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