SWOT analysis and sustainable business planning An IKEA case study
Page 4: Opportunities
A business uses its strengths to take advantage of the opportunities that arise. IKEA believes that its environmentally focused business conduct will result in good returns even in a price sensitive market. As the company states:
'There is a true business potential for IKEA in providing solutions that enable customers to live a more sustainable life at home. IKEA is developing effective solutions for customers in order to support them recycling or reusing used products, aiming at no products ending up at landfill and the recycled materials used in producing new IKEA products.'
Some of the opportunities that IKEA takes advantage of through its sustainability agenda are:
a growing demand for greener products
a growing demand for low priced products. Trends in the current financial climate may result in consumers trading down from more expensive stores
demand for reduced water usage and lower carbon footprints.
IKEA has a number of areas of focus to its work with sustainability, each of which it supports in various ways:
Solutions for a sustainable life at home IKEA gives online tips and ideas for this.
Sustainable use of resources. IKEA aims for zero waste to landfill, wastewater treatment and programmes to reduce its use of water.
Reducing carbon footprint. IKEA aims to reduce energy use, use more renewable energy, cut its use of air transport and reduce packaging. Its green transport initiative includes an aim to reduce business flights by 20% in 2010 and 60% by 2015.
Developing social responsibility. IKEA's policy includes support for charities such as the World Wildlife Fund, UNICEF and Save the Children.
Being open with all its stakeholders. This involves building trust through good communication with consumers, co-workers, key opinion formers and the press. Being sustainable is a central part of IKEA's image.