IKEA operates in an extremely compe

IKEA operates in an extremely competitive industry, defined by many other low-priced, good quality furniture manufacturers namely Galiform, Euromarket Designs Inc., Argos and so forth. Given the attractiveness of the of DIY (Do-it-youself) furniture industry, IKEA continues to compete and grow in markets. such as China, and Japan. Nonetheless, global recession had affected the furniture industry, one of the hardest hit industry then other sectors. As a result previously premium-priced furniture manufacturers Dream (UK) is now reported to increase its market share (Mintel Oxygen, 2010) against IKEA, thus making competition even fiercer.
However, considering that furniture is now low spending priority according to consumer behaviour affected by recession, competitive rivalry is likely to diminish.