Strengths
Strengths are aspects of a business that add value to its products or services. IKEA’s strengths include : a strong global brand
: a clear vision
: strong concept
: ‘ democratic design’ (the equal balance of function, quality, design and price).
It also has strengths through is production processes, such as in:
- in creased use of renewable materials
- ‘smarter’ use of raw materials
- Long-term partnerships with suppliers economic of scale.
Opportunities
A business uses strengths to again from opportunities. IKEA’S opportunities come from linking its sustainability plans to growing demand from customers for :
- Greener products
- Low price
- Lower water usage and carbon footprint.
IKEA works towards these in many ways, such as by :
- Providing tips and ideas for a sustainable home life on its website
- Aiming for zero landfill waste, reduced wastewater treatment and less water use
- Cutting carbon footprint through less transport and packing
- Showing social responsibility, for example, through its works to support charities.
Weaknesses and threats
A business must know is weaknesses in order to improve and manage them. IKEA needs to consider :
- The size and scale of its business. Ikea’s global activities may make it difficult to control standards.
- The demand for low – cost products. The cost needs to be balanced against quality.
- The need to keep the public and IKEA stakeholders well informed about its environmental activities.
Threats can be managed if the business is aware of them. IKEA has put in place a number of practical solutions to turn a threat into an opportunity. These include :
- Social trends – it gives tips and ideas to customers and employees on reducing their impact on the environment
- Market forces – it makes better use of technology and materials. This reduces costs and benefits the customer and the environment
- Economic factors – low prices appeal to IKEA’s customers especially in tough financial times.
Conclusion
IKEA is a well – known global brand. To keep doing well it must assess internal and external factors that may affect business’performance. It takes advantage of opportunities and manages any threats in a positive way. IKEA unites design, low prices and good use of re sources. Its products, processes and systems all show a responsible approach to people and the environment. IKEA knows that behaving sustainably is good for customers, the planet and its business