Jysk SWOT analysis of the Chinese Market

Jysk SWOT analysis of the Chinese Market

External analysis (OT)

Opportunity:
In 2006 alone 27.5 million square meters of properties were built in the Shanghai. Large numbers of properties were built means people needs more house also furniture. So this will bring more and more customers.

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China is on the point of taking the leading position in global trading around the world. A new and growing middle class is experiencing dramatic increase in income, and with money, there comes consumerism. It is estimated that by 2025 china will be the third largest consumer market. This is means Chinese people get more and more rich. So purchasing ability will be rise. People maybe buy more Jysk products. This is an opportunity for Jysk Company.

These opportunities have high market attractively and high probability of occurrence, so they are should be a part of planning of Jysk Company.

Threat:
Cause China get rich, so more and more foreign companies have already decided to get a piece of the action and needless to say. Jysk Company will have more competitors, like IKEA. This is an important threat. This threat has high seriousness and high probability of occurrence, so should be focus.

And also, there are difference between Chinese culture and European culture, like “yellow means” problem. So Jysk should be able to adapt according to region and must respect the Chinese market. But china developed so fast, the culture difference on the decrease. So seriousness of threat is low and probability of occurrence is high. Then Jysk Company can surveillance this threat.

In china, the biggest problem is copying. It will be hard to avoid household names and products. But Jysk company has their own core competitiveness—high quality—it’s cannot be copied. Seriousness of threat is low and probability of occurrence is high, so Jysk should surveillance this problem.

Internal analysis (SW):
The strengths of Jysk Company are high quality…
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