Marketing ikea is known to be a smart marketer and it

Marketing : IKEA is known to be a smart marketer and it has fantastic product placement in
movies as well as on television. At the same time, it concentrates well on Above the line and
below the line marketing methods to make a strong brand for itself.

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Weaknesses:
Negative Image : IKEA has operations in many countries and that is why it keeps getting into
local troubles in some of them. Ikea got into a corruption case due to expansion problems in
Russia. They recently came in news for issuing an all men catalogue in Israel mocking their
ultra-orthodox Jewish community. Steps like this result in negative publicity.
Control for standards : IKEA main concern is to keep the cost minimal but at the same time
provide good quality service and high product performance. This is not always possible.
Scale ability : IKEA has operations in many countries so same standards are not followed
everywhere. Hence their product portfolio is not entirely replicable in all the locations and
scalable which creates problems for the company. This also increases their cost.
Environmental Problems : IKEA needs to keep in check about its stakeholders. Ikea has been
in the news about environmental issues many times creating a bad brand image.
Increasing Raw material costs : IKEA fundamental rule is to keep the cost low but with
increasing raw material costs it is hard to keep up with the company standards.
Opportunities:
Environmental Friendly : There is a certain growing demand for eco-friendly products in the
consumers these days. This might help in the growth strategy for IKEA.
Cost-conscious Consumers : Consumers are now becoming very cost conscious. They would
opt for such products as they tend to change their furnishing periodically.
Developing Countries : Countries were per capita income is low such low-cost products could
do wonder. China and India would prove to be great markets.
Saturated markets: Places like India and China where there is huge population and where
people need unique solutions to their space usage problems are countries which IKEA should
target and focus on.
Threats:
Counterfeit : Many local/regional companies have copied IKEA ’ products. Ikea needs to
constantly keep updating and innovating their offerings to stay ahead of such copy-cats and not
down trade on their revenues.

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Changing Laws : Changing government laws and tax policies may have a bad impact on the
prices of IKEA products. They might not be able to keep up with their promises if taxes become
very high.
Internet : DIY was a preferred choice for many customers but with the advent of the internet
and social media there is nothing that customers can’t learn and look into. So, IKEA may be
losing its primary success factor of DIY products.
Higher Income : Growth of Disposable Income have led consumers to trade higher in the
market chain.