IB Assignment-1
Case summaries and questions
Todor Garnenkov St. No. 09057536
Mihail Mihov
Lihua Sun St. No. 09058168
IKEA the global retailer
IKEA, which is one of the most successful global retailer was established by Ingvar Kamprad in 1943.With the efforts IKEA made, it has grown into a global business with 230 stores in 33 countries. It creates a great value of the sales of 17.7 billion dollars and host 410 million shoppers a year.
IKEA provides attractively designed furniture ,household items and low price which satisfy the middle class well. IKEA applies the same basic formula worldwide which is to open large warehouse stores. To drive traffic into the stores has been used as wacky promotions. In order to get the checkout, customers have to pass through each department and the add items of restaurants and child care have also guarantee the customers staying as long as possible which offer a big profit to IKEA.
IKEA tries to reduce the price of its offerings by 2 to 3 percent per year has helped it collect much attention paid by customers. It also pay much attention to finding the manufacturers for each item with a network of 1300 suppliers in 53 countries. Today, IKEA also succeed in working with suppliers of the frames(three in the US and tow in China) which avoid the costs associated with shipping the product over the world. The design of the product in IKEA reflects the theme of simple and clean. However, it also have to adapt its offerings by changing the style of its product to suit the different culture and different nations. It's stores in China focused on balcony section which based on the large quantities of balconies in Chinese apartment and the different choice of locations in different situations also proves that IKEA is able to adapt itself well to new environment.
1. How has the globalization of markets benefited IKEA.
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