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Minimize threats to its business

Categories: BusinessIkea

Threats of the IKEA are divided into three aspects which are social trends, market forces and economic factors. IKEA may not be able to eliminate this threats but they can minimize them into some certain extend. IKEA minimizes threats by the following ways. Firstly, in the aspects of social trends, IKEA is providing a more sustainable online help for customers to be more familiar to the existence of IKEA products. It also help to increase the well known of its brand name.

Moreover, it provides customers some helpful tips and ideas on its website to get their desired items.

In addition, there is from the aspect of market forces. IKEA is now using the advanced technology to produce its products and reconstructing a specialized management in order to against the imitation of the new competitors. IKEA which have the advantage to enjoy economics of scale can lower its products price and the competitors are hardly to compete with such cost savings.

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Thus this puts up high barriers for smaller companies to entering the market. Last but not least, the aspect of economic factors.

IKEA is famous with its products at low price, so it is vital to keep prices as low as possible when the retail sector is depressed especially during economics recession. This pricing strategy targets those limited budgeted consumers to consume its products yet for those who desire better quality and design with higher budgeted can also approach to IKEA. However, IKEA must ensure that it is always recognized as having the lowest prices on the market in the future in order to not lose its own customers yet attract new customers.

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To conclude, IKEA is a well-known global brand with hundreds of stores across the worlds.

However, there are some threats that arise which may influence their business activity. Therefore, IKEA have to develop various plans or solutions against those threats that they are facing on in order to turn them into positive outcome. There are three threats which IKEA facing on, which are social trends, market forces and economic factors. However, IKEA managed to find the suitable solutions for each of it. After those threats have being minimized, IKEA may then be able to sustain its potential market and practices more business activities.

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Minimize threats to its business. (2020, Jun 02). Retrieved from http://studymoose.com/minimize-threats-business-10258-new-essay

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