How Has the Globalization of Markets and Production Benefitted Ikea?

How has the globalization of markets and production benefitted IKEA? globalization as we know it is the phenomenon of the terra firma economies becoming reliant and integrated with 1 another. This is otherwise known as the trend characterized by denationalization where the world now becomes a global marketplace. IKEA is recognized to be a globalized set with the ability to spread their own culture and values to over three hundred stores in over 38 countries. The globalization of market refers to the merging of sense of taste and preferences of consumers from either slightly the world resulting in an emergence of a one global marketplace.IKEA has thus used this occurrence to their advantage by cause their wrinkle model to emphasize on standardization, customization and functionality. IKEAs motto iodin design suits all is a simple yet effective business model that has helped them give to all the diverse markets around the world today. In general IKEA products atomic numbe r 18 standardized across markets and have high functionality that leave to the needs of people in every country. IKEA as well functions on the precept of offering furniture at low and affordable prices.Despite its low be, products atomic number 18 still of high quality due to the ability to mass work their products. Similar to Macdonaldization, IKEA has been able to answer to the uniform taste of consumers in todays golf-club and at the same time spread its own culture indistinguishability internationally. IKEA only uses different marketing and advertising 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 manufacture products in bulk and thus have it away 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 excessively known to use a funny supply chain strategy where they outsource productions of product/furniture part to low cost developing countries located nearby their store locations (e. . China, India). From this, IKEA is also able to establish good relations with local suppliers in more locations to negotiate mutually beneficial contracts to get high quality products at lower costs. This method of merging intercultural communication into their business model allows IKEA repress potential problems and succeed in globalizing their production. At the same time this also helps IKEA drive local competition out of their way.