1. Presentation of the SWOT example
IKEA is a Swedish company created in 1943. It is now the world’s leading producer of home furnishings.
We have conducted a literature review on the global furniture market. At the same time, we have conducted an in-depth analysis of the IKEA Group’s website and key figures.
As a result, we present you with the synthesis of the internal and external diagnosis of the SWOT analysis of the IKEA 2021 company below.
2. Internal analysis of the IKEA company
The strengths of the IKEA company
- Better knowledge of customers’ needs and expectations;
- Strong innovation capabilities;
- Wide range of products;
- Supply chain integration;
- Top of mind” reputation in the furniture market;
- Cost control through economies of scale and experience.
The Weaknesses of the IkEA company
- Standardized products that do not always satisfy the increasingly specific and personalized needs of customers;
- Decrease in quality;
- Poor adaptation to the cultural specificities of different foreign markets;
- The poor reputation of the IKEA brand among a good number of consumers.
3. External analysis of the furniture market
The opportunities of the furniture market
- Huge growth potential in emerging countries;
- Consumers’ enthusiasm for decorating products and accessories;
- Increased international openness of foreign markets due to free trade agreements between countries;
- Positive effects of globalization have helped the company to market its products in several countries.
The threats in the furniture market
- Negative impacts of the Covid-19 pandemic on the purchasing power of the global consumer;
- The arrival of new competitors;
- The serious threat of substitute products, notably handmade products and the DIY (Do It Yourself) phenomenon;
- Consumerism and the fight against indoor pollution.
4. Summary of the SWOT analysis Example IKEA
Here is a summary table of the SWOT example of the company IKEA.