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IKEA case study: Brand's true strength

IKEA marketing strategy case study and IKEA SWOT and PESTLE analysis

Case study of any organization provides the critical issues raised in any organization. Here, in this case, study, we will talk about IKEA, which is a well-known Swedish furniture company offering inexpensive products for your home. The following IKEA case study is on the IKEA marketing strategy case study and IKEA PESTLE analysis.

Overview: IKEA case study

IKEA is a privately operated international home appliance retailer that sells flat pack furniture, accessories and bathroom and kitchen items in its retail stores worldwide. A leader in Flat-Pack Design Furniture at affordable prices, it is now the largest furniture retailer in the world. Currently headquartered in Hayden, Netherlands, it is one of the largest furniture retailers in the world. IKEA is an acronym for Ingvar KampradElmtarydAgunnaryd derived from its founders and native characters.

Ikea business case study

The IKEA aims to "create everyday life to create a better day for the maximum number of people", and offer great designs and a wide range of home products at the lowest possible prices so that the maximum number of people can buy them." IKEA's USP or Unique Sailing proposes to promote DIY (Do It Yourself) culture by making and assembling furniture that can be easily made by ordinary or non - professional people.

In this way, IKEA minimizes costs and follows their vision and mission statements and gives customers great value for every purchase they make. Last year, global revenue from the IKEA Group was Euro 41.3 billion.  Ikea invested INR 800 crores in India, and has more than 9500 Products and has more than 350 stores in 35 countries. According to media reports, the new store is spread across 400,000 square feet in the southern city of Hyderabad & plans to invest 105 billion rupees in India.

IKEA marketing strategy case study: In this section, we will discuss the in detail SWOT and PESTLE analysis of IKEA.

In-depth SWOT analysis of IKEA

Strengths: IKEA is a creative and innovative brand that beautifies homes by offering a wide variety of furnishing products. The company has a strong global brand identity and attracts customers from key populations. They have a unique business model that ensures it does not have a direct competitor on a single-base basis.

Weaknesses: IKEA has not performed well in the Asian market compared to other markets. In Asian markets, the company also has a presence as demand declines. Also, the company has seen increased competition from other strong brands in Asian markets that offer high quality and affordable products.

Opportunity: IKEA has significant opportunities in emerging markets. The company will increase its revenue and profits if it can improve its brand presence and demand in these markets. Also, the company may engage in strategic partnerships with other leading brands in emerging markets; Especially in Asian markets.

Threat: Demand for premium products has also increased as a result of improved economic conditions. It poses a significant threat to the affordable products the company offers. Also, more competitors are entering the market at lower prices, so the company must strengthen its unique products to gain a competitive advantage.

In detail IKEA PESTLE analysis

Political: Political factors affect IKEA in various issues. IKEA acknowledged in 2012 that it used prison workers in East Germany in the 1970s and 1980s to produce its products. Supply chain disruption is another political issue affecting IKEA. In recent years, India and China have reduced barriers to the entry of foreign brands, leading to an increase in brand presence in these markets.

Economic: As IKEA operates in more than 52 countries, it is important to follow the rules of each country. The mainstay of the global economy is how businesses make profits and revenues in international markets. Also, the purchasing power of the people has declined as a result of the global economic downturn. Still, IKEA managed its production prices well, which helped it manage the pressures caused by economic fluctuations.

Social: IKEA may not fit in the social perspective, because, the brand was on fire when it photographed women in Saudi Arabia and removed a gay couple from their magazine in Russia. Social trends are also an important factor to consider and have a profound impact on sales. When there is a certain style trend in the market, the brand has to focus on that trend to compete in the market.

Technology: Digital technology allows IKEA to reach the customer and provide a better shopping experience at a much lower cost, without the need to open new brick and mortar retail stores. Apart from this, the brand is also using augmented reality to improve its customer satisfaction level.

Legal: Legal issues are always a big threat to businesses as laws and regulations vary, and the same trouble with the law proves to be costly. IKEA, in the past, has faced more legal obstacle due to its furniture. The devastation affected families and communities. In such circumstances, IKEA must be assured that the products being sold are safe. Otherwise, there will be lawsuits.

Environmental: IKEA has invested $ 1 billion in the environment by investing in renewable energy. The company aims to make store energy completely renewable. This can be done by investing in wind and solar panels. Also, the brand transfers its resources, such as cotton and wood, from sustainable sources.

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