Essay: IKEA Analysis

By | April 28, 2011

Sample Essay

Introduction:

With a global network of 300 stores in more than 36 countries and a workforce of around 123,000 employees, undoubtedly IKEA is the world’s largest home furnishing retailer.

They are most popularly known as the IKEA systems or IKEA group. IKEA is a privately held international product retailer and their primary business is related with the selling of furniture, and other bathroom and kitchen accessories.  As we have stated above that the company operates in about 36 countries across the globe the majority of its market share is present in the territory of Europe, North America, Asia and Australia. The company’s headquarter is located in Delft, Netherland (Datamonitor, 2010).

General Environment Analysis:

IKEA is a truly global company. Although they largely serve the European and North American market but they also serve the Middle East and Asia Pacific. Therefore the company is highly sensitive to demographic, technological or innovative changes that occur on a global level instead of a particular country or continent (Beer, 2008).

Demographic effects:

Demographics as we know are characteristics of a human population used in marketing or opinion making. Since IKEA serves all the major continents therefore it is affected by different demographic changes.

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