Question

I need an internal analysis of Ikea,

for a strategic management class

Answer 1

Ikea is a brand known for its high-quality furniture, home accessories, and appliances in the world. It offers unique design and user-friendly portable installations. They make user-friendly and ready to assemble furniture. Let us do an internal analysis based on strength and weaknesses of the company.

Strength:-

1. Product Design:- Ikea maintains competitive edge due to the unique product design of its products which reflect the clean Swedish lines. These designs are simple, hard to imitate and are unique to the company.
2. Cost:- Ikea products are very cost effective and offer a great value for money for its customer. Customers satisfaction is delivered when the customer experiences positive ROI from the investments in such products.
3. Research and Development:- Ikea as a company constantly researches and innovates around its products to reduce cost and maintain the advantage of unique designs. The company keeps adding different furniture to its portfolio after surveying the market and finding the right suppliers to forecast costs.

Weaknesses:-

1. Cost Control:- Ikea strives to deliver high-quality products at minimal cost which is not achievable every single time due to various external factors. The promise to deliver products at cost-effective rates cannot be overturned so that the brand value of the company remains intact.
2. Hiring Process:- The company follows a management style where they prefer to hire fresh recruits who have never worked in any other enterprise before. Such individuals do not adjust to company’s every time and create a negative mindset. This leads to avoiding experienced international professionals who can bring in fresh idea to the company.
3. Scalability:- Ikea has expanded into different countries where same standards cannot be applied. Their product portfolio cannot be replicated in every country which becomes a huge issue for the company since it increases cost.