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IKEA – THE GLOBAL TRAILER
▲
IKEA – THE GLOBAL TRAILER
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.
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
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
IKEA – THE GLOBAL TRAILER
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA
International Business Strategy of IKEA

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International Business Strategy of IKEA

  • 1.
  • 2. IKEA – THE GLOBAL TRAILER
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12. IKEA – THE GLOBAL TRAILER
  • 13.
  • 14.
  • 15.
  • 16.
  • 17.
  • 18. 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.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26. 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
  • 27. 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
  • 28.
  • 29.
  • 30. IKEA – THE GLOBAL TRAILER