IKEA: Dominating the Global Furniture Market

Situational Analysis

The rivalry between existing companies is intense in the global furniture market and key industry players in Europe include Designs Inc, Galiform plc, Wal-Mart Stores Inc., Argos and others. However, Ikea today is the undisputed market leader in the furniture industry discount on the global scale. The threat of new entrants in the industry is low, and the chances of entrance of new competition Ikea is scarce because the current market is saturated and the significant amount of financial investments and experience are necessary to become a shop furniture discount on a global scale. The bargaining power of customers of Ikea is strong, as competition is intense and customers have a wide range of alternative options offered by

Various competitors have adapted or created a similar approach to marketing furniture and fittings and therefore Ikea’s market share is being threatened. Most of Ikea 's rivals are located in Europe where Ikea makes most of its revenues, but the competition is very limited everywhere else due to Ikea’s excellence in cost leadership and differentiation in their products.

Ikea’s main competitors:

Designs Inc,

Galiform plc,

Wal-Mart Stores Inc.,

Promotional recommendation

- Ikea need to upgrade their website in order for customer to view the availability of products /items in all store location.

- In a case where a customer visits Ikea and the requested product is not available Ikea should follow up with customer by calling them or emailing them when the products are