IKEA

IKEA IN THE USA

I. Summary
IKEA is the world’s largest furniture retailer, which specialized, standardized but in stylish, inexpensive Swedish design. Its fully owned store has 150 in 28 countries worldwide with sales of $7 billion (Michael and Ronkainen, 2001). The company-pioneered move toward globalization in the furniture industry and perhaps one of the most successful multinational furniture retailing firms operating based its unique concept that furniture sold in kits that assembled by the customers at home. Furthermore, IKEA also gain advantages from its supplier worldwide through high-secured contract with high volume production that allowed selling its product in lower price (Groland Schoch, 1997). The founder of IKEA Ingvar Kamprad, established system that its costumers as ‘prosumers’ and its supplier as the customers (Michael and Ronkainen, 2001). The system has created value that allowed its product available in lower price but still in a good quality. Moreove...