Sustainable Business free essay sample

Approach Strength IKEA began to push for sustainability in the early 90s. IWAY – IKEA code of conduct Strong approach and awareness about sustainable business practices. Up to date Sustainability report, recently published from 2011, includes goals until 2015 ‘Never Ending List’ to become more sustainable 4 Sustainability – Approach Strength cont. Functional products at low prices. Cost leader in the furniture industry. Combined low cost with good quality helps to attract and retain its customers. Maintain long term partnership with its suppliers. Majority of IKEAs furniture is flat-pack, ready to be assembled by the customer. Strong focus on co-worker retention. IKEA Value their employees. 5 Sustainability – Approach Weakness There may be cultural differences in some diversified markets for example US, China and Japan. Size and scale of its business. IKEA’s global activities may make it difficult to control standards. Demand for low-cost products. Costs need to be balanced against quality. 6 Sustainability – Approach Opportunity Growing demand for greener products. We will write a custom essay sample on Sustainable Business or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Due to social trends, IKEA receive tips and ideas on reducing their impact on the environment. Market forces make better use of technology and materials. This reduces costs and benefits the customer and the environment. Greener products also attracts the upper class. Opportunity to focus on high quality. 7 Sustainability – Approach Threat Competitors entering the low price household and furnishings market. IKEA need to reinforce its unique qualities to compete with these. IKEA need to be continuously aware of the possibility of being accused of Greenwashing. Current economic climate has contributed to consumer spending levels slowing down as their disposable income reduces. 8 Competitors Argos Founded in 1973, catalogue retailer, sells everything from a lampshade to a set of golf clubs and are recognised for both value and convenience. Similar concept, catalogue, check availability online, place order and collect from store. Argos’ range of products is more extensive that IKEA. No product experience that IKEA provides – you must rely on the images in the catalogue or on the website. Argos also practice sustainability through their â€Å"basis of good business† strategy. IKEA need to be aware of this. 9 Competitors cont Harvey Norman Harvey Norman was founded in Australia in 1961 and now has almost 300 stores worldwide. There is no mention on their website of sustainable business practices. A catalogue can be viewed online but not ordered and there is no option to order or reserve furniture. Harvey Norman does provide the experience of their products in store. It appears that Harvey Norman is not a major competitor to IKEA but they are in the same industry. 10 Competitors cont Both Argos and Harvey Norman have a number of outlets nationwide which is strength for them. In comparison, IKEA are only located in Dublin and Northern Ireland. IKEA needs to be aware that each country globally has different competitors. 11 Customer In 2011, IKEA carried out a survey on 8500 customer to explore attitudes towards sustainability. Promoting a more sustainable life at home Collecting feedback from customers – â€Å"Brand Capital† survey, to monitor and improve the IKEA concept and measure customer satisfaction in each market. Marketing Communication IKEA store; primary medium for communicating and presenting its range and concept. Catalogue; 38 different editions Website, including detailed information about sustainability approach Facebook; for individual stores IKEA Family customer club Engaging customers through campaigns and ctivities 13 Recommendations for Future Developments Sustainability report; continue to keep up to date Keep the public and IKEA stakeholders well informed about its environmental activities. IKEA continuously need to be aware of the threat of green washing. Provide more information through direct marketing, e. g. leaflets, brochures. No information about sustainable approach in catalogue. 14 Thank you for your attention! http://www. youtube. com/watch? v=4mqmKEurrxc 15