Strengths
Customer knowledge – IKEA is a trendsetter, despite low priced goods
Constantly using innovations to drive costs down – e.g. efficiency through innovative packaging solutions and self-assembling
Supply chain integration – economies of scale and long lasting supplier relations
Diversified product portfolio (e.g. food real estate beyond furniture and everything else that is needed for customers’ homes)
Brand reputation and market presence
Weaknesses
Negative publicity, especially for employee treatment, product quality, unethical lobbying practices, etc.
Decreasing quality of products and low product lifespan
Standard products – the product portfolio is almost 100% the same in every store and every country
Opportunities
Further expansion into untapped markets, especially developing economies
Growing online sales
Expansion and advertising into college student market
Expansion to growing grocery market and other product segments of the IKEA portfolio
Threats
Intensifying low-price competition from companies like Wal-Mart
Growth of average consumer income on the one hand
Recessions and economic crises on the other