IKEA Catalogue

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Weakness For every weakness lies an opportunity for progress. This segment will analyse IKEA’s shortcoming from an internal perspective with the same focus on internal resources and current processes. It will also discuss the current solutions undertaken to overcome and manage the issues. Financial resources IKEA has a weak presence in Asia with only nine stores currently in Southeast Asia. In order to penetrate the Asian market, mini IKEA stores are slated to roll out in smaller cities as a low-cost method to reach the growing middle-class (Inside Retail Asia, 2018). Our first mini showroom will roll out in Thailand before expanding to Manila by 2020 and Vietnam by 2022. Each miniature outlets costs approximately a 30 th of a full-scale IKEA store and will have minimal products in stock as items purchased will be delivered from our larger counterparts in major cities.
Current processes The main concept of IKEA’s product is the ideal balance between low prices and good quality. However, the rise in cost of raw materials has substantially affected IKEA’s profit margins, making it challenging to maintain the quality of products in a cost-increment environment. The massive production scale further aggravates this profit realisation. However, IKEA has withstood the test of time even during the economic recession in 2008. In fact, IKEA’s market share increased significantly as a result of strategic change. In order to be operationally cost-effective, IKEA cut back on luxury air travel and hotel stays for its employees (Strategic Business, 2012). Further, instead of reducing volume due to lower demand, the company pushed for higher volumes to benefit from lower cost of goods and operating costs. IKEA was also focused on lean management in the supply chain and work empowerment was crucial in driving business growth.
Page 1 and 2: BUSINESS REVIEW The IKEA Effect: Co
Page 3 and 4: STATE OF IKEA’S BUSINESS TODAY Th
Page 5 and 6: Physical resources Thanks to bulk b
Page 11 and 12: Apart from cost of production, the
Page 13 and 14: Organisation structure Good compani
Page 15 and 16: The IKEA Effect: The Experiential M
Page 18 and 19: Most IKEA stores also feature a res
Page 21: Creative Content Marketing Traditio
Page 25 and 26: More Purchases with Tech Assistance
Page 29 and 30: 4 PORTER’S FIVE FORCES Bargaining
Page 31: There are currently seven IKEA stor
Page 34: Our Mission and Vision At IKEA our

IKEA Catalogue

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