Internationalisation Process in the Specific Case of Ikea
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The eclectic paradigm explains the internationalisation process from the complement of three essential factors, which are, the Ownership, Location and Internal advantages.
Therefore, we can see that IKEA developed a different concept in furniture and the way to do business for that époque. IKEA's catalogue, gave to them the possibility to reach a massive potential market. The IKEA's idea to supply furniture at low price, with modern and function styles, attracted people from different ages but especially young people. Its new way to stock furniture "flat pack", allow them to have available a number of different models in stock and reduced waiting time for the customers. Its concept of cash-and-carry, where the customer him/herself carry his/her purchase without need of thirds. All these new ideas represented to IKEA, its ownership advantage. Also, help them to strengthen its position in the market.
In 1952 the pressure of the Swedish retailers, took IKEA to search for new sources of furniture, and here is when established alliances with polish suppliers. Therefore, we can observe that IKEA went abroad not to produce but to purchase its production from a location, which had a lower cost in order to be consistent with its idea of the low cost. From the approach of the paradigm, it would be the Location Advantage.
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