(Answered) : IKEA: An external analysis which identifies opportunities and threats: Assess the competitive forces facing the company?

IKEA: An external analysis which identifies opportunities and threats: Assess the competitive forces facing the company?

Expert Answer

Opportunities:

There is increase in online sale and market
IKEA is expanding to new geographies where market in untapped
The company can develop products to capture young and college market
Threats:

Increasing competition from Wal-mart, Decor etc.
The economic condition in bleak and thus low spending power
Slowdown of new product buyer
The competitive forces are:

Increasing use of e-books decreases demand for book shelf
Many direct competitors like Argos, Ashley furniture etc. along with online retailers like Amazon
There are lot of local players which offer products at much lower rate

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