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msc415-ass1 - Assignment 1 IKEA case 1 IKEA's firm-specific...

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Assignment 1 IKEA case 1. IKEA’s firm-specific advantages consist of the innovative ready-to-assemble furniture, in which customers no longer had to wait for their furniture to arrive, but instead take it themselves the day they buy it. Another firm-specific advantage is its low cost and high quality. With IKEA’s designers working closely with suppliers and since the furniture is sold all around the world (giving huge economies of scale), it is able to match rivals on quality while undercutting price. IKEA’s country-specific advantage consists of its modern designs and the rising popularity in Scandinavian designs. 2. Some cultural factors that make expansion abroad in retailing difficult is the necessity to adopt a multi-domestic market approach due to cultural differences in terms of their preferences. IKEA adopted a global strategy, standardizing most of its products. It did indeed make some exceptions when coming to the United
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