Ikea Comperative Strategy

Essay specific features

 

Issue:

Business

 

Written by:

Shirley M

 

Date added:

July 2, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 460

 

Was viewed:

2035 times

 

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Essay content:

The followings are the realms that we identified as factors for IKEA’s pursuit for “Cost-Leadership” 1. Mail-Order Service, Distribution of Catalogue Kamprad started the IKEA business through mail-order catalogue in 1947. The mail-order service enabled Kamprad to invest less cash on the storage and display of the furniture provided, thus lowering the cost structure...
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Further, the widely distributed catalogues are also effective tools of promotion. 2. Independent Supplier Due to the pressure from the retail cartel members, IKEA was prohibited to manufacture through some furniture makers. However, Kamprad chose to outsource from Poland, which allowed him to access cheaper material and labor cost...
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