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Case study of the globalization of IKEA

.... to expand into 33 different nations, operate 230 stores and have up to 410 million shoppers a year visiting their stores, generating sales of 14.8 billion ($17.7 billion). Globalization has made it possible for the unique Ikea approach of integrating sourcing, supply chain management and retail operations into a single location (Ghauri, Veronika Tarnovskaya, Elg, 2008). Ikeas strategy of having each store as diverse as possible in terms of product selection and additional services has also differentiated their stores from the many other large-scale furniture stores. By concentrating on price points that are affordable for young professionals and families just starting out Ikea has also been able to gain significant customer loyalty in the area of furniture and furnishings purchases (Tarnovskaya,Elg, Burt, 2008). Due to the globalized supply chain the company has, they have been able to shift production of their best-selling items from one location to another to gain greater profits per unit as a result (Ghauri, Veronika Tarnovskaya, Elg, 2008). Finally globalization has made it possible for the company to set the aggressive target of reducing its expenses by 2 to 3% per year as their expertise in supply chains and retail operations make this an achievable