1. What are IKEA’s firm-specific advantages? Country - specific advantages?

IKEA’s firm and country specific advantages could be the following:

IKEA sells the same furniture all over the world, so IKEA rips huge economies of scale from the size of its stores and the big production runs necessary to stock them.
IKEA also offers a low competitive price because of the economies of scale (30% lower than competitors)
Exclusive relationship between IKEA and its suppliers, offering modern and exclusive designs for IKEA. Designers also work closely with suppliers, keeping the costs low.
Ready-to-assemble kits help to stack products in shelves in order to maintain larger inventories.
The cash and carry shopping formula; you can go to the rack directly to collect the product and go home to build it by yourself.
Successful use of the word of mouth and the use of catalogues in order to reduce the advertising costs.
IKEA has simple and plain staff levels, lowering the fixed......

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Title: Ikea Specific Advantages
Approximate Word Count: 517
Approximate Pages: 3 (250 words per double-spaced page)

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