International Business Closing Case 1

International Business Closing Case 1

  • Submitted By: jerrynoise
  • Date Submitted: 03/12/2009 1:55 AM
  • Category: Business
  • Words: 659
  • Page: 3
  • Views: 714

Summary
IKEA ' one of the world’s most successful retailer…
Established by one man in 1943 and still being owned by him as a private company we could almost say that he might be the richest man in the world with the kind of Sales this company earns per year. This is due to having 230 stores in 33 different countries. The success you may find out that it is in the target group their focused on. Offering the global middle class people who are looking for affordable prices on a variety of quality attractive home furniture and accessories. Worldwide each company has the same basic set of values as the original IKEA, meaning that the customer would have to pass through all the departments, huge promotions, and also restaurants and care facilities. The results that IKEA gets from a customer is for example that they come in to buy a $40 coffee table and ends up spending more than $500 on everything from storage units to kitchenware. Each year IKEA aims to reduce their prices lower by 2 % to 3% per year, with a network of 1.300 suppliers in 53 countries. IKEA tries to find for each and every item the right manufacturer, consider the Klippan love seat, which has sold some 1.5 million units since its introduction (originally manufactured in Sweden but then moved to Poland for lower-cost suppliers). After the demands for IKEA products grew they decided to use suppliers from where the big markets are located to avoid the costs of shipping the product all over the world (they are now 5 suppliers in Europe, 3 in United States and 2 in China). Even though IKEA has achieved global success with its product they have had to adapt their products with the preferences of the consumer in different nations like China, Europe and United States. After having to found out that products that are sold in Europe don’t do well in the United States they introduced products that are more fitting to the American consumers, they also did this with China by focusing on what the consumers prefer...

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