Foreign investment restrictions-Companies as charity for tax avoidance-VAT increase to 20%-Globalization has eased import rules. -Government regulation climate change act 2008)| Ref13119| ECONOMICAL-Economic crisis in North America. -Rising raw material and transport cost in 2009-Low spending power due to recession. Recession in Russia-High import tax in japan| Ref2,34677| SOCIAL-Requirements on wood supplier-Brand image-Does not accept child labour-Women empowerment-Forest Law| Ref2699| TECHNOLOGY-Internet retailing-Established delivery infrastructure-Recreational facilities in stores-Iphone applications-Reusable wood/wood recycling| Ref66824| ECOLOGICAL-Charging for plastic bags-Recyclable energy-Efficient transport of products and people-Climate projects with-Energy saving sources use| Ref10999| LEGAL-Foreign investment restrictions -EU legislation on chemicals. Forest law enforcement-EU directive ban use of methyl bromide| Ref192530| Table1: PESTEL ANALYSIS

BUYER POWER(14,38)| THREATS OF NEW ENTRY(14,38)| THREATS OF SUBSTITUTES(14,38)| SUPPLIER POWER(14,38)| COMPETITIVE RIVALRY(14,38)| -Low-High buyer volume-Brand identity-Low threat of forward integration -Low price of product-Low threat of backward integration | -High-Switching cost low-No likelihood of retaliation-Access to distribution channel-Government policy barriers entries| -Low-Customers are loyal to IKEA-Close customer relation-Switching cost low for customer| -Lows-Wide range of supplier-Undifferentiated high valued product-Suppliers grow with IKEA-Low threat of forward integration| -High-Market leader-Low switching cost-High fixed cost-Exit barrier high-Competitive growth strategy| Table2: PORTER’S FIVE FORCES Table3: ANSOFF’S MATRIX | EXISTING PRODUCTS| NEW PRODUCTS| |

EXISTINGMARKETS| MARKET PENETRATION -IKEA loyalty card-IKEA mobile loyalty program-IKEA family program-Modern, innovative design-Innovative advertising-Up to 75% off on selected products| Ref101610101710| PRODUCT DEVELOPMENT-Continuous supply of new products-It offers its new range of products to customers all over the world as a Swedish style product. -IKEA family mobile| Ref101031| NEW MARKETS| MARKET DEVELOPMENT-Moving into Asia-Green power market development-Good term with trade unions, stakeholders and partners| Ref101010| DIVERSIFICATION-Moving into Asia in joint venture -IPhone application-Ikea to move into specialty grocery market-Ikea has started selling Swedish dishes| Ref10101819|

Inbound Logistics| Operation| Outbound Logistics| Marketing and sales| Service| – Raw materials suppliers-Flat packaging-Products part suppliers-Food suppliers| -Product assembly- Product testing-Packaging suppliers products-displaying product in the showroom| – Warehousing-Packs to different stores- Products well presented-Delivery goods to customers| -Catalogue-Culture adopted promotions- Internet sales-Staffs presents in store. -Television Advertisement| -Delivery Service-Return Policy -Assembly service-Kitchen Installation-Home Furnishing Advice| Firm Infrastructure | Human Resource Management| Technological Development| Procurement| 1. Customer focused specific middle class segment. 2. Finding new raw material and. manufacturing suppliers 3. Partnerships with WWF, CSR, UNICEF | 1.

Employee relations and management 2. Recruitment, training and development 3. Employee benefits 3. Salary package 4. Payroll process | 1. Website maintenance and design; online payment process 2.

Security systems and sales reporting system advances. 3. Technological innovations in manufacturing and transportation | 1. Centralised design team (3 years ahead) 2. Market research team (consolidating and analysing sales info sent by cash tills from the stores) 3. Product adaptation 4. Employee recruitment 5. Warehousing team |

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