The IKEA Concept exists in every part of our company, from design, sourcing, packing and distributing through to our business model. IKEA is already drawing up plans to enter markets like China and India with a clear strategy of cost leadership, which it hopes, would yield benefits to the company.
Some social listening on Pinterest, for example, uncovered a trend: The IKEA experience is not the same worldwide. Conclusion IKEA is a well-known global trend and through its innovative business model and its focus on products, processes, and systems, it has managed to stay ahead of the competition in the furniture retailing business.
Though the company tries its best to implement uniform quality across its product range and Situation analysis of ikea its locations, replicable and scalable control of quality is a key weakness. Another key strength of the company is its clear concept which translates into an array of products that can be assembled by the customers themselves leading to humungous cost reductions which are then passed on to the customers.
The company is known for its modern architectural designs for various types of appliances and furniture, and its interior design work is often associated with an eco-friendly simplicity. Digital communications must be transparent, sincere and address a customer need on a macro website, Facebook page and micro Twitter post, Facebook comment level.
This has translated into an articulate and well-defined business strategy and an approach to retailing, which is pioneering in its simplicity and deadly in its targeting of competitors and effective in its positioning. Existing customer loyalty — some customers in the U.
One group are the young urbanites. The company has a presence in the online world as well and the total sales from its online and offline businesses are more than a Billion Dollars per year. Gain a larger customer base, who desires to remodel and renovate Ability to engage customers in social media can lead to stronger brand loyalty Leverage online and social media channels to build a following and appreciation for the brand and product lines Sustainable and environmentally friendly business Growing online market, who responds well to social media promotions and brand interactions Threats: For instance, several regional and local companies have caught on to the DIY bandwagon and are also focusing on costs which means that to stay nimble and agile, IKEA has to come up with newer strategies.
To do this would require fresh thinking and a new approach to its strategy that would combine low cost leadership with additional drivers of success like scalability and focus on quality. Many marketing research companies rank IKEA in their top 10 companies for customer satisfaction Weaknesses: It is achieved by combining function, quality, design and value — always with sustainability in mind.
Strengths The biggest strength that IKEA has is its clear vision, which is to add value to its customers irrespective of the market conditions.
In addition to having a strong presence on social media, across different social channels, IKEA utilizes social media to form relationships with their current and future customers. Some of the videos on the Small Spaces channel receive over 6 million views and address the issues that urbanites face, such as: The company can diversify into other products and product lines as it can replicate its business model in other realms as well.
With its obsessive focus on cost leadership, quality sometimes goes for a toss especially in the present context where the costs of many inputs and raw materials has gone up and which has impacted the profitability of the company. This shows that IKEA is a forward-thinking and realized that their average customer is changing to be a digital native — or someone who grew up around technology and utilizes different apps, programs, devices to shop and interact with brands.
Social media channels, such as YouTube, allow IKEA to address a market need and market to a specific target audience with a higher effectiveness.
With the advent of the internet and online shopping, DIY as a key driver of strategic success is no longer the sole USP or Unique Selling Proposition of IKEA and with the proliferation of Situation analysis of ikea retailers who can provide even lower costs because they do not have a physical presence means that they are snapping at the heels of IKEA.
The point to be noted here is that it is sometimes difficult to maintain quality in the context of increasing costs and the need to replicate standards across its locations worldwide. The products sold by IKEA are mostly ready to use and flat packed meaning that they can be assembled by the customers themselves.
It also enables the brand to target its effort more precisely, tailor its promotional message and have a authentic dialog with its customers. IKEA measures its strengths using the metrics provided by the KPIs or the Key Performance Indicators that include increased use of renewable materials, smarter use of raw materials, establishing and maintaining long-term relationships with suppliers and leveraging the efficiencies and the synergies from the economies of scale.
The IKEA stores show roomscatalogs, and social media channels are filled with inspirational ideas that spark creativity. IKEA has its share of problems. Initially IKEA was a mail-order business and began selling furniture later. Needs to show a strong social media campaign ROI and increase sales Would like to capitalize on the growing social media consumer engagement Wants to look into social media trends and understand what drives customer to mention the brand Gain understanding as to how customers wanting to remodel can benefit from a social media campaign SWOT: Social media enables IKEA to participate in the conversation with their customers and allow the conversation to be more authentic and fluid.
Finally, the company can enter the emerging markets where its products and its business model are likely to be met with success and the untapped customer base can be leveraged. The Swedish furniture maker strives to break through some of the stereotypes and has risen to the challenge or in some cases surpassed it.
Social Media Marketing Plan 1.A SITUATIONAL AND STRATEGIC ANALYSIS OF IKEA AND THE FUTURE AUTHOR: ANTHONY AYODELE COURSE: BUSINESS ORGANISATIONAL POLICY SUPERVISOR: PETER AKINSOWON MODULE: PM A SITUATIONAL AND STRATEGIC ANALYSIS OF A SITUATIONAL IKEA AND THE FUTURE AND. a situational and strategic analysis of ikea and the future a a a a a a a a anthony ayodele, ikea and the future page 2.
Situation Analysis and Insights (SWOT and 4C’s) IKEA is more than a multinational modern furniture company. IKEA, as a brand, is a philosophy for everyday living – a philosophy of simplicity and functionality. Situation Analysis ) Founded in by Ingvar Kamprad in Scandinavia, IKEA is the world’s top furniture retailer with sales approaching $12 billion.
If you continue browsing the. In this report, the analysis of the present situation of IKEA will be carried out by using different marketing tools. With this, IKEA will be examined via the use of SWOT Analysis.
The basis of external and internal analysis is to construe factors that can affect the said business to situate itself to take advantage of opportunities, and manage.Download