Ikea the Swedish home furniture based Delft, Netherlands the world’s largest furniture retailer. Ikea main concept is based on delivering a well-designed home furnishings products at low price as many people as possible, this concept contributed to help more people that could not afford expensive designed products.
John Dunning approach
John Dunning approach was conducted study on how FDI motives multinational companies to take advantages where he introduces four different type of FDI, that aims to understand intersect between FDI and country competitive advantages. (John H. Dunning & Rajneesh Narula, 1993)
• Resource seeking where companies got access to natural resources to acquire raw materials that allows advantageous …show more content…
The main core position of the company is to create low cost well designed furniture with the promise of more than low cost to the customers, where Ikea believes to create long-term relationship of excellent, durability and responsive customer service.
Therefore, Ikea as multinational company should comply its strategies according to international law on trade, which gives benefit to the company as well protects buyer and employees.
Ownership …show more content…
This gives ownership advantage as company to compete global due to cost and design differentiation advantage.
Ikea-way and Technology Ikea has strong network with its suppliers that keep the company to be bargaining power on suppliers, where the suppliers follow code and conduct of that network (IKEA, 2011).
This I-way shall comply suppliers the demanding requirements on the relevant issues of Ikea way which includes child labour environmental protection and the safety hazards.
In addition, this also creates information eco-system of these organization so that the information within the company become flat system in which suppliers, employees and customers share their thoughts among the system.
The logistics strategy all over the world
Ikea’s strategy on logistic has been very efficiency as sometimes, the goods are not produced by one factory but different factories in different countries produce, (Li, 2010) and transport all the products to distribution centre.
Thanks to Ikea packaging design which allows the process to run smoothly and reach stores as well end customer without delay and