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International Business Strategy of IKEA

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International Business Strategy of IKEA

  1. 1. IKEA – THE GLOBAL TRAILER
  2. 2.
  3. 3. IKEA – THE GLOBAL TRAILER
  4. 4. Price of Furnitures 200 100 0 IKEA could reduce the price of the Klippan by some 40 % between 1999 to 2006. IKEA gains competitive price.
  5. 5. Minimize Production Costs through outsourcing Main Components Outsourcing All Production Activities Development of Supply Chains in Low-Cost Regions Maintain Product Rights Establishment of Swedwood Features Est. supplier relationships in Eastern Europe (e.g. Czech Republic, Romania, Hungary) and in Asia (e.g. China, Indonesia, Malaysia) App. 1400 suppliers(2009) -China(22%), Poland(16%) Ownership of product rights Well switching and close relationships Allowfunctioningsuppliers when necessaryw/ suppliers of IKEA(est. 1991) Subsidiary Evolved into a supplier with advanced production facilities of its own, mainly in Eastern Europe Source: Global Sourcing Development at IKEA – a Case Study Paper prepared for the 25th IMP conference
  6. 6. Transnational strategy : IKEA CHINA  Planned 10 stores by 2010  Reflected the layout of Chinese apt in IKEA stores: Balcony  Home delivery Service: Rare car ownership
  7. 7. IKEA – THE GLOBAL TRAILER

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