IKEA SWOT and Competitive Analysis

IKEA SWOT and Competitive Analysis (S)trengths Strength includes characteristics within the organization that adds value to the business and resulting in the ultimate success of organization. These factors are usually cited as skilled management, manufacturing facilities available and good profit product line available in business. (Finlay, 2000) IKEA has strong internationally brand name recognition. IKEAs branding attracts the major demographic customers. Business model of IKEA is unique in its construction as it has no direct competitions on like for like basis. IKEAs products offer values to customer by delivering low price and innovative products. IKEA carries degree of specialist skills and knowledge within key production areas. (Edvardsson Enquist, 2009; Lewis, 2005; Torekull Kamprad, 1999) (W)eaknesses Weaknesses address the internal factors within the business. Those factors that prevent the achievement of successful projects are mainly barriers in communication channels, insufficient resources and conflicts between departments. (Finlay, 2000) IKEA promotes the low pricing model but services to customers are not satisfactory. Retention of customer focuses that customers should be happy fully with the business services. To repeat business with the same customer base IKEA has to work out on its services that are given to customers. Practices of ecommerce have become necessary for businesses to compete with modern technological world. IKEA needs to adopt such practices for the efficiency of its business. (Ikea, 1995; Levine, 2007) (O)pportunities Opportunity factor in SWOT analysis deals with the external elements that will help the business in the completion of successful projects. Strong network of vendors, healthy relationships with suppliers and prevailing good market conditions these all add values to the project. (Finlay, 2000) Opportunity available to IKEA is growing demand for green products and growing demand for low price products by the customers. Due to liquidity crunch and high inflation demand for low price products is increasing. IKEA is moving towards the global status because of the development of Eastern and European models. (Edvardsson Enquist, 2009; Lewis, 2005; Torekull Kamprad, 1999) (T)hreats Final factor of SWOT analysis is threat. Threat represents the external factors that can threaten the success of project. Threat is the negative public image towards business, week vendor relationship, inadequate resources and unavailability of market for the final product. (Finlay, 2000) Various competitors are entering in market and offering the low cost household and furniture products and causing the threat to IKEAs business. Due to recession in economy, trend of consumers spending and disposal of income has reduced. First time buying pattern by consumers is also threat as consumers spend less when they enter in the market. (Ikea, 1995; Levine, 2007) Context and Key issues Wal-Mart is indirect competitor of IKEA. Wal-Mart runs a chain of large stores whereas IKEA deals only with the home furnishing. Wal-Mart offers extensive products and home furnishing is from one of its product lines. Wal-Mart is biggest public company while IKEA is private company. Wal-Mart has world recognized retail brands as IKEAs. IKEA has no direct competitors but Wal-Mart has to compete with the direct competitors also. IKEA focuses on the low priced product strategy which will affect Wal-Mart as more customers are moving towards IKEA for home furnishing. Wal-Mart strategy is focused on human resource management and development and IKEA strategy gives emphasize to low price products to customer. Services given to customers by IKEA are not up to the mark. Wal-Mart can grab customers form IKEA by focusing on the services and by giving values to customer. Retention of customer is possible when their desires are fulfilled along with these desires customer demands good services from the company. Those companies that are providing good customer service are becoming successful. Wal-Mart by using the information technology to assist its logistic systems can precede the IKEA. Information technology can become the core competence of Wal-Mart and by using this core competency Wal-Mart can excel IKEA. (Lewis, 2005; Maon et al., 2007; Tong Tong, 2006) IKEA can compete vigorously with Wal-Mart by fulfilling the demand of customers. Demands for greener products, demands for low priced products and demand from low carbon footprints are increasingly. IKEA by serving these demands can gain the opportunity to become successful and strong competitor of Wal-Mart in home furnishing product line. IKEA by developing the Eastern and European models can increase its market shares and Wal-Mart profitability can decline. By providing customer with low priced products IKEA can attract the customer in this economic recession period where customers are not spending their income. By offering the low priced products to the customer Wal-Mart can do extremely well with IKEA. Due to inflation and down trend in the buying pattern of customers this strategy can gain success to the company. To overcome the threat of low buying pattern of consumer Wal-Mart can take better measures than IKEA as Wal-Mart is running huge retail business than IKEA. IKEA is providing only home furnishing products. It has more skills and knowledge as it is dealing only with this product line and also IKEA is providing innovative and less price products. IKEA strengths have increased from Wal-Mart in home furnishing products because it is focusing only on this product line. (Lewis, 2005; Maon et al., 2007; Tong Tong, 2006) Conclusion IKEA and Wal-Mart differ in number of ways. For the constructive comparison market segmentation and target market for both IKEA and Wal-Mart has to be considered. Target market of IKEA is only consumers of home furnishing while Wal-Mart deals with huge target market. Influence of IKEA on Wal-Mart is less because Wal-Mart is running huge industry. Market segmentation of Wal-Mart is different from IKEA like Wal-Mart focuses on different demographic segmentation, Psychographics and life style segmentation and behavioural segmentation. Target market of IKEA is different as it is only providing products to consumers who are keen in home furnishing whereas home furnishing is only the niche of Wal-Mart. Strategies of IKEA and Wal-Mart are also dissimilar. IKEA focuses on the low priced and innovative products to customer whereas Wal-Mart focuses on the human management and development of human skills. IKEA has no direct competitors so it does not directly influence other businesses through its strengths and weaknesses. Healthy competition is always done on one to one basis. Weakness of IKEA is also that it has no direct competitor. Presence of direct competitor boosts the company performance. References Edvardsson, B. Enquist, B. 2009, Values-based service for sustainable business : lessons from IKEA, Routledge, London; New York. Finlay, P. 2000, Strategic management : an introduction to business and corporate level strategy, Financial Times Prentice Hall, Harlow. Ikea, A. S. 1995, Democratic design : a book about form, function and pricethe 3 dimensions at IKEA, IKEA, Almhult, Sweden. Levine, J. 2007, Forbes Life Billionaires Ikea, Forbes., pp. 328-. Lewis, E. 2005, Great Ikea! : a brand for all the people, Great brand stories, Cyan, London. Maon, F., Swaen, V., Lindgreen, A. University of Hull. Business, S. 2007, Corporate social responsibility at IKEA : commitment and communication, Hull University Business School, [S.l.]. Tong, C. H. Tong, L. I. 2006, Exploring the Conerstones of Walmarts Succes and Competitiveness, Competitiveness review : CR., 16 (2), pp. 143-9. Torekull, B. Kamprad, I. 1999, Leading by design : the IKEA story, HarperBusiness, New York.

Query letter

Dear Publisher,  Illustration has always been my passion since the last 15 years of my life and now I am at a point from where I can introduce my illustration book, â€Å"Cultural Diversity†, to the readers all across the Globe. My book, â€Å"Cultural Diversity† offers a collective view of the world, in which it highlights the greatness of it. I have traveled extensively across the continents to create my book from my direct experience. Thus â€Å"Cultural Diversity† has become a depiction of wonderful collage of various cultures of Europe, Asia, America and Africa, while identifying the effects of cultures over civilization.I love to communicate with the world with my paintings and especially I love to put forth a message through them that world is much beautiful than we can anticipate – that irrespective of situations there is always the ray of hope, love, amity and fraternity – and I have sincerely tried to show that these universal positive q ualities unify the various civilizations across the globe.These positive qualities that I could observe among all the places I visited, have remained my guiding engine behind the creation of â€Å"Cultural Diversity† – they culminated into a wonderful package of emotion, which then converted them into painting. That package of emotion, however, contains various shades in it – like an intense desire to the hopeless winning hopes or the youths blooming to their best. Thus there are many paintings that contain elements of inspiration for all – which would touch the human mind and tell them to do their bit to come out of the shell of despair and frustration. Pictures tell more than 1000 words, so I believe and that has made me more confident about imbibing the positivism in the readers' mind through my paintings.I believe my proposed book would open a new horizon of ideas regarding how people can find the main chord of unity that exists in every part of the w orld with same qualities known to everyone. My book â€Å"Cultural Diversity† thus, would facilitate its readers to discover that common chord and rediscover the joy of togetherness and fraternity. In the wake of global disharmony, I believe this book would serve a great social cause as well.From a simple perspective, this book would communicate with its readers by two ways – by its paintings/illustrations and by short commentaries on them. This would greatly help a reader to get a comprehensive grasp over the nuances of each culture presented in the book. This brings forth the issue of educational value of this book – which encompasses all the segments of the readers like parents, teachers and researchers, besides the student community.Though â€Å"Cultural Diversity† has been accompanied by Mellitus language, I am ready to present it in other languages too – because the simplicity of the content of this book would pose no hindrance at all their c onversion into any other language. As for the language of the picture, it would appeal the same way to anyone belonging to any culture of language. And it is my paintings that dominates this book, each carrying one or two paragraphs of writing with them.In all, the proposed book   â€Å"Cultural Diversity† contains all my own essences of education, experience, creativity, imagination and utmost passion to serve the world in my own humble way – where the world would stop by and happily think of the joy of togetherness, of wonderful unity in diversity. Thus I would like you to be the bridge between my dream and the reality by being the publisher of â€Å"Cultural Diversity†Looking forward to hearing from youDETAILS OF THE PROJECTI. OVERVIEW OF THE BOOK: â€Å"CULTURAL DIVERSITY†Each painting of the book has evolved out of a particular culture, and thus contains specific elements of that culture to help the reader/viewer identify that. It took a painstakin g amount of research to find out the appropriate characters, social events or other elements that could highlight the uniqueness of a culture. I'm sure, the incorporation of different characters at every page that I have made with special emphasis on remembering them for longer period, would keep its readers engaged from its first page to the last page. â€Å"Cultural Diversity† would also serve as a wonderful documentary of a time that is surely in transition in the wake of globalization – with the advent of Internet and virtual world, the little nuances and customs spread all across the globe among different communities are now becoming the part of history – a good slice of which has been kept alive in my proposed book.This book demonstrates cultural diversity among 19 nationalities with strong cultural features. Between its folds, it holds the message that the world should be peaceful with friendly people living together; no matter what language they speak of what are their other ways of living. This book is an account of my first-hand experience about all the 19 places and their cultures, where I researched painstakingly to gather all the details like traditional costumes, skin colors, facial features, life style, and the styles of their architecture. 19 pieces of painting in the book represent 19 nations, while the last painting combines the features of all 19 nations to form a unique painting to substantiate the final message – â€Å"No matter we differ in color, race or nationality, all of us are the parts of one single journey of civilization on this earth.†The nationalities chosen for the project are: British, Chinese, Japanese, Italian, French, Korean, Thai, Indian, Hindu, African, German, Egyptian, Vietnamese, Greek, Filipino, Turkish, Dutch, Icelander, and Russian. Each painting of them clearly highlights the unique feature of a particular nation, with exaggerated costumes, emphasized facial features and stylized characters. My own imagination too has supplemented the compositions, besides an intense use of my knowledge and skill of painting that I mastered through extensive schooling and practice – in fact this book is the end product of my tenure as a student.II. CATAGORY/NATURE OF THE BOOKThis books belongs to the category of Painting and Illustration. Three examples of other books, viz., â€Å"Jimmy's Books of Paintings†, â€Å"Moster Goose† and â€Å"The Adventures of Abdi† from this category would explain better:1. â€Å"Jimmy's Books of Paintings†: Jiminy he is a famous artist in Taiwan and Japan with lots of titles to his credit. Most of his book have become popular, of which a good many cheater has been made for toy or gift goods. His target readership aims readers from the age group 12 onwards, which would be my target tool. Some of his books have been used as educational items for the younger generations, as Jimmy mostly highlighted the subject à ¢â‚¬ËœLove' in his books.   Accordingly, my book highlights the topic â€Å"Fraternity†.How My Book Differs from Jimmy: Jiminy’s artwork has solid condense smooth contrast, while my art has more contrast impact, intending to drag more of the readers' attention. This is in complete contrast with Jimmy's style. While Jimmy's book speaks about Love, my book wants to establish the power of fraternity – which holds a much larger canvas and much significance in topicality under the present context of deteriorating state of global harmony. Therefore my book promises to attract a larger readership across the globe.2. â€Å"Moster goose†: This is another kind of illustration book, which simply tells some stories with simple painting. This book targets little children’s' market. The illustrations and writings in it are very simple and is not for the readership above 15 at the most.How it Differs from My Book: My book is very complex in a sense that it cont ains something more than an illustration. It speaks its story through the paintings primarily. However, the elements incorporated in the paintings would definitely rouse the interest among children as well. This way my book is miles ahead in the range of possible readership, with its promise to become a part of the growth of the children all across the globe.3. â€Å"The Adventures of Abdi†:   This book uses live sources as its basic design where it tells a complete story with picture.Its Difference with My Book: My book covers more elements than live sources, and instead of telling a single story, it highlights different aspects of different communities across the globe and in the end unifies them in a single painting to put forth the message of fraternity. I have used few paragraph to inform about the communities mostly, thereby leaving much scope for the readers to imagine on their own, while letting the paintings interact with them. Thus my book stands apart in style an d technique from â€Å"The Adventures of Abdi† and also promises to gather much larger readership than it.III. AUTHOR'S BACKGROUNDI have been learning Art for about ten years. There were many reasons why I chose to be an Artist as my lifetime career. While painting a piece of artwork, other than fulfilling the happiness inside of me, it also helps me to put the painful memories of my real life aside. On top of that, my family background took the major role of why I want to be an Artist.Since my parents got divorced before I was born, my mother raised me. While I grew up without having a father by my side, my mother became the most important role in my life. But on my age of fourteen, my mother was confirmed having rectum cancer. That was the most frightening moment of my life. What if she left me and won’t be there for me anymore?Luckily, my mother didn’t leave me. After she got healed, she said to me, â€Å"You must learn something in professional skill. In ca se I must leave you some day, you must have the ability to support your own life in this challenging world.† I love painting since I was little, so I thought maybe I have some talents within this field. But when I decided to join the world of art, my mother had strongly disapproved that idea. She opined that it is hard for an artist to get a stable job in Taiwan, my native the place.Passion overruled the suggestion, as painting happens to be my life. I never feel tired of creating artworks. Fortunately, she listened to my appeal and finally allowed me to choose what I want to be.I spent most of my time on painting. I enjoyed and treasured each of my chances of learning in school and that definitely has improved my painting skill, knowledge of art, composition, color theory and creativity. Initially it was more of a challenge took charge of me, as I wanted to prove my worth as an artist to my mother – but in the end it turned out to be one of pure love for art and nothin g else! Now my hard work is not just aimed to fulfill my mother's dream, but also to fulfill the promises showing in my art.A lot of people use different ways to recall their memories and experiences. For example, writing dairies, recording voices, or taking pictures. My way of recalling my memories and experiences is to paint down what I saw. I have been living in America for five years. America is a very interesting country since it is an international place where people came from different parts of the world. Most of the people I’ve met in this country have actually moved here from another place. With such friends and schoolmates living close by, each of us contribute to form a wonderful global culture here, which perhaps also influenced my thought process to go in creating a book with the concept of global fraternity.IV. TARGET MARKET SEGMENTMy target market segment covers the following features:І) It aims to cater to the market segment between the range of 12 years a nd above.ІІ) It aims to cater to the global audienceІІІ) It aims to keep the price range within the reach of lower or lower middle income group.V. IDEAS ABOUT PROMOTIONThere will be online stores under my personal web site and I will contact the online bookstores operating from Taiwan and US, who would carry promotional campaign with excerpts of my book and downloadable screensavers made with one or two of my paintings. Alongside they would provide easy online retail outlets. A promotional video can also be made with the excerpts of the book. These will be joined by traditional advertisements on the magazines and on the websites.I will open a web blog with the description of the book and promotional literature for it. Besides that I will hold small meetings with friends and peers to hold lecture sessions with the USP of the book. Alongside, I will promote my book with some small giveaways like key holder, small notebooks, etc., all designed with elements taken fr om my book.VI. PRODUCT SPECIFICATIONi) Book Size: 16Ãâ€"12 inch total 40 page including coversii) Printing: Profession Print will be done in China. Digital file request for example print, most example print will be free if we order the amount of print around 5000-10000 books, full color print. Selection of different paper and book cover paper material will change the cost accordingly. This estimate has been received from a printing farm based at Shenzhen city, China, over international phone quote, which puts the basic price range for 5000 prints (hard cover book, double side saint gloss finish on two-pound paper) cost around $2-$3 per book, excluding shipping cost.І) Shipping Cost and Delivery Time: It is about $600, that would   take around 3 week to US.ІV) Estimated Final Cost: Around $4 per book.V) Estimated Sale Price: I will set my book sale price around $16.99 for US, $10 for Asia such as China, Taiwan, Hong Kong.Ends

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Evaluate the Contribution of ‘Attribution Theories’ and...

Evaluate the contribution of ‘attribution theories’ and related research in helping us to understand the way in which people perceive and explain their social environment. The key concepts behind the idea of attribution theories is to question what was the cause why you chose it and what information led you there. [1]Heider in his description tells us that we make judgements based on either internal/disposition causes, which are responsible for the motivating behaviour located in the persons personality or his apparent mood or on external situational causes which are caused by the environment. External attribution tells how the person acts in a situation outside the persons control whereas internal attribution is telling us†¦show more content†¦In the controlled condition identifications of behaviour was based on the actual conversations rather than the recordings. [20]The statistical analysis showed that actors tended to favour situational explanations of their behaviour and observers to favour dispositional explanations. This provides evidence for fundamental attribution error. Storms found the actors when in controlled situations moved more towards the observers identification than their own, demonstrating the actor/observer affect. [21]Thus Storms experiment supports both a perceptual explanation of FAE and AOE. This is evident because the change in the perceptual perspective led to a change in casual explanations. Other explanations of ‘Bias’ is that people tend to ignore certain information, known as [22]‘perceptual salience’. [23]For the actor the situation is seen as perceptual salience thus he or she sees’s causes of their behaviour in the situation rather than being internal. Another explanation is that of ‘self serving bias’, people identify problems they have been having due to external causes and therefore not their fault whereas their successes are attributed to internal causes. [24]There is an empirical description of this tendency in Lau and Russell’s ‘attribution in the sports pages’. [25]This stimulus is taken from media r eports rather than construction vignettes. The data collected was qualitative using relative themes in newspaper articles. [26]This method became known asShow MoreRelatedHow Social Schemas Theory and Related Research Contributes to Our Understanding of the Way in Which People Evaluate and React in Their Social Environment1525 Words   |  7 PagesHow social schemas theory and related research contributes to our understanding of the way in which people evaluate and react in their social environment Cognitive representations of social situations are referred to as schemas. 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