A Swot Analysis For Ikea

Introduction

The story begins in 1926 when founder Ingvar Kamprad was born in Småland in southern Sweden. He is raised on 'Elmtaryd', a farm near the small village of Agunnaryd. Even as a young boy Ingvar knows he wants to develop a business. By the age of five he discovered how to make profits from selling small things such as matches, flower seeds and greeting cards. At the age of 17 he founded the company and named it IKEA. The word IKEA is an acronym incidentally similar to the Greek word οικία [oikia] which means (home) and to the Finnish word oikea (correct, right), but actually was originally an abbreviation for "Ingvar Kamprad Elmtaryd Agunnaryd". Ingvar Kamprad Elmtaryd Agunnaryd comes from the address where Ingvar Kamprad started

It promises the same quality and range worldwide. With their vision 'to create a better everyday life for many people', they carry a strong concept since they offer a wide range of well designed, functional products at quite a low price. Based on Interbrand, IKEA is the most valuable furniture retailer brand in the world, valued at nearly $US 12.8 billion in 2012. The business operates 332 stores in 38 countries and is present in the major world markets. Worldwide market presence and strong brand reputation ensures that customers will often choose IKEA over its competitors. These strengths contribute to IKEA being able to attract and retain its customers. Another one of IKEA’s main strength is their strong customer knowledge. They know exactly what the customers demand for, and that is how they create their unique creative products. They also constantly use innovations to drive costs

This will emphasize on the hiring of people from a mix background and personalities. This will then promote diversity in the company, and bring up new and diverse ideas and point of views. It will also ensure the diverse culture in the firm. Another recommendation IKEA should consider is increasing quality and its products. It has been proven that their products have decreased in quality. Therefor they must fix this problem in order to keep their customers happy. As IKEA is a very positive company who cares about its surroundings. They have already started reducing carbon footprint. IKEA aims to reduce energy use, use more renewable energy, cut its use of air transport and reduce packaging. Its green transport initiative includes an aim to reduce business flights by 20% in 2010 and 60% by 2015. And also developing social responsibility, IKEA's policy includes support for charities such as the World Wildlife Fund, UNICEF and Save the Children. By keeping this up they will also gain a stronger and friendlier brand image. Which will definitely benefit them in the