International Business Case Study Essay Example for Free

International Business Case Study EssayThe first scruple how has the globalization of market benefited IKEA? The globalization of market refers to the merging of historically distinct and separate national markets into oneness huge global marketplace. Falling barriers to cross-border trade have more easier to sell internationally, so it is easier for IKEA to grow into a global cult brand with 230 interjects in 33countries and have 5 suppliers of the frames in Europe, plus 3 in the United States and two in chinaware. Because a fewer barriers to cross-border trade. IKEA can easily to open a store in other countries.the second question how has the globalization of production benefited IKEA? The globalization of production refers to sourcing of goods and services from locations somewhat the globe to take advantage of national differences in the cost and quality of factors of productions, IKEA did a good job, in order to reduce the cost of cotton slipcovers, IKEA has concentrate d production in four core suppliers in China. The resulting efficiencies from these global sourcing decisions enabled IKEA to reduce the price of the Klippen by some 40 present between 1995 and2005, because in China we have cheaper labour and number 1er price of source, it will reduce the cost of production in IKEA, thereby allow IKEA to compete more effectively.What does the IKEA story teach you about the limits of treating the entire world as wiz integrated global marketplace? In my opinion, every country is unique and has different cultures. If the strategies to provide low price of product offer a company must identify what and which factor that can operate the lowest cost in term of labour, transportation, materials and so on. IKEA first discovered in the early1990s. The company entrap that its European-style offerings. However, it didnt always resonatewith American consumers. Because of this reason, IKEA has redesigned its US offerings appeal to American consumers, which h as resulted in stronger sales. It is obvious that tastes and preference forge an important role in the globalization market. Also, since not everyone had a car, IKEA ensured that their stores were located near public transport.