IKEA CASE STUDY Free Essay, Term Paper and Book Report
1. IKEAs firm specific advantages are plentiful. A combination of innovative modular designs whose components could be mass produced and a dedicated supplier network (2,300 suppliers in 67 countries) are the base of this Swedish Corporations firm specific advantage and success, by serving price conscious customers while adhering to a high standard of quality. This strategy relied on IKEAs ability to form exclusive contracts with independent furniture makers and suppliers, to design furniture that could be sold as a kit and assembled in the consumers home. Other firm specific and competitive advantages of IKEAs are that the product line is standardized, allowing for a global reach and economies of scale. Also, the knockdown kits could be stacked conveniently on racks allowing the stores to carry a large supply of inventory. These knockdown kit designs could be picked up by the customers themselves rather than having them wait for the furniture to be delivered. The store layout is also another important firm specific advantage. Consumers are able to visualize a complete roo......
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