Price of Furnitures
IKEA could reduce the price of the Klippan
by some 40 % between 1999 to 2006.
IKEA gains competitive price.
Minimize Production Costs
Supply Chains in
Est. supplier relationships in Eastern Europe (e.g.
Czech Republic, Romania, Hungary) and in Asia
(e.g. China, Indonesia, Malaysia)
App. 1400 suppliers(2009) -China(22%),
Ownership of product rights
Well switching and close relationships
Allowfunctioningsuppliers when necessaryw/
suppliers of IKEA(est. 1991)
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
: IKEA CHINA
Planned 10 stores by 2010
Reflected the layout of Chinese apt in IKEA stores:
Home delivery Service: Rare car ownership