Posted at 05.10.2018
Keywords: ikea swot, ikea competition
IKEA (Ingvar Kampard Elmtaryd Agunnaryd) is a privately had company that offers in home products. It is the world's largest ready to assemble furniture retailer. Founded by Ingvar Kamprad in 1943, they have its head office in Leiden Netherlands (Ingvar Kamprad and IKEA" para. 4). IKEA comprise several companies that are monitored by INGKA holdings (Armitstead, para. 3). The company manages worldwide and has more than 100, 000 employees. This year 2010, the company had earnings of 23. 5 billion Euros with 2. 7 billion as net income.
IKEA is a Swedish company, which is maintained partly by non-profit business and partly by a profit-focused corporation. Its corporate structure is split into two. The first one is deals with all operations as the other handles franchising (IKEA marketing strategy, para. 2). From administration of stores like the Marino Shopping center to design and manufacture of its products is overseen by the INGKA having (Armitstead, para. 5). The company has a total of 265 stores worldwide. 235 of these stores are managed by INGKA holdings while the left over 30 are monitored by franchises, that are not area of the group (Owens, p. 4). INGKA groundwork is an self-employed body, which was established by the creator of IKEA in 1982. The committee that runs the ingka basis is chaired by Kamprad who is the creator of the business. The other users of the committee are the partner of Kamprad and the family lawyer.
Marina shopping center is one of the most prominent stores in Abu Dhabi. It had been initiated by IKEA, which is one of the worlds largest home furniture store. Marina shopping center opened up its gates for the public in March 2001. Additionally it is the biggest retail-shopping vacation spot in Abu Dhabi. From its design and engineering, it is apparent that the proprietors desired it to be a luxury shopping centre (Armitstead, para. 6). Surrounded by a beautiful neighborhood, it provides a perfect place for the family to visit since it provides everything ranging from entertainment to leisure. It really is home to more than 400 stores which range from a hypermarket to a Cineplex.
Vision, mission and objectives
Each department at IKEA has specific mission and vision. Each is required to implement its specific policies. IKEA's vision is to 'create a better everyday life for the countless people'. If people are encouraged they'll com to the stores with this notion and buy the there highly designed home furnishing products (Wainwright, para. 5). The visions primary goal is to build a relationship using its customers. The company also has a fascinating market positioning assertion, which calls for the interest of its customers. It suggests that IKEA is your Partner in better living, it does its part, you need to do yours, and collectively you spend less.
Economic Activities in Western european community (NACE) classifies furniture manufacturers with other production sectors. This group offers work to more than 15, 000 people. Furniture manufacturers can be further sub split into manufacture of chair and seats, make of furniture for business and those found in sales premises and Manufacturers of kitchen furniture (Wainwright, para. 2). The table below shows companies and employees, efficiency and business income.
The major competition for Marina Shopping center are the Abu Dhabi shopping mall. The Abu Dhabi Shopping center residences big furniture and home accessories retail shops. Example of such a shop is the 2XL. 2XL discounts in an array of furniture and home appliances. This offering great competition to the IKEA outlets in Marina Mall. IKEA specializes in furniture and sell great variety home accessories hence it encounters stiff competition from these new entrants that sell similar products (Christopher, para. 6).
Strengths and Weaknesses, opportunities and threats. (SWOT)
Marino Mall provides its products not only in Abu Dhabi but also to travellers from other countries. IKEA is the leading service provider of furniture and home machine in the world. Globally, they have research and development sites (5 Things You Don't FIND OUT ABOUT IKEA, para. 6). It makes and sells its products across the world. Opportunities or opportunities include possibilities that might become available from opponents. Because the company markets large level of products, it allows the business to reap the benefits of economies of scale.
IKEA has various marketing strategies but the key one is the utilization of catalog. This is because the use of catalog is more efficient and effective in comparison to other methods. The catalogs are published in more than 40 different dialects. Distribution of these catalogs ensures that they reach homes, office buildings and various companies. This plan makes the business extremely popular (Daniel, para. 8). Mass circulation of the catalogs to domestic estates enables the business to touch more than 600, 000 homes in UAE alone. The catalog has an summary of IKEA products.
IKEA marketing school of thought revolves around simple ideas like huge product range, low price of the merchandise, efficiency of its products, quality products and convenient shopping. The company prides itself in retailing its products under one rooftop, as is the case in Marino Shopping center. Purchasing of the merchandise is made easy as all products are availed for instant remove. Products are viewed in the right order to make it easy for customers to choose.
Marketing Strategies and Planning
IKEA has a simple marketing strategy. The idea is to provide an array of practical furniture products at reduced prices. This enables many visitors to manage their products thus increasing their gross annual revenue (IKEA marketing strategy, para. 4). By building the IKEA brand, many people are mounted on it psychologically. Consumers therefore associate the brand with the trustworthiness of the company. The brand image has been built going back 50 years.
Apart from the stores, IKEA uses various channels to reach their many customers. As discussed the best channel is the use of catalogs, accompanied by websites, brochures and advertisement. Other methods applied include special offers, and marketing. IKEA has launched other ways to ensure that their products reach the clients (IKEA online marketing strategy, para. 6). These include integrated marketing and advertising advertising campaign and global interactive marketing service.
IKEA Lead just how in neuro-scientific self-assembly furniture, studies showed that IKEA is a high supplier of products like even load up bookshelf, PUGG clock, mattresses, wardrobes and bathroom items. IKEA gets the benefit of offering a number of different items. The business's products are exchanged at various shops like the Marina shopping mall. Most of the sales are in European countries and Asia; therefore, the business does not incur huge cost of export. Live goes fast and the business create products that help people on the move to live pleasantly (Henley, para. 4).
Threats: possible future changes and troubles from competitors
Companies like 2XL release new much better furniture so speedily and poses a great menace to its rivals. The company is starting new outlets not only in Abu Dhabi but also in other parts of the united states (IKEA marketing strategy, para. 6). Its offers furniture products used in the living room, bedroom and dining room. Thus, the company popularity is increasing every day. More sales allows them to decreases cost of their products. Such strategies allow these companies to sell their products cheaply.
Justification based on Analysis of SWOT
IKEA has a good branding uniqueness and well-built reputation. Its weakness is the failing to tell apart from competitors. It is operating in an ever-changing environment in which not a solitary company can assert to be on stable floor. Therefore, the opportunities are unlimited. The threats which it faces comes mainly from its competition (Sundayherald. com, para. 3). The business should therefore change its strategy to be able to change and overcome the great competition. It will use the power that it retains a strong position in furniture industry. Finally, the company should lower enmity using its competitors