IKEA

1. IntroductionIKEA, the famous Swedish company, is the one of the largest furniture sellers in the world, which specializes in modern but inexpensive Scandinavian designed furniture. agree to Echeat (2006), the IKEA had more than 175 stores spread over 31 countries at the end of 2002 and worldwide sales of about 12.8 billion euros in 2004. During the IKEA financial year 2001-2002, a total of 60,000 people atomic number 18 employed by IKEA worldwide and there atomic number 18 323 trillion people visited IKEA stores around the world (Kronos, 2006).

IKEA?s mission is to put forward consumers good value for their money. The typical IKEA customer is young first base to middle income family. IKEA?s success in the retail sedulousness can be attributed to its vast experience in the retail market, product differentiation, and cost leadership (Echeat, 2006). As a spherical organization, the company is the world?s most successful sell firms based on its unique concept that the furniture is sell in kits that are assembled by the customers at home.

1.1 Operating strategyIKEA venereal disease not manufacture its own products, but works by dint of a complex network of suppliers around the world to back up company maintain its low-cost position. Actually, it has 1,800 suppliers in 55 countries. By providing the manufacturers with technical and financial assistance, IKEA establishes durable partnerships with furniture producers and suppliers.



To secure suppliers and encourage suppliers develop, IKEA also has launched partnerships as joint owners in several countries including Poland, Russia, and China.

due(p) to ?typically Swedish? style, all research and development activities are centralized in Sweden where determined what materials should be used and what manufacturers would do the assembly work. In addition to using high flock runs to cut costs, IKEA always believed that costs are kept under(a) control starting at the design level of the value-added chain. IKEA designers...

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