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.
One way IKEA measures its strengths is the use of Key Performance Indicators (KPI). KPIs
help IKEA to assess the progress of its vision and long-term goals by setting targets and monitoring
progress towards these. An example of one of IKEA’s KPIs is the percentage of suppliers that are
currently IWAY approved. The IWAY is the IKEA Way of Purchasing Home Furnishing Products. This
guideline defines the social and environmental requirements IKEA expects of its suppliers.
IKEA has strengths right through its production processes:
• Increasing use of renewable materials – IKEA improved its overall use from 71% in 2007
to 75% in 2009.
• ‘Smarter’ use of raw materials – IKEA increased the use of recycled or reclaimed waste
products in energy production across all stores from 84% in 2007 to 90% in 2009.