SWOT Analysis

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IKEA
IKEA is a company known for its high quality and pocket-friendly furniture products. One of the strengths of the company is a worldwide presence, globally it operates 377 stores. Another factor is that IKEA produces a wide range of furniture with numerous designs to choose from; this helps to adequately care for the needs of the customers (Pratap n.p.). The firm also has substantial financial strength; its sales grew by 31.9 billion Euros in 2015 which was 11.2 percent higher than the previous year.
One of the weaknesses of IKEA is a weak presence in the Asian market. The leading share of the IKEA furniture is sold in Europe while Asia only accounts for a small percentage; this is because of reduced demand as the people in these areas rely more on other brands. Asia has a good number of emerging and established brands that cater to the population’s furnishing needs.
Some of the opportunities for the company include a chance to invest in emerging markets; this provides an excellent opening for the company to increase its brand presence in these nations. Also, IKEA can develop strategic partnerships with other brands especially those in Asia where one of the most effective methods of entering and becoming established in these markets is partnering with the local companies.
One of the threats include counterfeits where the regional companies have increasingly copied IKEA products. Another threat is as a result of increased demand for premium products.

IKEA products are at reduced prices which explains why they are affordable. However, improved growth in the economy has led to a growth in the demand for premium products. One of the ways to help the company develop is adding premium products to its collection category. Also, dealing with counterfeits requires coming up with constant updates and being innovative to ensure the company stays ahead of the copy-cats.

Works Cited
Pratap, Abhijeet. “IKEA SWOT ANALYSIS 2016.” cheshnotes (2016): N.p., Web. 14 May 2018.