Ikea; a Global Strategy

Report on “IKEA’s Global Strategy”

Table of Contents

Executive Summary 3
Introduction – Background on IKEA 4
1 – ‘DEPICTS’ Analysis of IKEA. 5
1.1 - Demographics: 5
1.2 - Economic: 6
1.3 - Partners: 6
1.4 - Innovation: 6
1.5 - Competition: 7
1.6 - Infrastructure: 7
1.6.1 - Physical: 7
1.6.2 - Technological: 8
1.7 - Political/Regulatory: 8
2 – Global Standardisation Approach. 9
3 – Opportunities and Threats. 10
3.1 - Opportunities: 10
3.2 - Threats: 10
4 – Competition within the US. 11
Conclusions 12
Recommendations 13
Bibliography 14

Executive Summary
I was asked to draw up this report analysing “IKEA’s Global Strategy”. Within the report I will critically analyse IKEA as an organisation, their approach to globalisation, opportunities, threats and their competition within the North American market.
On analysing IKEA I found them to stand up very well under the “DEPICTS” analysis tool. They adopt a standardisation approach worldwide; have great opportunities with their environmental policy, worrying threats with consumer confidence and strong competition within the United States market.
I concluded that while IKEA is such an enormous organisation, with great efficiencies, there are areas in which they can improve, e.g. their logistics or environmental policy.
Relationships between IKEA and their partners must remain well maintained in order for them to improve efficiency and give them opportunity for even more expansion.

Introduction – Background on IKEA
“How Swede It Is!” IKEA is the world’s largest furniture manufacturer with 276 stores in 25 countries. The word IKEA itself is an acronym which stands for Ingvar Kamprad Elmtaryd Agunnaryd. Ingvar Kamprad is the founder of the company which was incepted in 1943. Elmtaryd is the farm on which he was raised, while Agunnaryd is the parish of Småland, southern Sweden from which he hails.
While IKEA is a furniture retailer, they’re also renowned for exporting...