IKEA SWOT Analysis.

IKEA Strengths in India are as follows:

 It has a strong brand name in the global market.

 Take Cognizant of attitude to cost effective and good quality for lower prices

which they referred to as “Democratic Design’

 Invest more on market research which helps IKEA to be pro-active about entering

into India markets.

 Because of its bulk purchasing it enjoys Economies of scale.

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 Because IKEA deliver its products directly from the supplier to IKEA retail outlets.

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the handling costs, and cost of conveying it products is lessen.

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Weaknesses rs e
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• One of the major problems IKEA faced in establishing itself in India was
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communication barriers. The company management needs to maintain effective

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communication within the organization and their consumers.

IKEA continuously innovates differentiated products but its competitors in India

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market are catching up with the copies of their own products.

 IKEA has limited advertising and promotional strategies in India.

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 Cultural differences is a problem

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Opportunities
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The opportunities that are available for IKEA in india market are enormous but son=me

are mentioned bellow.

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  There is increasing demand for environmentally friendly products which IKEA is

accustomed to.

 Also, increase in demand for low priced products may prompt consumers to

patronize less expensive IKEA stores.

 IKEA is planning to attract the new generation by its low priced, modern and

stylish products to attract younger generation in India.

 The Foreign Direct Investment is in single brand retail.

 The raw materials are available in abundant at lower cost.

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Threats

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Government regulations restrict foreign companies on their investment in

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 Another, problem is space constraint. It is difficult in India to acquire large
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land in India.
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 The concept of Do-It-Yourself is not popular amongst consumers.

 The furniture industry in India has strong market forces that could influence
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the company’s market value.

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This study source was downloaded by 100000808442158 from CourseHero.com on 08-17-2021 11:56:42 GMT -05:00

https://www.coursehero.com/file/41923514/IKEA-SWOT-Analysisdocx/
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