Understanding the O-Opportunities in SWOT Analysis in Product Management

Opportunities are favorable external factors that could give a company a competitive advantage.

In this segment, you will learn about the opportunities for IKEA.

In this video, you learned that opportunities are the chances to capitalize on the marketplace.

Questions to ask:

1. How are consumer tastes changing?

2. How are industry regulations changing?

3. How could the company be more profitable or efficient?

4. Could the company enter an adjacent market with its current products or services?

5. What are the new geographies or customer segments that the company could attract?

Opportunities for IKEA:

• International expansion (e.g., 90% of IKEA’s sales are from OECD countries, and 70% in Europe)

• Advancements in material science and synthetic biology (e.g., non-wood materials for furniture)

• Consumer trends (e.g., WFH office, van life, minimalism, co-living, renovations during the pandemic)

Now that you have a clear idea of the strengths, weaknesses, and opportunities of IKEA, let’s focus on the threats before IKEA and close your SWOT analysis.