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Ikea Company and Its International Retailer Selling - Case Study Example

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This case study presents IKEA which is a privately owned international retailer selling flat-pack furniture, accessories, and kitchen and bathroom items. The furniture of IKEA is designed to withstand such treatments which are much tougher than regular life…
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Ikea Company and Its International Retailer Selling

From this paper, it is clear that the analysis of internal environment would include strengths and weaknesses of the company. The strength of the company lies in its expert marketing abilities and also its location. These are the two aspects which add to the value of the company’s products. It is also a strong global brand attracting key groups of consumers. The company’s scale and size of the company’s business could make it hard to impose quality standards and maintain quality issues. Moreover, some of the countries making IKEA products also do not implement proper working environment legislation. These could account for company’s weaknesses. Some of the key opportunities which IKEA tries to take advantage of being a consistently increasing in demand for greener products. Also, the demand for low priced products remains high. Also, the present financial conditions in the economy across the world predict a gradual decline in consumer’s preference for expensive products. Also, there is high demand for low water usage and low carbon footprints. The company must design a business strategy which would be socially and economically conscious. Thus it would be based on the present market conditions. It is true that the present financial conditions are favorable towards the production of low priced products but soon the situation is likely to improve and this would consequently change people’s tastes and preferences as well. This means that the company must design a strategy which would be adaptive to the surrounding environment if it seeks to avoid losses due to change in tastes and fashion. Going by the existing opportunities and threats facing the company, IKEA strives to develop an environmental and sustainability plan which is central to its business strategy. The plan seeks to continue operations till 2015 and includes social, economic and environmental issues. ... Read More
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