A business can create opportunities and counter threats by making the most of its strengths
and addressing its weaknesses. For example, one of IKEA’s key strengths is its strategic aim to
use no more material than necessary in the production of each item. In addition, it develops
its product plans to increase its use of waste or recycled materials.
• One particular table, the NORDEN table, uses knotty birch wood. The knots in this wood
usually mean it is rejected by other retailers and manufacturers as unsuitable for use.
However, IKEA has made the knots part of its design feature.
• OGLA chairs are made using wood waste from saw mills and LACK tables use a
‘sandwich’ of stiff card between wood sheets to reduce the amount of solid wood needed.
Strengths
Strengths could include a company’s specialist marketing expertise or its location. They are
any aspect of the business that adds value to its product or service. IKEA’s strengths include:
• a strong global brand which attracts key consumer groups. It promises the same quality
and range worldwide
• its vision – ‘to create a better everyday life for many people’
• a strong concept – based on offering a wide range of well designed, functional products
at low prices
• a ‘democratic design’ – reaching an ideal balance between function, quality, design and
price. IKEA’s ‘Cost Consciousness’ means that low prices are taken into account when
each product is designed from the outset.
These strengths contribute to IKEA being able to attract and retain its customers.