1. How has the globalization of market benefited IKEA?
The globalization of market refers to the merging of historically distinct and separate national markets into one huge global marketplace. Falling barriers to cross-border trade have more easier to sell internationally, so it is easier for IKEA to grow into a global cult brand with 230 stores in 33 countries and have 5 suppliers of the frames in Europe, plus 3 in the United States and two in China. Because a fewer barriers to cross-border trade. IKEA can easily to open a store in other countries.
2. How has the globalization of production benefited IKEA?
The globalization of production refers to sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of productions, IKEA did a good job, in order to reduce the cost of cotton slipcovers, IKEA has concentrated production in four core suppliers in China. The resulting efficiencies from these global sourcing decisions enabled IKEA to reduce the price of the Klippan by some 40 present between 1995 and 2005, because in China we have cheaper labour and lower price of source, it will reduce the cost of production in IKEA, thereby allow IKEA to compete more effectively.
How has the globalization of markets benefited IKEA?
The IKEA name is synonymous with fantastic, contemporary furniture that is affordable to the average consumer. The masses love IKEA because it has allowed the world the opportunity to decorate and furnish their homes with a unique style that mirrors high-end sophistication without a high-end price. This concept started in 1943 in Sweden. It would have remained nothing more than a little gem in this small country had it not gotten the IKEA name out to the world. IKEA has such a great product and it definitely was allowed to grow thanks to the globalization of markets. With more and more markets opening...