Master level analysis regarding IKEA's strategic management : strategic direction, business level strategies, corporate governance management, etc.
[...] Star furniture is another small competitor to IKEA as they are a furniture store located in Texas. Nebraska Furniture Mart is also another small furniture store that is located in a few locations, Nebraska, South Dakota, Iowa, Kansas, and Missouri. Staples and Office Depot do not specialize in furniture; however, they are competitors with IKEA in the business furniture market. Wholesale companies such as Costco and Sams are also competitors with IKEA as they increase their furniture retailing business. Industry Environment Industry Environment (Porter's 5 forces): The ready-to-assemble (RTA) furniture industry The Bargaining Power of Buyers: When considering buyers as customers in the RTA industry, their bargaining power is relatively low. [...]
[...] The 2006-08 housing slowdown and mortgage crisis has devastated home sales, accounting for much of the decline in furniture spending. Although the recent financial crisis is affecting many furniture companies, IKEA has a potential advantage over the industry. During times of economic distress, consumers tend to purchase low cost items. Since IKEA is especially known for its low cost, high quality, RTA products, they may actually gain more market share than their competitors. Additionally, the increase in oil prices is affecting IKEA's cost of deliveries throughout their organizational structure. [...]
[...] Each year more copies of the IKEA catalog are printed over the Bible (CM Offcuts), which is demonstrative of the vast number of potential consumers the catalog is reaching. Their marketing also extends into commercials, billboards, and bus ads. Currently IKEA's marketing campaign is designed to combat the market downturn and emphasize love of the house and home. Their hope in the campaign is that their consumers will continue to purchase home furnishings even though there is a large economic downturn. [...]
[...] The main objective of the contest was to look for the town that had the best vision for their future and businesses that needed the most interior decorating help. This allowed IKEA to increase their brand awareness in a good light by helping out communities (ikea.com). Political/legal forces: IKEA has recently been involved with several recalls on their products which could harm their image and ultimately the value perceived by their customers. For example in October 2008, recalls included the three following products. [...]
[...] IKEA has also has succeed by running a company that is for people and the environment. Not only do they provide consumers with a unique experience and low cost products, they also want the origin of their products to provide value. IKEA strives to have their products made under acceptable working conditions by suppliers who take responsibility for the environment. As consumers become more conscious of their personal effects on the environment, they will become more interested on how what they purchase affects the environment. [...]
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