the key factor for the success of the company. The company considered factors like carriers used for transportation and pallets used in warehouses to base its decisions like furniture design and packaging. As a result, IKEA was managing its costs better than its competitors and was able to offer products at 30% lower costs. IKEA maintained a long-term relationship with its suppliers and assisted them in improving their processes so that it would help in cutting costs further. The company did not offer free…

    • 6347 Words
    • 26 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    IKEA case study
    • 440 Words
    • 2 Pages

    IKEA case study

    IKEA’s view of value creation and delivery assists customer loyalty by creating a strong brand culture. Nowadays, people are becoming brand conscious thus helps IKEA in retaining more customers. The company is customer oriented which make its products based on consumer needs. IKEA sells stylish furniture at such a low price that is really affordable and more people buys it, which in turn increases sales and customer loyalty. Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring you even more customers. IKEA started as a pure Scandinavian furniture seller with a standard product but latter on get mixed with local culture of country and life style as in case of China. In addition, convenience of going to IKEA stores is another contributing factor to customer loyalty. The stores are near to public transport places and shoppers view furniture on the main floor in scores of realistic settings arranged throughout the cavernous showrooms (Wild et. al., 2007). IKEA has started a home delivery service and assembly service to make it more convenient for the customers. Not only this people who are very busy in life and cannot go to the brick store, they can also order through World Wide Web for the furniture and IKEA will deliver it to their doorstep (IKEA, 2012). Also, the company started additional services such as food outlets, food market and Kid’s corner to entertain its customers who comes for shopping.…

    • 440 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Ikea Research Paper
    • 1538 Words
    • 7 Pages

    Ikea Research Paper

    The purpose of this research essay is to update IKEA’s company status for the last six years, i.e. 2003 to 2009/2010. The IKEA vision “to create a better everyday life for the many people” is at the heart of its business, in collaboration with the IKEA business Idea “to offer a wide range of well designed, functional products at low prices.” IKEA, a Swedish home furnishings retailer, is known today as the world’s largest designer and retailer of inexpensive, functional furniture. The company’s core competence involves manufacture and distribution wherein they sell their products, through catalogues and websites in addition to in-store retailing. It is important to note that IKEA ensures the development of proper strategies to ensure its survival in the industry.…

    • 1538 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Good Essays

    IKEA operations management
    • 4802 Words
    • 23 Pages

    IKEA operations management

    IKEA is the most successful furniture retailer in the world. The product line consists of well-designed furniture at low prices. During 2011, IKEA has reported 25.2Billon Euro total revenue and 2.966Million Euro net income. This success was not achieve in one day; it took long time and careful planning in order to achieve customer requirements…

    • 4802 Words
    • 23 Pages
    Good Essays
    Read More
  • Powerful Essays

    Ikea Business Essay
    • 15218 Words
    • 61 Pages

    Ikea Business Essay

    IKEA is one of the most recognized furniture brands all over the world. It appeals mostly to the young and hip audience, as it…

    • 15218 Words
    • 61 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Delivering Value: A Case Study of IKEA
    • 3908 Words
    • 13 Pages

    Delivering Value: A Case Study of IKEA

    In China, as living conditions continue to improve, people are becoming more and more willing to invest in home decoration. People’s increasing purchasing power has driven the furniture market to develop in leaps and bounds. From 2010 to 2013, the sales value of wholesalers and retailers above a certain scale in the industry grew at an average annual rate of 41%. In 2013, the growth slowed down somewhat to 21%, with sales value reaching Rmb195.75 billion.…

    • 3908 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Best Essays

    Ikea Supply Chain Analysis
    • 4704 Words
    • 19 Pages

    Ikea Supply Chain Analysis

    IKEA is being well known on high quality and low price (IKEA sustainability report, 2011). They are trying to concentrate on satisfying their customers’ requirements in all aspects and conducting marketing approach on customer needs, especially for quality services (Jonsson et al, 2010). In addition, IKEA has a great public image to customers due to exploiting corporate responsibility on their product quality control (Ikea.com, 2012).…

    • 4704 Words
    • 19 Pages
    Best Essays
    Read More
  • Powerful Essays

    Smart Innovation and Sustainability of IKEA
    • 1763 Words
    • 8 Pages

    Smart Innovation and Sustainability of IKEA

    SMART INNOVATION AND SUSTAINABILITY OF IKEA GROUP 3 Outline Review from Midterm Excerpt of IKEA SWOT of IKEA IKEA Business Model IKEA Network IKEA Innovation IKEA Niche Market IKEA Sustainability Strategy IKEA Products The Use of Technology in IKEA compare with IKEA and Wal-Mart Conclusion Excerpt of IKEA (1/3) 1943 IKEA established 1948 Furniture Business,…

    • 1763 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Best Essays

    Ikea in China
    • 1215 Words
    • 4 Pages

    Ikea in China

    IKEA is recognized as one of the reputed brands of Sweden, operating in the segment of ready-to-assembled furniture’s, fittings, appliances, and many others designed accessories and equipments. Although it entered in this segment in the year 1943 in Sweden but very quickly it expanded its operations in the markets of China as well. It is mainly due to its modern architectural stylish designs and eco-friendly nature. This helped Ikea to improve its brand image and profitability by almost 50 percent as compared to previous years. This proved extremely effective for Ikea to enhance its customer bases and reliability in the market among many other rival players (Inter IKEA Systems B.V. 2012). Due to this strategy, the organization also expanded in Norway, Germany and Denmark.…

    • 1215 Words
    • 4 Pages
    Best Essays
    Read More
  • Better Essays

    IKEA India Entry Strategy
    • 8154 Words
    • 35 Pages

    IKEA India Entry Strategy

    Marketeer (2006). '_World Case: IKEA - It 's Time to Change '_, [Online]. Available <http://www.marketeer.co.th/inside_detail.php?inside_id=3630>, Accessed 20 April 2012.…

    • 8154 Words
    • 35 Pages
    Better Essays
    Read More
  • Powerful Essays

    ikea- individual assignment
    • 2705 Words
    • 11 Pages

    ikea- individual assignment

    I have chosen to analyse IKEA as most household are likely to have an item from this retailer. Also, from doing background research, its entrepreneurial and innovative schemes since 1943 urged me to do further research to discover how it grew and expanded to 41 different countries around the world. I have specifically evaluated IKEA UK, by analysing the importance of their products, consumers and staff members and how their drive is to give a positive equal portrayal of themselves, the environment; ways to reduce wastage through encouraging their audience to take part in environmental activities. I will also touch upon the IKEA foundation and accomplishments within the charity sector and financial background including some positives and negative of tax-exempt organisations link with IKEA.…

    • 2705 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Good Essays

    SWOT ANALYSIS IKEA
    • 722 Words
    • 4 Pages

    SWOT ANALYSIS IKEA

    Unlike IKEA’s largest competitors, the company has fairly diversified businesses. In addition to its furniture products, the company operates restaurants, houses and flats. Although, firm’s main business is designing, manufacturing and selling furniture it is not…

    • 722 Words
    • 4 Pages
    Good Essays
    Read More

Related Topics