Sarah Salem 07/1982

SWOT Analysis
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Strengths:
1. IKEA has got the lowest price range of products and in the mean

time theyre innovative and functional. 2. IKEA is dominating through a large network where they operate in 40 different countries around the globe. 3. IKEA has got one of the best business models in the industry of furniture.

- Weaknesses:
1. From the main week points regarding IKEA; is the lack of customer service especially when it comes to the Egyptian culture, customers wouldnt find anyone to help them around the store.
2. Cultural and lifestyle differences needing to be reflected in local

product variations / exclusive product lines.

3. In Egypt IKEA entered a market where furnishings were largely of

traditional design, completely at viewed as odds with its offering which centers on encouraging individualism.

- Opportunities:

1. The westernized type of newly born generation, in which theyre the main target audience of IKEA seem to absorb that type of self service furniture products and perceive it as such a creative product. 2. A lot of Egyptians who have been working abroad for many years are well aware of the brand as they have witnessed it abroad especially like Dubai, Kuwait & Qatar.
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Sarah Salem 07/1982 3. The existence of Swedish cuisine in every IKEA store; in which

gives a great opportunity into catering to other market segments.

- Threats:
1. One of the major threats is the political environment across the

region, due to the recent political turmoil thats Egypt is facing that could lead to the fear of foreign investment, and the scarcity of demand and lack of purchasing power for the potential consumers. 2. The major differences in culture between the Egyptians and the Swedish as at some point could not accept the notion that they could buy something like furniture that could be assembled.
3. The potential of imitation of the low cost flat packed furniture

strategy, and the huge competition of adopting the same. Or the huge threat of the new entrances adopting the same ideology of IKEA into the Egyptian market.

Brand Elements, associations and awareness:

Choosing the most appropriate brand elements for awareness and association, in order to build and enrich the brand equity. IKEA in terms of position holds the POD, or the point of difference in which it holds the position of the affordable contemporary designer for the household goods with the affordable price. As for the brand elements IKEA has established great brand equity in terms of Memorability, Meaningfulness, Likability, Transferability, Adaptability & Protectability.

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Sarah Salem 07/1982

From the prospective of memoability, consumers would always enjoy their experience regarding the store design and the distinctive type of self service aspect in which customer can experience every section of the furniture on their own. As for the Meanigfulneess, in which people always relate IKEA with the innovative designs and the type of furniture that can be assembled by self help and the greatest aspect of the Swedish quality. Also, the company is named as an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his hometown (Agunnaryd, in Smland, South Sweden), which at the end forms the word IKEA.

When it comes to the Likability aspect, IKEA is such a successful example in building their brand identity and brand equity through likeness and preference, in which the fact when people come to choose between the various brands of furniture they would consider IKEA at the top of their evoked set.

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