Name: Md Rajaul Karim

Student ID: 21174021

IKEA is a Swedish Company known as the world’s largest furniture retailer. Since it was
founded in 1943. It is growing rapidly in European market and expanding to other markets.
Recently the company is selling food products as well. In 2008, the company generates 21.2
billion Euros. The IKEA vision ‘to create a better everyday life for the many people’.
SWOT analysis: For finding out future strategy of IKEA, we need to do SWOT/TOWS
analysis. From the below matrix, we can easily find out the future strategy.

External

Opportunities(O)
1. Online sales platform
2. Capture market in other than
Europe
3. The search for local pattern
and colors.
4. Increase the number of food
items
5. Expansion in retail chain
Threats(T)
1. Competitor growth
2. Ecofriendly production will
increase product cost
3. Economic condition of
customer
4. Choice of product of different
geography is different.

Strengths (S) S-O S-T

1. Brand recognition.
2. Low cost of product Max-Max" Strategy "Max-Min" Strategy
3. Diversified Product 1. Expand globally 1. Acquire competitor
Portfolio. 2. Increase sales staff
4. Integrated food chain 3. Increase advertising
along with food 4. Develop new products
supply 5. Diversify
5. Good web platform

Weaknesses(W) W-O W-T

Internal

1. Standard Products.
2. Flagship stores are "Min-Max" Strategy "Min-Min" Strategy.
not located in city 1.Joint venture 1. Increase promotion
centers. 2.Expand nationally
3. Too many stores in 3.Forward integration
certain markets.
4. Challenges in retail
chain
5. Don’t have supply in
markets in Asian
market
Name: Md Rajaul Karim
Student ID: 21174021

Considering this SWOT/TOWS matrix, the company can take below strategy.

1. Strength-Opportunity Strategies (S-O, Max-Max)

a. Expand globally: As the company is generating revenue and demand of product is
high. In future the company may expands its business in other part of globe. Like
Asian market.
b. Increase sales staff: For increasing its business, its required to increase its sales
force for better output.
c. Increase advertising: For penetrating in new market, advertisement is prerequisite
d. Develop new products: The company is also focusing on food items. If they want
to supply food in Asian market, it is needed to increase food geography specific
food items. More the customer choice is changing rapidly, and modern
technology introduced. So, new products of furniture items also need to be
increased.
e. Diversify: As company has ability to invest and have opportunity to expand in
different geography. So diversity is required among the product range, people,
other business as well
2. Strength-Threat Strategies (S-T "Max-Min" Strategy)
a. Acquire competitor: As the company has very good reputation this can be
increase its business by acquiring other competitor company. This will help to
reduce the thread of competition.
b. Expand locally: If IKEA invests more in local market, this help to generate more
revenue.
3. Weakness-Opportunity Strategies (W-O "Min-Max" Strategy)
a. Joint venture: In Asian market, there is footprint of IKEA. So it can collaborate
with local supplier in Asia. Can also work with NGOs for its promotion. There is
strong point is that IKEA operates in ecofriendly way.
b. Expand nationally: As the quality of range of product is well reputed and price
also competitive. So the IKEA can expands its operation from one country to
another.
c. Forward integration: The company can invest in distribution, retail shop to
minimize the costs of products.
4. Weakness-Threat Strategies ( W-T “"Min-Min" Strategy”)
a. Increase promotion: IKEA can easily reach to its potential customer through add
in social media or other media. Also help to differentiate its product from
competitor. These will help to its expansion in Asian market.
Name: Md Rajaul Karim
Student ID: 21174021