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The SWOT Analysis Of IKEA

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Introduction
IKEA was founded in 1943 by the then-17-year-old Ingvar Kamprad, the companies name is an acronym that is a combination of his initials , plus the first letter of the farm (Elmtaryd) and village (Agunnaryd) where he grew up. Nowadays IKEA has developed into one of the bigger multinationals around the world. Since 2008, it belongs to the world’s largest furniture retailers. The company is known worldwide for its ready-to-assemble furniture for a relatively low price, while still delivering good quality products. As for Mr Kamprad, he has got a real time net worth of $3.8 billion.
The aim of this report is to investigate whether IKEA is a company that is ready for the future. In order to do this we will start with an outline of …show more content…

The first letters of the factors are why it is called a SWOT analysis. As a result of this analysis the organisation can weigh its strengths and weaknesses against the opportunities and threats, so that an effective strategy can be created. This can be achieved by making sure that the opportunities are not overlooked and are combined with the organisations’ strengths. Meanwhile, the organisation has to eliminate the threats by reducing the impact of its …show more content…

Whilst there are other techniques available that can act as a planning tool, the SWOT analysis can be the most effective one.
Evaluating the organisations strength can help to determine the allocation of resources in a way that will provide the highest potential for profitability and revenue growth. This is often a result of the discovery of competitive strengths by the management team, which were not fully utilized in the past, while researching how the organisation can compete most effectively. When the organisation looks for the company’s weaknesses they often discover critical areas that have to be improved, if they want to compete more effectively. Moreover, assessment of weaknesses gives a realistic image of its capabilities, and can prevent strategic blunders. The SWOT analysis also helps with seeking new

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