Research Paper on Walmart and IKEA

Paper Type:  Research paper
Pages:  4
Wordcount:  1081 Words
Date:  2022-12-07


Walmart, an American department store has a well-documented history, and still, it has remained to be among the key stores that influence the new retailers regarding the profit margin and efficiency of operation. Technology has over the years played a crucial role in the global expansion of the firm consequently placing the firm on the top of every shopper's list. Walmart has successfully managed to make shopping easier for customers through technological applications. However, the organization faces competitions from other corporations that aim at dominating the industry. IKEA is one of the major Walmart competitors that I would consider working for. The organization was founded in the year 1943 and it has over 370 stores in more than fifty countries; however, the majority of its stores are located in Europe (Edvardsson & Enquist, 2008). IKEA is largely common in the United States and in Germany, the sales in the two countries contribute to eighteen percent of the company's income. Operational in both the wholesale and retail industry, the organization added twelve more stores in the year 2016 and as a result, received over eight hundred million store visits in the same year (Novicevic et al., 2012). The increase in the customer's visits was probably due to the increase in the variety of products offered

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Board of Directors of Walmart and IKEA

In both IKEA and Walmart, there is a well-organized structure from the management down to the workers. However, the competitiveness of IKEA arises from the board of directors that understands the vision and mission of the organization as well as that of the workers at the lower level management (Novicevic et al., 2012). While the major decision-making processes in Walmart arise from the top level management, in IKEA, a major decision is made through the board. The above case, therefore, makes it favorable for the workers and even for the customers to air their demands from the organization. In Walmart, the board is integrated into the management systems and this, therefore, makes it even efficient as the information raised can reach the entire levels of the organization almost at the same time making it much easier for workers to air their grievances as compared to the system in IKEA. Therefore, even though IKEA is a great competitor that can even overtake Walmart in terms of profits, Walmart remains a good fit for me.

Impacts of IKEA Mission, Vision and Primary Stakeholders

IKEA's vision and mission is to create a perfect daily life for people across the world. The business supports the above idea by offering a different range of well-designed and functional furniture products at affordable prices (Novicevic et al., 2012). The company's vision and mission attract many clients who then develop trust and confidence in fairly charged products. With the increase in the number of customers spread across different countries, the organization tends to gain competitive advantage making it become a successful employer. Since the mission geared towards improving the life of every organization's stakeholder, the organization is slowly gaining a competitive advantage in the industry.

SWOT Analysis of IKEA


IKEA designers are involved in the creation of stylish as well as the newly designed affordable products. The products are designed for easy assembly and transportation. In stores, the organization displays complete products while on delivery, the products come in pieces (Edvardsson & Enquist, 2008).


IKEA has experiences with the bad press. Additionally, there are instances when employees have complained about poor treatment by the management. Besides, their brands have faced ridicule when it comes to the advertisement techniques specifically in non-western countries. The organization faces the worst offense that arises injuries that children sustain from their products.


IKEA has limited opportunities as it operates only in 30 countries; this is extremely low compared to its competitors in the same industry. Additionally, IKEA products barely feature in developing countries.


IKEA faces threats of fast competition from other organizations that offer furniture products. With organizations such as Walmart that offer inexpensive products, IKEA faces threats of elimination in the markets.

Strategy for the Company to Capitalize on Its Strengths and Opportunities, and Minimize Its Weaknesses and Threats

IKEA organization can capitalize on its strength and opportunities and minimize weaknesses and threats. First, the management should engage in the expansion of their stores to different countries specifically in the developing countries where there is a demand for goods. Additionally, the management should focus on proving the best working conditions for the workers, this should include good salaries and treatment with dignity. Finally, improving the quality of the products will be the major strategy of eliminating threats of elimination from other competitors.

Types of Strategies the Firm May Use To Enhance

Competitiveness and Profitability

IKEA needs to need to improvise on their strategies when it comes to market penetration and increases or improve on research and development (Harapiak, 2013). They need to re-create their brands such as packaging and forward integration. Additionally, they need to identify the needs of customers. Finally, there is the need of the organization to improve its marketing activities. In other words, they need to formulate new marketing strategies. The organization should dwell on the planning processes aimed at increasing sales.

Communications Plan the Company Could Use

Because IKEA has various types of stakeholders and customers which needs different details and levels of interaction or communication, developing various levels of communication will be the best approach or strategy (Harapiak, 2013). Communication needs to be conducted both informally and formally. While communicating with the customers and the clients, communication should involve formal news briefs and newsletters. Additionally, there is also the need to enhance social media communication so as to reach more clients.

Efforts to be More Responsible

IKEA is trying to be more responsible through the establishment of ethical standards; this is meant to ensure that workers, clients, and all the stakeholders are treated with the dignity that they deserve (Harapiak, 2013). IKEA provides employment to over six thousand people and the headquarter is based in Pennsylvania. As a result of the introduction of IKEA, Walmart has not been able to enter into the sales of furniture and therefore, it is regarded as one of the topmost Walmart competitors in the global market.


Edvardsson, B., & Enquist, B. (2008). Values-based service for sustainable business: lessons from IKEA. Routledge.Harapiak, C. (2013). IKEA's International Expansion.

Novicevic, M. M., Morf, D., Evans, M., Sanders, L., Sun, W., & Cecil, C. (2012). Adapting competencies for emerging markets: The case of IKEA's entry into China. Journal of Applied Management and Entrepreneurship, 17(2), 4.

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