The IKEA Company has several advantages that make it a favorite among furniture shoppers in the markets that it is operating. The first advantage is its ability to offer modern designs of furniture at a good value compared to other manufactures. Also, due to the huge sizes of its stores and a huge production team, IKEA can match its competitors on prices while undercutting them on costs by up to 30%. In the German market, for example, IKEA was successful due to their lower prices and the fact that their retailers adopted similar formula in their operations.
There are several factors that ...