Porter's 5 Forces analysis of Ingvar Kamprad And Ikea Case Analysis

Disclaimer: This is only sample format for the case and not the actual case solution. Place your order on the website to get your own case solution originally solved.

Home >> Hbr >> Ingvar Kamprad And Ikea >> Porter's 5 Forces analysis

Porter's 5 Forces analysis of Ingvar Kamprad And Ikea Case Study Analysis

A Porter's 5 Forces analysis of Ingvar Kamprad And Ikea Case Analysis could be conducted to develop various techniques using the strengths of the business to get opportunities, get rid of weak points and to reduce the threats. It could likewise be used to assess that how certain weaknesses resist particular chances and increase the hazards. The techniques drafted using the Porter's 5 Forces analysis of Ingvar Kamprad And Ikea Case Help are offered as follows;
• Usage of strong worldwide brand name position and financial resources in broadening towards possible markets.
• Special brand experience could help out the business to much better position itself in new markets.
• Resistance in growth in the possible international markets encouraging diversity.
• High prices limits the expansion in various Asian and African nations with low per capita income.
• Strong brand name recognition, non-traditional methods of marketing and the unique brand name experience might be used to reduce the danger from possible clients.
• Stringent appearance policies might caused the customer shift towards Victoria with high social responsibility.
• Restricted target markets might caused a decrease in the overall market share of the business.
These methods might help the business to improvise its market position and be at the leading position in the market.

Financial Analysis

Monetary analysis for Porter's 5 Forces analysis of Ingvar Kamprad And Ikea Case Analysis might be conducted to examine the accessibility of funds to the company that could be used in expansion towards global markets. The monetary position of the business might be assessed by utilizing the data given in the case Exhibition 1. The ratios that might be considered in monetary performance analysis are given up the Table 1 below;

From the above Table 1, it could be seen that the business has an affordable monetary efficiency with a ROE of 7.9% and a high sales development of 18.4%. A 4.3% net profit margin does not appears to be potential and the business needs to put efforts in increasing its profits along with decreasing its functional expenses to increase its earnings margins.

Porter's 5 Forces analysis of Ingvar Kamprad And Ikea Case Help

Segmentation

The division analysis consists of the analysis of different company segments of the company in domestic and the global, markets. Most of the business's Traditional stores are located in United States including above 500 shops in almost each of the state of United States. The company has also an international existence in 8 different nations with its highest number of shops situated in United Kingdom i.e. 21. The companyhas an overall of 54 stores in international markets that is probably the 10% of its shops in the US. It suggests that bulk of the earnings of the company originated from the regional markets. The company is considering to expand its stores into 7 more European and Asian countries. A chart revealing the existence of the company in different international markets is given in the Appendix 2.

Targeting

The business targets its clothing brand to the young, tall and good-looking teens and kids that are thought about to be cool. This targeting policy is responsible for different distinctions in the company associated with its rivals. For instance, the company works with great looking men and women for its shops and follows a rigorous look policy to keep tourist attraction of attractive people towards its shops and supply a special brand experience.

Positioning

The business has positioned its brand name as a high-end brand name targeting only a particular market segment. The company with its non-traditional ways of marketing through designs and representatives posters its brand name image as a high-end clothes brand targeted to the cool and good-looking personalities in society. This market position draws in various elite individuals towards the brand name however it harms the business's position in various neighborhoods focused at the equality in society.

External Analysis

Competitor Analysis

Porter's 5 Forces analysis of Ingvar Kamprad And Ikea Case Analysis deals with a lot of competitors in the market with the existence of various number of rivals in the market. Space is also considered to be a possible competitor in local as well as in international; markets as the company is considering to move in the global markets.

This is sample work and not applicable to real case study. Please place the order on the website to get your own originally done case solution.