Ikea Products : Expand All Over The World

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IKEA products - expand all over the world IKEA’s supply chain has a global spread with growing sales and purchasing in all over the world. What makes its supply chain really success is that its stores are spread across many countries, that “it has 1220 suppliers in 55 different countries making its furniture and that the stores are supplied from 31 central distribution centres in 16 different countries or directly from suppliers” (Patrik Jonsson). In some cases, an IKEA store opening is a national event, with people sometimes travelling hundreds of kilometers to shop there. Internationalization of IKEA was extremely important because it pushed many of IKEA 's top managers to positions of responsibility, increases profit and brought IKEA…show more content…
Today the majority of IKEA products (66%) are purchased from manufacturers in Europe. However, as sited in staffs.uk, China is the largest single country for purchasing. Top 5 purchase countries are: China (18%), Poland (12%), Sweden (9%), Italy (7%), Germany (6%) (staffs.uk). Export - from local to the worldwide In today’s international trade environment, almost all companies doing their businesses in global trade. They are more willing to go aboard, if they are doing well in domestic market. IKEA is one of the perfect examples of expansion around the world. As we all know, IKEA was a local private company in Sweden Specializing in furniture and home decoration, owned by its founder, Ingvar Kamprad, and his family. However, by August 2005, the "foundation owned a grand total of 220 retail stores in 44 countries/ territories, employing 90,000 people" (global alliances). At the time of IKEA’s entrance into the US market in 1985, IKEA spent a decade struggling with low sales. The US furniture retailers were separated between high-end and low-end retailers. The IKEA 's low-end competitor is Wal-Mart; it was America’s number one furniture retailer. The low-end retailers focus on promotes their products on low pricing (IKEA Marketing Mix). The high-end competitor included both single-brand retailers such as Ethan Allen and Thomasville as well as multiple-brand retailers such as Jordan’s Furniture. The high-end retailers focus on luxury environment, they
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