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Wednesday, February 20, 2019

International Business Case Study Essay

The first question how has the world(a)ization of market benefited IKEA? The globalization of market refers to the merging of historically distinct and elucidate national markets into one huge global marketplace. Falling barriers to cross-border trade hold in more easier to sell internationally, so it is easier for IKEA to grow into a global furor brand with 230 stores in 33countries 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 pot easily to open a store in other countries.the secant question how has the globalization of production benefited IKEA? The globalization of production refers to sourcing of goods and services from locations most the globe to take advantage of national differences in the cost and character of factors of productions, IKEA did a good job, in order to reduce the cost of cotton plant slipcovers, IKEA has concentrated production in four core suppliers in Ch ina. The resulting efficiencies from these global sourcing decisions enabled IKEA to reduce the price of the Klippen by some 40 present mingled with 1995 and2005, because in China we have cheaper labour and lower price of source, it leave behind reduce the cost of production in IKEA, thereby allow IKEA to argue more effectively.What does the IKEA story teach you about the limits of treating the entire world as single integrated global marketplace? In my opinion, every pastoral is unique and has different cultures. If the strategies to provide low price of product post a company must identify what and which factor that can receive the lowest cost in term of labour, transportation, materials and so on. IKEA first sight in the early1990s. The company found that its European-style offerings. However, it didnt always resonatewith American consumers. Because of this reason, IKEA has redesigned its US offerings appeal to American consumers, which has resulted in stronger sales. It i s obvious that tastes and preference play an alpha role in the globalization market. Also, since not everyone had a car, IKEA ensured that their stores were located confining public transport.

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