IKEA THE GLOBAL TRAILER

IKEA THE GLOBAL TRAILER

 Price of Furnitures
IKEA could reduce the price of the Klippan
200 by some 40 % between 1999 to 2006.
100 IKEA gains competitive price.
0
 Minimize Production Costs
through outsourcing

Main Components Features

Est. supplier relationships in Eastern Europe (e.g.
Development of Czech Republic, Romania, Hungary) and in Asia
Supply Chains in (e.g. China, Indonesia, Malaysia)
Outsourcing Low-Cost Regions App. 1400 suppliers(2009) -China(22%),
All Production Poland(16%)
Activities Maintain Ownership of product rights
Product Rights Well functioning
Allow and closewhen
switching suppliers relationships
necessaryw/
suppliers
Subsidiary of IKEA(est. 1991)
Establishment of
Swedwood 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
 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

IKEA THE GLOBAL TRAILER