International Business Case Study Essay

The first question how has the planetaryization of market benefited IKEA? The globularization of market refers to the merging of historically distinct and separate national markets into one long global marketplace. Falling barriers to cross-b holy order trade beget more easier to sell internationally, so it is easier for IKEA to grow into a global cult brand with 230 stores in 33countries and have 5 suppliers of the frames in Europe, plus 3 in the get together States and two in China. Because a fewer barriers to cross-border trade. IKEA can easily to open a store in other countries.the second question how has the globalization of production benefited IKEA? The globalization of production refers to sourcing of goods and services from locations around the testis to take advantage of national differences in the cost and quality of factors of productions, IKEA did a good job, in order to reduce the cost of cotton slipcovers, IKEA has concentrated production in four core suppliers i n China. The resulting efficiencies from these global sourcing decisions enabled IKEA to reduce the monetary value of the Klippen by some 40 present between 1995 and2005, because in China we have cheaper labour and lower price of source, it will reduce the cost of production in IKEA, thereby get IKEA to compete more effectively.What does the IKEA story teach you about the limits of treating the entire world as single interconnected global marketplace? In my opinion, every country is unique and has different cultures. If the strategies to provide low price of product offer a company must identify what and which factor that can bring the last-place cost in term of labour, transportation, materials and so on. IKEA first discovered 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 is obvious that tastes and preference play an weighty role in the globalization market. Also, since not everyone had a car, IKEA ensured that their stores were located near public transport.