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1. IKEA's greatest strength is its clear vision, which is to provide value to its consumers regardless of market situations. This has resulted in a clear and well-defined business strategy and retailing method that is innovative in its simplicity, deadly in its competition targeting, and effective in its positioning.
2. Another significant asset of the company is its straightforward concept, which converts into a variety of items that consumers can assemble themselves, resulting in massive cost savings.
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3. Given that IKEA operates in a number of nations throughout the world, it is a large-scale business, making it challenging to maintain consistent standards across sites. Though the organisation makes every effort to ensure consistent quality, quality control that is reproducible and scalable is a major flaw.
4. IKEA's operations raise environmental issues, and the firm has difficulty explaining and expressing its environmental policies to customers, shareholders.
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5. With its "green" business model, the company has a big possibility to attract clients who are interested in purchasing such items. The rise of the ethical consumer, or the "Ethical Chic" buying process, which means that buyers would want to buy ecologically conscious products, is an opportunity waiting to be exploited for the company.
6. The company's development into new markets and underdeveloped countries, where it has an untapped client base, presents another possibility.
7. IKEA's low-cost business strategy has been copied and duplicated by competitors, implying that the corporation must continually innovate to stay ahead of the pack. For example, some regional and local businesses have jumped on the DIY bandwagon and are focused on cost-cutting, forcing IKEA to develop new methods in order to remain nimble and adaptable.
8. With the advent of the internet and online shopping, DIY as a key driver of strategic success is no longer IKEA's sole USP or Unique Selling Proposition. And the proliferation of online retailers who can offer even lower costs because they don't have a physical presence means that they are closing in on IKEA.
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