'How Has the Globalization of Markets and Production Benefitted Ikea?\r'

'How has the globalization of markets and takings benefitted IKEA? globalisation as we know it is the phenomenon of the world economies becoming reliant and compound with one another. This is otherwise known as the front characterized by denationalization where the world now becomes a global marketplace. IKEA is recognized to be a globalized mark with the susceptibility to spread their own finish and determine to over 300 stores in over 38 countries. The globalization of market refers to the merging of taste and preferences of consumers from in whole approximately the world resulting in an emergence of a single global marketplace.IKEA has thus used this concomitant to their advantage by shaping their business perplex to emphasize on standardization, customization and functionality. IKEA’s motto â€Å" atomic number 53 design suits all” is a simple further effective business model that has helped them cater to all the diverse markets around the world toda y. In ordinary IKEA results be standardized across markets and have risque functionality that cater to the needs of people in every(prenominal) country. IKEA also functions on the principle of offering furniture at low and afford fitting prices.Despite its low costs, products atomic number 18 still of high feel collectible to the ability to mass produce their products. Similar to Macdonaldization, IKEA has been able to state to the uniform taste of consumers in todays society and at the alike(p) time spread its own culture identity internationally. IKEA only uses different marketing and advertisement strategies for their various markets to better cater to the local consumers. Globalization of production refers to the outsourcing of raw goods and services to other locations around the world in order to maximize quality and minimize costs of various factors of production.In the case of IKEA, due to the high levels of standardization in all their products they are able to m anufacture products in bulk and thus enjoy the cost savings from the economies of scale. This way, cost of production is kept low and goods are always efficiently produced. Furthermore, IKEA is also known to use a ludicrous supply chain strategy where they outsource productions of product/furniture parts to low cost growing countries located nearby their store locations (e. . China, India). From this, IKEA is also able to establish good relations with local suppliers in many locations to negotiate mutually beneficial contracts to she-bop high quality products at lower costs. This order of merging intercultural communication into their business model allows IKEA overtake potential problems and succeed in globalizing their production. At the same time this also helps IKEA drive local competition out of their way.\r\n'