Write 6 pages with APA style on IKEA Marketing Analysis. The company develops its own furniture design and control of certain types of providers. IKEA is a major developer with experience, i.e., inves

Write 6 pages with APA style on IKEA Marketing Analysis. The company develops its own furniture design and control of certain types of providers. IKEA is a major developer with experience, i.e., invests heavily in the construction of the largest hypermarkets (IKEA. 2011). IKEA uses a new method of production and distribution of furniture, which consists in the fact that the furniture is manufactured as a separate element, and then developing the design business organization, and the user performs assemble furniture. With its stores in the country and saving on rent, IKEA keeps the price low. All stores have a mother and child room, children’s room, which is very convenient for women with children because 60% of customers visiting IKEA are women. Stores are based on the type of the labyrinth: from input to output is one road that passes through all departments. Buyers have the opportunity to jump over several departments, but not always. In addition, a unique corporate spirit IKEA is also a competitive advantage for the company, which tends to look more original than its competitors and to avoid problems (IKEA. 2011).

Technological condition: Now there are many new and innovative technological furniture manufacturing machines and design equipment are available. With the help of advanced technologies, IKEA is able to enhance its products and attain a competitive edge over the competitors (Suarez, 2006).

Threats of New Entrants: As it is noticed that in this industry, there are no barriers to entry but competition intensity may drive away from the new entrants. In order to compete in the industry with big brands like IKEA, newcomers must invest a great amount in the business, encourage greater associations with potential customers, and most important is to select competitive and suitable outlet locations. Therefore, the threat of new entrants is high due to fewer regulations, but this threat is not immediate because of a greater level of competition in the industry (Hitt, Duane Ireland & Robert Hoskisson, 2012).

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