Some Important Tips to write Case Study assignment on IKEA in Australia

In this article, students will get an in-depth sampling of Case Study assignment on IKEA. Using this case study, students will get a clear idea about how to discuss a SWOT analysis of IKEA.

IKEA is the manufacturer and retailer of home furniture and accessories. This privately owned company has a chain of retail stores all over the world. This manufacturer is the pioneer of cost effective flat pack designed furniture. Despite the Swedish origin, the manufacture is now a global player in the furniture industry. In Australia, This Company is jointly operated by two companies. Maximum numbers of stores which are located mainly in Queensland, Victoria and New South Wales are owned by INGKA Holding and stores elsewhere in Australia including Western Australia and South Australia are operated by Cebas Pvt Ltd.

 

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The company is one of the leading names in future retailer industry. This retailer first started the concept of Do It Yourself furnishing. The company always ensures that the cost factor remains minimal. Flat packed furniture means furniture that can be easily assembled by the customer. These kinds of furniture don't need any specialized installation. The key drivers that have ensured the strategic success of IKEA are planned approach to retailing and in-depth tactical marketing. Read on to get pro level IKEA Case Study assignment help.

Strengths that has ensured success for IKEA

1.    The main advantage of IKEA is the clear vision about how to add value to their service irrespective of the market situations. High professional and expert business development teams at IKEA always form and implement a well-defined business strategy which leads to bigger and better conversation rate. The business plan of this retailer is distinct, and because of a profound business strategy, the competitors of this retailer are not getting any chance to effectively positioning themselves ahead of IKEA.

2.    Another strong point of IKEA is the award-winning idea of manufacturing cost effective furniture which comes with the concept of fittings that can be assembled by the customer himself. There is no need for any additional installation and this decreases the humungous cost of furnishing or redecoration.

Weaknesses of IKEA

IKEA is a global company which is operational in multiple countries. In spite of being a high standard business, it faces tough situation to maintain and control the quality of production. The company tries to maintain uniform quality throughout the different location and across the different product range. Low quality furniture manufacturing is one of the main weaknesses of IKEA.

With its central focus on cost effectiveness, it sometimes neglects the quality of the product. The main reason behind the decreased quality is the increased cost of many raw materials and parts that are essential for the manufacturing of these goods. The keep up with cost effective factor and the upsurge costing of raw material the quality control is getting affected. The quality of products and the cost effective factor both should get immediate attention from the manufacturer.

One of the biggest Opportunity that IKEA is developing

This leading furniture manufacturer has a great business model. And the company has a place for enormous opportunity to attract new customers and to bind existing ones. The biggest opportunity that this manufacturer provides is cost leadership which is affecting the quality of the product, but customers don't mind compromising on quality when they are getting affordable furniture which is, of course, a significant opportunity for this brand. 

Threats that this manufacturer is facing                

The greatest threat that the manufacturer is facing now is because of the low cost business model. The low cost business model has been copied by its competitors. Because of this issue, the IKEA needs to evolve new models to stay ahead of competitors. To stay ahead of others IKEA needs to go for constant growing the new production line and promoting experimental models of furniture.