enable customers to live a more sustainable life at home. IKEA is developing effective solutions for customers in order to support them recycling or reusing used products, aiming at not letting any products end up at a landfill and use recycled materials used in producing new IKEA products. Sustainable use of resources IKEA aims for zero waste to landfill, wastewater treatment and programs to reduce its use of water. Reducing carbon footprint, IKEA aims to reduce energy use, use more renewable energy, cut its use of air transport and reduce packaging Its green transport initiative includes an aim to reduce business flights by 20 % in 2020 and 60% by 2025 developing social responsibility. Also, OLGA chairs are made using the dust from saw mills and another product, the LACK table uses less wood needed. Because IKEA is taking gradual steps to be sustainable, the company can benefit from the growing demand for greener products. Not many furniture companies make their products in and environmentally friendly way giving IKEA an opportunity to attack that specific target market, which is consumers looking for a sustainable piece of furniture. 4. Additionally, strengths can also counteract threats. Discuss how IKEA can use its strengths to counteract the “social trends of a slowdown in first time buyer entering the housing market.” For the most part, major threats that are posed on IKEA’s business are based on economic factors. For example, a large threat to the company is that consumer spending has slowed, and disposable income has reduced. This means that
11 consumers want to spend less on housing and furniture because of the recession. The strengths of IKEA’s business can counteract the threat of “social trends of a slowdown in first time buyer entering the housing market” by ensuring consumers that their products are very affordable. They can further the argument by ensuring their customers that IKEA products are quality, dependable, and sustainably made. 6. In your opinion, do you believe companies pursuing social responsibility programs such as ‘environmental sustainability’ is in the best interest of the company’s shareholders. Being a socially responsibility company can improve a company’s image and help build its brand. The public’s perception of a company is critical to not only customers but to shareholders as well, by projecting a positive image, a company can make a positive name for itself by not only being financially profitable but socially conscious as well. Building relationships with customers is golden for a successful company and having a social responsibility policy can impact the buying decisions of customers.
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- Spring '14