How Ikea Can Develop Green Technology Marketing Essay

Strength and weakness are internal aspects. Both of them are within the control of the business. Opportunities and threats are examples of external factors. They are outside the control of the business. Examples of external factors are environment, economic situation, social changes or technological advances.

A business can create opportunities and counter threats maximise its strengths and minimize its weaknesses. For instant, one of IKEA's key strengths is its strategic aim to use material as less as possible than it need in the production of each item. Besides, it develops its plans to increase the usage of waste or recycled materials on the production of its own products.

Internal Analysis

Strengths

IKEA's low cost with good quality products maintain its position ahead of its competitors.

IKEA is one of the main producer in furniture industries. A house furnished with IKEA products are less expensive than the one furnished with similar products from other furniture stores. IKEA mainly targeted on middle income family. They are generally more price sensitive who are more concern in their expenditure. Hence, if someone can get a particular furniture at a lower price, they will go for that. Thus, this keeps IKEA its largest competitive advantage ahead of all its competitors.

People mostlikely thinks that price and quality are directly proportional. They think that the higher the price, the better is the quality. Adversely, the lower the price, the lower is the quality. However, IKEA has totally changes this whole idea. Its products have both low price and good quality. For instance, 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. Besides, 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. It emphasize on the usage of waste or recycled materials which are low cost to produce furnitures which are good in its quality. It increases the usage of renewable materials as raw materials.

Its "democratic designs" which balances function, quality, design and price gives IKEA the competitive edge.

IKEA uses cheap labour and build a strong relationship with their suppliers to keep its cost down and gives them a competitive advantage.

IKEA uses cheap labour from foreign countries which are high in population such as Bangladesh, China and India. China really provides really cheap labour so IKEA gets its largest chunk of furniture manufactured from there. Cheap labour keeps the costs down. It allows IKEA to charge their customers at lower price. This helps them to sustain its competitive advantage at both the local and global market.

In addition, IKEA builds a strong relationship with its suppliers over the years. This is one of their biggest advantage from their competitors. This strong relationship with their suppliers gives themselves a continuous supply of materials which saves IKEA from any unwanted hassles or additional costs.

IKEA's research and development team finds ways to modify its products design to save its manufacturing cost.

Starting with the designer Gillis Lundgren, IKEA's research and development team have always research to find ways to save on its products manufacturing costs. Finally, it thinks of the alteration of its product. The aim of the research and development team is to come up with stylish functional designs that will minimizes the manufacturing cost of the product produced. This keeps its product cost down and hence allows for the IKEA's product prices to be much lower than other manufacturers.

IKEA can adapt according to the situation of the market.

IKEA also have the ability to adjust its strategies according to the market situation. For example, this is what happen in the American market. When the time that IKEA was launched in USA, it noticed changes in American culture. To adapt into this changing culture of America, IKEA re-modified its strategies to what is suitable in this cultural shift. As a result, in the period of 4 years, IKEA has earn back double revenues.

IKEA is a global brand.

IKEA products have been well known all over the world. From the European countries to the Asian countries, IKEA could be found everywhere. IKEA has expanded its market all over the world. With its stylish and unique designs with ultimately low price and genuine quality, it has conquered all the parts of the world. So, IKEA has successfully become a global brand. It has a high reputation and also its brand image have contributed to be one of its largest strength.

Opportunities

IKEA can expand its business into food related products

Since Ikea has an in store food court, shoppers can take their time and look around the store without having to leave to get food. Food court helps Ikea to sell more food items, which generates additional money for the company. Besides, IKEA does sell food product in its stores.

IKEA can expand its business into interior designing and home products

IKEA can expand its core business of furniture to a next level. IKEA can place crockery items with the kitchenware furniture. This way when a customer walks through the kitchenware department he or she will surely be attracted to these products and may end up buying some.

IKEA can develop green technology

Customers now are more concerned about the environment. Hence, IKEA chose to produce products that are more environment friendly, which take in less water so the carbon footprint will be minimised. For example, IKEA produces furnitures from the waste or recycled materials which are surely eco-friendly and will not pollute our environment.

IKEA's sales can be boost by product customization

IKEA can ask for opinion from its customers. This will surely bring in some special idea into its business. IKEA can allow customers to order products that are customized with extra charges. They can customized their products whatever they like. This will aid IKEA to attract the particular group of people who loves product customization.