Essay Sample On Boys And Girls

Essay Sample On Boys And GirlsIf you are the writer of a research paper that you would like to submit, an essay sample on boys and girls may be useful for you. The students reading your research paper would likely see you as having personal experience with one or more subjects. This will be important in your appeal to readers, particularly if you are not familiar with the subject you are writing about. It is also a way to illustrate the points that you are trying to make in your article.A study on boys and girls should be given more attention than just what girls and boys do. The essay can highlight the differences in behavior between boys and girls. It may also explain why boys are different from girls. Other times, the essay can point out common characteristics among males and females.A list of particular characteristics will be very helpful in making this topic sound interesting. In an essay sample on boys and girls, it is helpful to be able to point out things that they have in c ommon. Often, people who are writing about boys and girls would include traits such as sports, safety, independence, and responsibility. An essay sample on boys and girls should include their interests and hobbies.A list of gender-related experiences can make this an interesting topic for an essay sample. How do the interests and activities of males and females differ? What are the differences in career choices? Are the major differences in interests, skills, and talents related to socialization? Are the physical characteristics and personality traits of males and females similar or dissimilar?Common characteristics might include eating habits, clothing, games, and the likes and dislikes of certain things. Other areas for research may be grooming and clothing. Age may also be considered. Boys and girls are not always seen as the same age, which is one reason that an essay sample on boys and girls can be helpful.Sometimes, people will also compare each of the two genders, and how the y are different and similar. This may be another reason that an essay sample on boys and girls is useful. This makes the essay idea more interesting and informative.Writing about subjects of interest can be a great way to write an interesting topic. This could include topics on life, history, religion, and nature. There are many different subjects that can be included in an essay sample on boys and girls. The choice of topic is up to the writer, but it is definitely an interesting topic.

Using Vivre in French Expressions

Using Vivre in French Expressions The French verb vivre literally means to live and is also used in many idiomatic expressions. Learn how to be at peace, move with the times, live to a ripe old age, and more with this list of expressions with vivre. Possible Meanings of vivre to liveto be alive(in the passà © composà ©) to be over, to have had its day, to be a thing of the past Expressions with vivre vivre au jour le jourto live from hand to mouthvivre aux crochets de quelquun (informal)to live/sponge off someonevivre avec quelquunto live with someonevivre avec son à ©poqueto move with the timesvivre avec son tempsto move with the timesvivre biento live wellvivre centenaireto live to be 100vivre comme mari et femmeto live as husband and wifevivre damour et deau fraà ®cheto live on love alone, to live a carefree lifevivre dangereusementto live dangerouslyvivre dans la crainteto live in fearvivre dans les livresto live in booksvivre dans le passà ©to live in the pastvivre deto live on, make a living fromvivre de lair du tempsto live on airvivre des temps troublà ©sto live in troubled timesvivre en paix (avec soi-mà ªme)to be at peace (with oneself)vivre largementto live wellvivre le prà ©sentto live for the presentvivre linstantto live for the momentvivre mal quelque chose  to have a hard time of somethingvivre que pour quelque choseto live for somethingvivre sa foito live out ones faithvivre sa vieto live ones own lifevivre son artto live out ones artvivre sur sa rà ©putationto get by on the strength of ones reputationvivre une pà ©riode de criseto be going through a period of crisisvivre vieuxto live to a ripe old ageavoir (juste) de quoi vivreto have (just) enough to live onà ªtre facile/difficile vivreto be easy/difficult to live withfaire vivre quelquunto support somone, keep someone goingsavoir vivreto know how to live (have a good life) or to know how to behave  se laisser vivreto live for the day, to take life as it comestravailler pour vivreto work for a livingÇa lui apprendra vivreThatll straighten him out. Lhomme ne vit pas seulement de pain.Man shall not live by bread alone.Il fait bon vivre.Its good to be alive.Il faut bien vivre  !You have to live!Il me fait vivreIt pays the bills, Its a livingIl vit un beau roman damourHis life is a love story come trueJe vais lui apprendre vivreIll teach him a thing or twoLaissez-les vivre  !Let them be!On ne voyait à ¢me qui viveThere wasnt a living soul to be seen.Qui vivra verra.What will be will be.La vie ne vaut pas la peine dà ªtre và ©cue.Life isnt worth living.Vive... !Long live ...! Hurrah for ...!Vive la France !Long live France!lart de vivreway of lifela joie de vivrejoy of lifele savoir-vivremannersle vivre et le couvertbed and boardle vivre et le logementroom and boardles vivressupplies, provisionscouper les vivres quelquunto cut off someones means of subsistenceà ªtre sur le qui-viveto be on the alertla vielifeCest la vie  !Thats life!vivant (adj)living, alive, livelyde son vivantin his/her lifetimela vive-eauspring tidev ivement (adv)brusquely, sharplyVivre conjugations

7 Things You Should Do in Your 20s to Become a Millionaire by 30

7 Things You Should Do in Your 20s to Become a Millionaire by 30 We all wish we could be rich. But if you’re young and smart and driven enough, you could be! In some cases, it is possible. Particularly if you’re able to make tough choices and choose to save where others choose to spend. Regardless,  one of the most important things you should be doing is managing your money responsibly. If done so correctly, you may very well become a millionaire by 30. That being said, here are 7 steps towards making your millionaire dreams come true. Start following them now before you hit the big Three-Oh.1. Write your planNo amount of desire is going to put the wealth in your account. You’ll need to actually come up with a feasible plan and put it on actual paper. Calculate exactly what you’d need to earn- and invest- to reach your goal. Then plan the options on how you’ll do it, whether that means focusing on a Roth IRA or a 401k, etc.2. SAVEYou can’t get there without this step. Period. Start saving immediately- fi rst an emergency fund, and then a high interest yielding account for everything you accumulate on top of that. Make a point of putting away half of every raise or tax refund, for example. And then don’t touch it unless an emergency occurs.3. Live cheaplyYou don’t need to be in poverty to live beneath your means. Just say no to high profile purchases that will crack open your budget- like expensive cars, extravagant houses, even expensive designer clothing and accessories. Live modestly, save decadently.4. Ease off on the credit cardsDon’t accumulate too many credit cards- one or two will do. And don’t put anything on your cards that you can’t pay off within three months. And if you can’t eat it- or wear it- don’t charge it. Keep your cash flow for investments.5. Put your money to workBuild a diverse portfolio with a mutual fund company that offers no-load funds and low expense ratios. You could be earning 8-10% interest on your money! 6. Start a businessA sizeable majority of millionaires are self-employed. Channel your entrepreneurial spirit and come up with a business plan to create wealth- and not just for yourself.7. Ask for helpFind yourself a good financial planner and make sure your investments are sound and working for you, not against you. If you build a good working relationship with someone you trust, you can really help your money grow.Remember, work smart not hard. It takes money to make money. But it’s never too late to start putting yours to work for you.

Reaction paper to the article The Role of Children in the Design of Essay

Reaction paper to the article The Role of Children in the Design of New Technology - Essay Example Is this was Druin proposes three main roles for children in the design process. Specifically these involve: user, tester, informant, and design partner. In this way children are tasked with becoming directly involved in the design process through engaging with the games and providing feedback. At later stages in the development they are tasked with actually giving advice to the designers about how the technology or game could be changed. The research then gives expansive consideration to the specific processes within these stages. A considerable amount of past research is advanced that considers how child-design interactions have been advanced in the past. Eventually the researchers advance the notion of cooperative inquiry. This aspect of the collaborative framework articulates how the child can best be utilized to gain insights on the design process. During the article’s conclusion the researchers establish a graph that articulates the historical evolution of human-computer interaction (HCI). This demonstrates that children have increasingly been given the opportunity to provide their insight into the design process. There are a number of considerations related to this article. One of the most prominent considerations is that the divisions the author establishes -- user, tester, informant, design partner – are highly simplistic in nature. In this way they constitute less an innovative framework and more a way of articulating common sense ways of engaging with children. While the author advances a number of research on the subject, in many instances this past research does not form a functional gestalt. Instead, it merely offers disparate ways that children have been used in the design process. Still, the researcher’s perspective on cooperative inquiry is effective in that it provides a structured process that can be used for a large variety of applications. In this way the researchers argue that the child and adult collaboration

Economical crisis facing the banking Industry Essay

Economical crisis facing the banking Industry - Essay Example However, some revenue comes from banking charges among other sources. The banking sector has developed due to some favorable factors like increase in population, hence customers, Good interest rates as stipulated by the central bank, improved security, advanced banking technologies and increase in banking professionals among other factors (Morr 2009). However, the same sector is compromised by some economic factors like the global financial crisis, increased unemployment rates and unstable interest rates among other factors. This work focuses on some of the economic crisis facing the banking industry. Different types of banking have different economical challenges. This work will consider both the retail and the mobile banking systems. The financial crisis is one of the major limitations facing the banking industry. It is defined as a situation where a certain banking institution in not in a capacity to run its operations due to lack of sufficient funds. Financial crises come in diff erent forms, for instance, currency crises, where there is insufficient currency in a certain nation (Angelides 2011). Here the banking institutions are forced to operate in different currencies which might be expensive in the long run. Bank crisis on the other hand applies if a certain bank has insufficient funds to lend its customers and pay its employees among other statutory obligations. Then there is the twin crisis which is a combination of currency and bank crises. Currency crises may result from unfavorable internal or external factors. A calamity or disaster like war and earthquake is likely to limit internal business operations which may lead to fall of economy in that nation. The country will have to pay more for its imports and this could lead to reduced currency. Cutting ties with super power nations like U.S may also compromise the strength of a certain currency. Bank crises on the other hand, are subject of both micro and macroeconomic elements. A bank is likely to la ck sufficient funds to perform its obligations due to bankruptcy, business merges; this is a scenario where a bank loses its business control on forming partnership with another business entity, or nationalizing the entire banking sector or a section. Global financial crisis left some huge France and U.S banks with suspended bonds due to incapability to do the valuations due to the frozen market. The banking default levels increased and this hiked the interest rates by an estimate of 5%. Global financial crisis (2007) limited the operations of the banking sector. The U.S legislators through President George W. Bush authorized financial institutions to provide some unsecured loans to the U.S citizens who wished to construct their own residential facilities. The problem arose when the citizens or real estate sectors failed to repay the loans (loan defaulters). The crisis affected the banking sector on a global scale. Although the government directed some state funds to settle the loan s, the financial facilities adopted some strategies to recover such loans. The central bank hiked interest rates for more revenues (Proctor 2000). This had some negative implications with the banking customers. Several agencies and businesses stopped operations waiting the interest rates to fall. Some opted to seek financial assistances from a micro - finance industry whose interest rates were not greatly affected. The crisis made some financial institutions close their operations for the lack of adequate finances. The banks had insufficient funds to loan its customers and even pay the employees. President Bush ordered for a committee comprising chief economists and financial managers to suggest for

Orion Nebula :: Essays Papers

Orion Nebula The Orion Nebula contains one of the brightest star clusters in the night sky. With a magnitude of 4, this nebula is easily visible from the Northern Hemisphere during the winter months. It is surprising, therefore, that this region was not documented until 1610 by a French lawyer named Nicholas-Claude Fabri de Peiresc. On March 4, 1769, Charles Messier inducted the Orion Nebula, M42, into his list of stellar objects. Then, in 1771, Messier released his list of objects for its first publication in Memoires de l’Academie.1 The Orion Nebula is one of the closest stellar regions to the Earth. Using parallax measurements, it has been estimated that this nebula is only 1,500 light years away. In addition, the Orion Nebula is a relatively young star cluster, with an approximate age of less than one million years. It has even been speculated that some of the younger stars within the cluster are only 300,000 years old. The Orion Nebula is an emission nebula because of the O-type and B-type stars contained within it. These high-temperature stars emit ultraviolet (UV) light that ionizes the surrounding hydrogen atoms into protons (H+) and electrons (e-). When the protons and electrons recombine, the electrons enter a higher energy level (n=3). Then, when the electron drops from the n=3 level to the n=2 level, an Hï  ¡Ã¯â‚¬  photon is emitted. 2 This photon has a wavelength of 6563 Ã…, and therefore corresponds to the red portion of the visible spectrum. It is these Hï  ¡ photons which give the nebula the distinctive red color which we see. The extreme brightness of the O-type and B-type stars, coupled with the Earth’s atmosphere, has always made high-resolution imaging of the star-forming region difficult. But recent advances in adaptive optics and the repair of the Hubble Space Telescope have allowed for incredible detail into the center of the dust cloud. 3 The technological advances have also helped reveal several faint stars within the center of the nebula. The Orion Nebula is a spectacular sight. Consequently, it has been a preferred target of the Hubble Space Telescope (HST) over recent years. The HST has provided a great deal of insight into the complicated process of star formation. In June of 1994, C.

The Competitive Advantage of Ikea

DEPARTMENT OF TECHNOLOGY AND BUILT ENVIRONMENT The Competitive Advantage of IKEA and IKEA in China Zhi Li June 2010 Master’s Thesis in Logistics and Innovation Management Master of Science in Logistics and Innovation Management Supervisor: Lars Steiner Abstract Title: Author: Supervisor: Purpose: The competitive advantage of IKEA and IKEA in China Zhi Li Lars Steiner The main purpose of this master thesis is to describe the IKEA concept and discuss the application in China.After research the history of IKEA, interview with the manager of IKEA store, and find the information from the web and thesis, use the theory of competitive advantage to describe the IKEA concept and the competitive advantage which is the way that IKEA used to get the success. Secondly, discuss the application in China and give IKEA the suggestions to develop the competitive advantage in China market. Methods: Because IKEA is not a public company, I cannot get too much data.I browsed the official website of IKEA to get much information about the introduction of IKEA’ corporate culture, strategies, copartner, history and the data of IKEA financial and work group. I find some English and Chinese books, thesis and reports try to find more data and more good ideas of Chinese scholars. Visit and observe the IKEA store and note my questions. I tried to have an interview with IKEA store in china, but failed. Fortunately, I got an interview with Hans Karlsson which is the logics manager of IKEA store in Gavle.He explained the competitive strategy of logistics, the competitive advantage about IKEA and the next step IKEA may do in china. Try to analysis the different culture and other problem that IKEA have to face. Analyze all the data and the idea I have got and use the theory of Michael Porter to finish this thesis. IKEA should have many innovations to adapt to the China market. â€Å"At IKEA our vision is to create a better everyday life for the many people. Our business idea suppor ts this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. (Our vision and business idea, http://www. ikea. com/ms/en_US/about_ikea/the_ikea_way/our_busine ss_idea/index. html) It seems not achieved in China market yet. Firstly, IKEA should have greater cooperation with local suppliers to get more competitive advantage of cost leadership. Secondly, according 1 Conclusions: to the specialty of China market, IKEA should have some more adjustment to satisfy so many China picky customers. Thirdly, IKEA should intensify propaganda work to let more customers understand and accommodate the IKEA model. As an outcomer, there is a long way to be the winner in this huge and potential market.After a long time to research the China market, IKEA already understand the China market more than before. With accelerating the speed of expand, the success of IKEA in China market is only the p roblem of time. Key words: IKEA, competitive advantage, IKEA model, China market 2 Contents page 1. Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 1. 1. Background †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 1. 2. Purpose †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7 1. 3 . Research question†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 1. 4. Structure of the thesis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 2. Theoretical framework †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 2. 1.The five competitive forces that determine industry profitability †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8 2. 1. 1. Bargaining power of supplie rs†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 9 2. 1. 2. Bargaining power of customers†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 9 2. 1. 3. Threat of new entrants †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10 2. 1. 4. Threat of substitute products †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 0 2. 1. 5. Competitive rivalries within an industry †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 10 2. 2. Generic competitive strategies †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10 2. 2. 1. Cost leadership †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 11 2. 2. 2. Differentiation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 2. 2. 3.Focus †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12 2. 2. 4. Pursuit of more than one generic strategy †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 12 3. Methodology †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 13 4. Findings †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 15 4. 1. The introduction f IKEA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 4. 2. The history of IKEA from the web of IKEA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16 4. 2. 1. 1920 †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 16 4. 2. 2. 1940s-1950s†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 16 4. 2. 3. 1960s-197 0s†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 4. 2. 4. 1980s †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 17 4. 2. 5. 1990s †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 17 4. 2. 6. 2000s †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 18 4. 3. The data from the web of IKEA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 19 4. 4.The information from interview †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 19 3 4. 4. 1. The logics process of IKEA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 19 4. 4. 2. The market segment †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 22 4. 4. 3. The logistics strategy all over the world†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 22 4. 4. 4. The China market †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 2 4. 4. 5. The next step that IKEA can do to increase the competitive advantage especially in logistics†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 23 4. 4. 6. The competitor of IKEA†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 23 4. 4. 7. The uniform of IKEA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 23 4. 5. The compare with the competitor of IKEA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 4. 6. The situation of IKEA in China at this stage†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 24 4. 6. 1. The reason of the price problem †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â ‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 24 4. 6. 2. The substance of the IKEA dilemma in China †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 24 4. 6. 3. The reason that the speed of IKEA develop slower than the competitor †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 24 4. 6. 4. The challenge and the innovation of IKEA in China †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 25 4. 6. 5.The disadvantage of IKEA in China†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 25 4. 6. 6. The model of IKEA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 25 5. Discussion †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 25 5. 1. The competitive advantage model of IKEA †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 25 5. 2. The three ways used to increase the competitive advantage †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 26 5. 2. 1.Overall cost leadership †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 26 5. 2. 2. Differentiation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 27 5. 2. 3. Focus †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 27 5. 2. 4. Pursuit of more than one generic strategy †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 27 5. 3. The suggestion for IKEA in China †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 5. 3. 1. The advertisement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 28 5. 3. 2. The company culture †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 28 5. 3. 3. The cooperation of local supplier †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 28 5. 3. 4. The environment-friendly products †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 29 5. 3. 5. Flexible strategies†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 9 6. Conclusions †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 29 4 Reference†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 31 Appendix †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 32 5 1. Introduct ion The purpose of this chapter is introduction the background of IKEA, the purpose, the research questions. 1. 1.Background â€Å"The IKEA Concept is based on offering a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. Rather than selling expensive home furnishings that only a few can buy, the IKEA Concept makes it possible to serve the many by providing low-priced products that contribute to helping more people live a better life at home. †(http://franchisor. ikea. com/showContent. asp? swfId=concept2). The IKEA Concept guides the way IKEA products are designed, manufactured, transported, sold and assembled.All of these factors contribute to transforming the IKEA Concept into a reality. In the booklet â€Å"the future is filled with opportunities†, Ingvar Kamprad, the founder of IKEA, says that:† IKEA does not just want to win your brain. IKEA also wants to win your he art. † No matter whom you are, formal education or informal education, a worker or a manager, you can find IKEA is a place which is full of opportunities. â€Å"It is up to you† is a common expression in IKEA. (Salzer, 1994) IKEA starts the furniture business in the 1940s. From a small company become to a world famous transnational corporation, the development speed of IKEA is very fast.According to the â€Å"IKEA at a glance- financial year 2009†, the IKEA trademark represents the leading home furnishings brand in the world with more than 300 stores in more than 35 countries, more than 15,000 co-workers and 46 production units. They sold totaled 21. 5 billion Euros at 2009. (http://www. ikea. com/ms/en_US/about_ikea/pdf/FF09_GB. pdf, 2010-5-29). How does IKEA develop quickly and keep strong competition in the furniture industry? That makes me have strong interesting about IKEA. With China join the WTO, more and more foreign companies entered China market. IKEA e ntered the China market in 1998.Recently the biggest IKEA store in Asia opened in Shenyang. But there are only 12 stores in China now. Compared with other foreign furniture companies, the development speed of IKEA is seems too slow in China. On the other hand, China is already become to the biggest purchasing country which is about 20%. But the sales per region are only 5% in Asia and Australia. What is the problem IKEA have in China? What should IKEA change in China? I will use theory of competitive advantage to find the reason why IKEA can get the success. Because the IKEA is not a public company, I cannot find too much data. So I 6 have to research the model of IKEA.I tried to have an interview with the manager of IKEA store in China to know the situation and the future plan of IKEA. Unfortunately, they did not have time. I tried to connect with the manager of IKEA in Gave. Luckily, the logics manager Hans Karlsson gave me a chance to have the interview. So we meet at 2010-05-21. He introduced the logics process of IKEA and answered some questions I have. But he cannot give me the data either. I browsed the website of IKEA, and read many books, journeys, even newspaper report to find the data, the introduction of IKEA model, and the opinions of foreign and Chinese scholar about IKEA.The research of this thesis contains the history of IKEA in Sweden, the IKEA concept, international expansion periods. Then I find out what IKEA should change in the future to adapt the China market better. 1. 2. Purpose The purpose of this thesis is to describe the IKEA concept and discuss the application in China. After research the history of IKEA, interview with the manager of IKEA store, and find the data from the web and the thesis, using the theory of competitive advantage explain the advantage, disadvantage, and situation of IKEA.According to the special situation of China market and Analysis the different opinions of IKEA, discuss how to develop the concept of IKEA to k eep the competitive advantage of IKEA in China market. Finally, get the experience to these foreign companies which want to enter China market and these Chinese foreign companies which are still in the early stage. 1. 3. Research question As the topics of this thesis are competitive advantage of IKEA and IKEA in China. After collect and analysis the information I got, these research questions will be solved.A, what is the competitive advantage of IKEA? B, what is the problem that IKEA have in China market? C, what is the next step IKEA should do to increase the competitive advantage in China market? 1. 4. Structure of the thesis The structure of this thesis is as the follow steps: 7 Chapter 1- introduction This chapter is to introduce the background of IKEA, the research purpose, the research question and the structure of this thesis Chapter 2- theoretical framework This chapter is to introduce the theory of competitive advantage which we will be used.There are including â€Å"the five competitive forces that determine industry profitability† and â€Å"generic competitive strategies†. Chapter 3-methodology This chapter is to describe the process that I find the question and use the methodology to solve the question. Chapter 4-finding This chapter is to introduce the information I collected. There are including the history of IKEA, the data from the web of IKEA, the information from interview and the opinions from other thesis. Chapter 5-discussion This chapter is use the theory and the finding to analysis the competitive advantage model of IKEA and discuss the three ways sed to increase the competitive advantage. Then, finds out the reason that helps IKEA get success. Chapter 6- conclusion According to the situation of China market, finds out the disadvantage of IKEA in China and gets the suggestions. 2. Theoretical framework The purpose of this chapter is to do the literature review of the five competitive forces the determine industry profitabi lity and the generic competitive strategies. 2. 1. The five competitive forces that determine industry profitability â€Å"The first fundamental determinant of a firm’s profitability is industry attractiveness.In any industry, whether it is domestic or international or produces a product or a service, the rules of competition are embodied in five competitive forces: the entry of new competitors, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the rivalry among the existing competitors. †(Porter, 2008) The collective strength of these five competitive forces determines industry 8 profitability. Figure 1: the five forces that shape industry competition http://sites. google. com/site/greenlightgocoaching/news 2. 1. 1.Bargaining power of suppliers The bargaining power of suppliers is also described as the market of inputs. The suppliers influence the profitability and product competitiveness by increasing the price of input s elements and reducing the unit quality value. The bargaining power of suppliers is depend on the inputs elements. When the inputs elements is big part of total cost, the inputs elements is very important in the product process or influence the quality of buyer product, the suppliers have strong bargaining power. (Porter, 2008) 2. 1. 2. Bargaining power of customers The bargaining power of customers is lso described as the market of outputs: the ability of customers put the firm under pressure, which also affects the customer's 9 sensitivity to price changes. The customers influence the profitability by asking for low price, good quality and service. (Porter, 2008) 2. 1. 3. Threat of new entrants When the balance of supply and demand is imbalance, the new entrants will be attracted by high returns of the profitable market. New entrants not only bring new technology and resource, but also reduce the profitability of all companies in this industry. (Porter, 2008) 2. . 4. Threat of su bstitute products Because the products could substitute, two companies which are in same industry or in different industries may compete with each other. Firstly, the profitability could be reduced by the substitute products. Secondly, because of the substitute products, companies have to improve the quality, reduce the cost and price, or make product more features. (Porter, 2008) 2. 1. 5. Competitive rivalries within an industry For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.Competitive rivalry is likely to be based on dimensions such as price, quality, and innovation. Technological advances protect companies from competition. This applies to products and services. Companies that are successful with introducing new technology are able to charge higher prices and achieve higher profits, until competitors imitate them. (Porter, 2008) 2. 2. Generic competitive strategies â€Å"Though a firm can have a myriad o f strengths and weaknesses compared with its competitors, there are two basic types of competitive advantage a firm can possess: low cost or differentiation. (Porter, 1985) The two basic types of competitive advantage influence the five competitive forces that determine industry profitability. â€Å"The two basic types of competitive advantage combined with the scope of activities for which a firm seeks to achieve them lead to three generic strategies for achieving above-average performance in an industry: cost leadership, differentiation, and focus. The focus strategy has two variants, cost focus and differentiation focus. â€Å"(Porter, 1985) 10Figure 2: three generic competitive strategies Each of the generic strategies involves different route and target to competitive advantage, â€Å"The cost leadership and differentiation strategies seek competitive advantage in a broad range of industry segments, while focus strategies aim at cost advantage (cost focus) or differentiation (differentiation focus) in a narrow segment. † (Porter, 1985) 2. 2. 1. Cost leadership Cost leadership is the clearest of the three generic strategies. In this strategy, firm should try their best to reduce the cost. If a firm can achieve and sustain overall cost leadership, then it will be an above-average performer in its industry provided it can command prices at or near the industry average. At equivalent or lower prices than its rivals, a cost leader’ low-cost position translates in to higher returns. A cost leader, however, cannot ignore the bases of differentiation. If its product is not perceived as comparable of acceptable by buyers, a cost leader will be forced to discount prices well below competitors’ to gain sales. This may nullify the benefits of its favorable cost position. (Porter, 1985) if customers think the product is not good as the product of competitor, the firm has to reduce the price. The firm can get high profitability until a cost leade r gets the cost leadership parity in the bases of differentiation. 11 2. 2. 2. Differentiation The second generic strategy is differentiation. â€Å"In a differentiation strategy, a firm seeks to be unique in its industry along some dimensions that are widely valued by buyers. It selects one or more attributes that many buyers in an industry perceive as important, and uniquely positions itself to meet those needs.It is rewarded for its uniqueness with a premium price. The means for differentiation is peculiar to each industry. Differentiation is based on the product itself, the delivery system by which it is sold, the marketing approach, and a broad range of other factors. † (Porter, 1985) If the extra cost for differentiation is less than the premiums price, the firm which has the competitive advantage of differentiation can get better profitability than other firms in the industry. Because the extra cost for differentiation is the disadvantage of the differentiation, the fi rm cannot ignore the cost position.So, only based on the price is almost the same as competitor, the differentiator could get the high profitability. 2. 2. 3. Focus The third generic strategy is focus. â€Å"This strategy is quite different from the others because it rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segment in the industry and tailors its strategy to serving them to the exclusion of others. By optimizing its strategy for the target segments, the focuser seeks to achieve a competitive advantage in its target segments even though it does not possess a competitive advantage overall.The focus strategy has two variants. In cost focus a firm seeks a cost advantage in its target segment, while in differentiation focus a firm seeks differentiation in its target segment. â€Å"(Porter, 1985) The firm can focus the time, the resource and the money on the segment to get the competitive advantage. If the firm can g et the competitive advantage of cost leadership or differentiation in its target segment, the firm could provide customer the better service and meet the special requirement. Because of the different requirements of customer, there are always many segments in one industry. . 2. 4. Pursuit of more than one generic strategy Each generic strategy is different way to create and sustain competitive advantage. Usually a firm has to choice one of them or it will become stuck in the middle. â€Å"The benefits of optimizing the firm’s strategy for a particular target segment (focus) cannot be gained if a firm is simultaneously serving a broad range of segments (cost 12 leadership or differentiation). Achieving cost leadership and differentiation are also usually inconsistent, because differentiation is usually costly.Conversely, cost leadership often requires a firm to forego some differentiation by standardizing its product, reducing marketing overhead, and the like. † (Porter , 1985) If a firm can use the strategies flexible, like use more than one strategy at the same time, this firm will get a great competitive advantage and market share. 3. Methodology Before I went abroad, I know many worlds’ Fortune 500 companies. All of them have the secret of success, like Coca-Cola have the unique recipe, the Volvo famous for the safety of the car and so on.But I never heard the IKEA before. When I started to study in Gavle, I want to buy some cheap articles for daily use, everyone told me to IKEA. Not only that, when I travelled in Europe, I found I can find the IKEA store almost in every city. Why IKEA is so popular? What is the secret of success? And why I never saw IKEA store in China? Does IKEA do not want have the market of China or IKEA is in a dilemma in China market? These questions attracted me so deeply. After I browsed the web of IKEA, I got some information of IKEA.The concept of IKEA is based on a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them and to helping more people live a better life at home. Simply, the target customer is everyone. The strategy is low price. And they use many ways to achieve the aim of low price like flat packs and self-assembly furniture. I noticed that the China had already become the biggest purchasing country which is about20%. On the contrary, the sale per region in Asia and Australia is only5%.IKEA have 192 stores in Europe, 12 stores in Russia, 48 stores in North America, but only 12 stores in China & Japan. (Source: financial year 2009 of IKEA) From the first IKEA store opened in China in 1998 to now, IKEA only open 8 stores in 10 years. The speed is much slower than other foreign furniture companies like British B which already had 38 stores in China. The strategy of IKEA is low price, but the China is already became the world factory and the logo â€Å"made in China† is became to the syn onymous with low price.After read some thesis and report about IKEA written by Chinese scholar, I find the price is too high to Chinese people because of the exchange rate. The concept of IKEA is providing most people low price furniture to help them have a better life at home, but most Chinese people cannot afford the price now. So I think IKEA must be in a dilemma in China. Then I wrote a these named â€Å"the dilemma of IKEA in China and ‘made in China’†. I wanted to analysis the situation of IKEA and suggest IKEA increase the number of purchasing from China to reduce the cost of goods. 3 When I discussed with my professor Lars Steiner, he have a different opinion. He asked me maybe IKEA do not want let most Chinese people afford the price, and maybe IKEA just want China to be a good purchasing base. That question really puzzled me a long time. Indeed, IKEA could treat China as a good purchasing base. Because the situation of China market is special, the chang e to adapt the China market may affect the global strategy of IKEA, even affect the earning performance. Data observed, experienced or recorded closest to the event, are the nearest one can get to the truth, distortions inevitably occur as the proximity to the event decreases† (Walliman,2005) So I want to have an interview with the manager of IKEA to get the further understanding. Because I want to research the China market of IKEA, I wrote e-mail to the customer service of IKEA store in Beijing and Shanghai. They replied me that thank me write the letter to them; they already send my e-mail to the manager and let me wait the reply of manager.After two month waiting, I received nothing. So I have to give up. After that, I try to write e-mail to the customer service of IKEA store in Gavle. Similarly, they replied me that thank me write the letter to them and let me to wait for the reply. Fortunately, Hans Karlsson which is the logics manager of IKEA store in Gavle told me I can get a chance to have an interview with him and he is very glad to help me. So I hurried to prepared the interview questions and get suggestions from my professor Lars Steiner.We meet each other in staff office of Gavle IKEA store on 2010-05-21. The first sentence of Mr. Karlsson is very sorry he cannot tell me too much data about IKEA because IKEA is not a public company. He introduced the history of IKEA, the concept of IKEA, the competitive strategy of logistics which is the most important way to keep the low price, the strategy of market segmentation, the situation of IKEA in China, explaining some good examples according to the model of competitive advantage, analyzing the next step which IKEA will do to adapt the problem of China market.IKEA is a world famous company and an example of success, but there are not too much theses and books to research IKEA, especially about IKEA in China market. Even I have a further understanding about IKEA though this interview, I still think i t is not enough to explain the situation of IKEA in China. Because Mr. karlsson is the manager of IKEA and China market is not one part of his job, he maybe just tell me the good side of IKEA and the opinion about China market is too one-sided. I think I also should refer to other people’s opinions which have suggestions to IKEA and deeper understanding of China market.That will be having a complete understanding about IKEA in China. So I ask help to my friend Guanying Liu which is studying the master of international economics in Shenzhen University. Unfortunately, she does not know too much about IKEA, but she provided me some theses and reports from the data library of her university. I collected the data, opinions and suggestions from these materials. After that, I found even these materials is not too much, I can get a general idea about the situation, the problem and the suggestions of IKEA in China.That make me have a more complete knowledge about the questions I want to research. 14 After the data-gathering process, I read the â€Å"The Five Competitive Forces that Shape Strategy† and â€Å"Competitive advantage† written by Michael Porter who is one of the most influential management experts in the world today. These theories in these books are very good tools to help a company to get the competitive advantage to extending volume growth. I use these theories in these books to analysis these data I collected. I find the success of IKEA is not got by lucky.The model of IKEA is a very good example to improve Michael Porter’s theories. These methods of IKEA used could learn by other companies, especially these Chinese companies which are still at an early stage. 4. Findings In this chapter, I will introduce the findings from the web, the history of IKEA, the information from interview. 4. 1. The introduction of IKEA Figure 3(http://cache. gizmodo. com/assets/images/gizmodo/2008/08/ikea. jpg) IKEA is one of the world famous furni ture companies. It was founded in 1943. As a 15 and which is one of Sweden band which have good unique style and brand image, IKEA band constantly strives to provide customers with the furniture which is pyretic, beautiful and practical, people can afford the household articles for use. 4. 2. The history of IKEA from the web of IKEA The IKEA story begins in 1926 when founder Ingvar Kamprad is born in Smaland in southern Sweden. He is raised on ‘Elmtaryd', a farm near the small village of Agunnaryd. Even as a young boy Ingvar knows he wants to develop a business. 4. 2. 1. 920 At the age of five Ingvar Kamprad starts selling matches to his nearby neighbors and by the time he is seven, he starts selling further afield, using his bicycle. He finds that he can buy matches in bulk cheaply in Stockholm and re-sell them individually at a very low price but still make a good profit. From matches he expands to selling flower seeds, greeting cards, Christmas tree decorations, and later p encils and ball-point pens. 4. 2. 2. 1940s-1950s The root of a furniture dealer Ingvar Kamprad is entrepreneurial in developing IKEA into a furniture retailer.This period sees the exploration of furniture design, self assembly, advertising, the use of a catalog and a showroom to reach the many people. Table 1: 1940s-1950s In 1951 IKEA founder sees the opportunity to sell furniture on a larger scale using a catalog. The IKEA catalog that we know today is born. In 1953 Furniture showroom opens in Almhult, Sweden, This is an important moment in the development of the IKEA concept – for the first time customers can see and touch IKEA home furnishings before ordering them. The innovation is a success; people wisely choose the products with the best value for money.In 1955 They start to think about the flat package 16 4. 2. 3. 1960s-1970s The IKEA concept starts to take shape. Table 2:1960s-1970 In 1960 The first IKEA restaurant opens in the IKEA store in Almhult, Sweden. In 1961 I KEA begins quality testing its products using Swedish testing standards. In 1962 Marian Grabinski designs the MTP bookcase. Developing this and other wooden products develops strong relationships between IKEA and Polish suppliers during the 1960s. These relationships continue today and are an important reason for IKEA maintaining low prices so that the many people can afford them.In 1965 The store's success leads to the opening of a self-serve warehouse – an important part of the IKEA concept is born. Additionally, Accenten is opened, where customers can buy quality cooking items at a low price. In 1976 Ingvar Kamprad writes The Testament of a Furniture Dealer and in 1976 it is published – it documents IKEA's vision and business idea and has a strong influence on the development and vitality of IKEA's culture. 4. 2. 4. 1980s IKEA expands dramatically into new markets such as USA, Italy, France and the UK. More IKEA classics arrive such as KLIPPAN, LACK and MOMENT.IKEA begins to take the form of today's modern IKEA. Table 3:1980s In 1982 The IKEA Group is formed and its owner is a foundation, the Stitchting INGKA Foundation, which is based in the Netherlands. In 1984 IKEA FAMILY, the new customer club, is launched. Today, IKEA FAMILY is in 16 countries (over 167 stores) and has about 15 million members. The IKEA catalog print run expands to 45 million copies, in nine languages. In 1985 IKEA now has 10,000 co-workers and 60 stores in the IKEA Group. 4. 2. 5. 1990s IKEA grows even more. Children's IKEA is introduced and the focus is on home 17 urnishing solutions to meet the needs of families with children. The IKEA Group is formed and responsibility for people and the environment is seen as a prerequisite for doing good business. Table 4: 1990s In 1991 IKEA acquires its own sawmills and production plants and establishes the industrial group Swedwood to produce wood-based furniture and wooden components. In 1997 Children's IKEA is launched. IKEA dec ides to develop a range specifically for children. In 1998 IKEA arrives in China. The first IKEA store opens in Shanghai. In 1999 The IKEA group grows to 50,000 co-workers and has 158 stores in 29 countries.On IKEA have the Big Thank You event. The total of all sales on this special October day, worldwide, is divided among all co-workers – in total about 84. 85 9, 1999 million Euros. It is a great way to thank hard-working IKEA co-workers for contributing to the company's ongoing success. 4. 2. 6. 2000s IKEA expands into even more markets such as Japan and Russia. Everything for the bedroom and kitchen is explored and presented in co-ordinate furnishing solutions. This period also sees the successes of several partnerships regarding social and environmental projects.Table 5:2000s In 2000 The code of conduct called The IKEA Way on Purchasing Home Furnishing Products (IWAY) is launched. It defines what suppliers can expect from IKEA and specifies what IKEA expects from its supp liers in terms of legal requirements, working conditions, active prevention of child labor, external environment and forestry management. In addition to this, IKEA also introduces The IKEA Way on Preventing Child Labor to ensure that no child labor is used by suppliers or their sub-contractors. Child rights project in India. E-shopping is launched in Sweden and Denmark.Since then many other markets have started offering online shopping at IKEA. In 2001 The IKEA Group trials running its own rail operations through IKEA Rail AB. The use of rail continues to be an important part of the IKEA strategy to promote sustainable transportation of IKEA material and products. A new product-recovery concept is implemented in more than 100 IKEA stores in Europe to ensure that returned products are, where possible, 18 In 2002 In 2005 In 2006 repaired instead of being wasted. Everything for the bedroom under one roof.IKEA customers help children in need The IKEA Group exceeds 100,000 co-workers and operates in 44 countries. 4. 3. The data from the web of IKEA The IKEA opened 15 new stores at 2008 and in august 2009 had 267 stores, which welcomed a total of 590 million visitors during the year. A further 34 stores are owned and run by franchisees outside the IKEA group. IKEA group sales totaled 21. 5 billion Euros. IKEA food services reported sales of 1. 03 billion Euros. The IKEA group had 31 trading service offices in 26 countries, and 28 distribution centres and 11 customer distribution centres in 16 countries.The swedwood group, the IKEA industrial group had 15,000 co-workers and 46 production units. (source: IKEA at a glance- financial year 2009) Table 6: the top 5 selling and supplier countries IKEA Germany The United States (10%) China (22% ) Poland (16% ) Italy (8%) Sweden (6 % ) Germany ( 6% ) Britain ( 9% ) France (9% ) Sweden ( 7% ) selling TOP (16%) 5 countries IKEA TOP 5 supplier countries (http://www. cnstock. com/paper_new//html/2007-07/20/content_57549571. htm) 4. 4. The information from interview In this chapter, I will introduce the information from the interview with Mr. Karlsson on 2010-05-21 at Gavle IKEA store. . 4. 1. The logics process of IKEA Mr. Karlsson introduced the logics process of IKEA. The following pictures show the process. There are four main parts in the logics process: supplier (factory), distribution centre (warehouse), store, the customer. 19 Supplier (factory): IKEA focus their force to the design. At this step, they consider the low price when they design new product. And then IKEA try to find the supplier all over the world according to many factor like the geographic position, the price, the quality and so on. Distribution centre (warehouse): IKEA has 28 distribution centres in 16 countries.These distribution centres use the same computer system. They collect the information about the sales volume of every product, the quantity of inventory, and so on. The distribution centre control the goods between factory a nd store, even sometime they package the goods which from different factories. The distribution centre also is the warehouse of this area. For example, the distribution centre in shanghai is the biggest distribution centre in Asia. They always gather the goods from all over the world to here. And then they send the different number of goods to every store in Asia according to the sales volume.The high efficiency of logics is the biggest strategy is a good way to keep the low price. Store: there are two part of IKEA store: open hall and warehouse. In the display hall, customer can get the complete information about the product. Through the open hall, IKEA show its function of products, quality and low price to customer furniture with the three-dimensional way. After the customer decided the product they want to buy, they can go to the warehouse to take the unopened product. There are not too much shop assistants in the store, which is a good way to reduce the operating expenses of st ore and keep the low price.Customer: after the customer brought the goods, they transport the goods by themselves. That is a way to reduce the cost of transport and keep the low price. There are 3 ways which IKEA used in logics process: 1, the DC delivery Figure 4: the DC delivery process In this process, they transport the goods from the factory to the distribution centre all over the world. Then according the condition of demand, they transport the goods to different stores. After the customers buy goods from the store, the store collect the information and send the information to the distribution centre.After analysis the information, IKEA send the new order to the factory. That is a loop. This way is the most common way IKEA used now. 2, the transit delivery 20 Figure 5: the transit delivery process Sometime, the goods are not produced by one factory. These goods need produced different parts by more than two factories and maybe these factories are in different countries. At thi s situation, they transport all parts of the goods from these factories to the distribution centre. They package these parts to a complete one in the distribution centre and then transport the goods to the store.The rest logics process is same like the normal way. 3, the direct delivery Figure 6: the direct delivery process This way is a special and high efficiency way. In this process, the goods do not need to transport to the distribution centre. The goods are directly delivered to the stores. So, they can save the cost of one time transport. And also this way can increase the use ratio of the warehouse. Mr. Karlsson told me this way of direct delivery is less than 50% in the total logics process and IKEA wish to increase the rate of this way to reduce the cost of transport.Actually, there are so many kinds of goods in IKEA and there are so many suppliers 21 and stores in all over the world. The process of logics is much more complicated than these pictures. 4. 4. 2. The market se gment The target customer of IKEA is everybody. So the market segment is a very important part of IKEA strategy. After visited the IKEA store, I think the market segment of IKEA is the different part of house, like the kitchen, the bedroom, the bathroom. Actually, the market segment is according to the â€Å"life situation†. The life situation creates the need of the home furniture.IKEA do not select the customer, IKEA just select the offer from the life situation. For example, I am a student. I need the bookshelf, desk and I do not need the kitchen because I do not live in my own place now. But after 10 years, the need of life situation will change. I will need other things. The most important point is that I am always the target customer even in different ages. And IKEA always provide customers the things they need. I think that is a good method that IKEA used to service the customers and win the hearts of the customers. Even there are so many products in IKEA.Not all of th e stores have the same goods. According to the local situation, IKEA adjust the goods in IKEA store. For example, there are not too much students in Gavel, so there will be less products for students than other IKEA store like the IKEA store in Stockholm or Linkoping. That is a good way to increase the use ratio of the store and the warehouse, and also minimize the cargo backlog. 4. 4. 3. The logistics strategy all over the world When I start to research the IKEA, I have a question whether the goods in IKEA store are the same price.So I compare the price of the same kind of good on the web of IKEA store in different countries. I found the price is almost the same. So I thought IKEA use the same logistics strategy all over the world. The exchange rate between RMB with Euro is the biggest reason that Chinese customer cannot afford the price of IKEA goods. But Mr. Karlsson told me that the logistics strategy of IKEA have difference between different country. The price of goods is decid ed by the cost of all of the process. The different place has the different cost, just like the big deal of McDonald, it will changed by different request of customer. . 4. 4. The China market Mr. Karlsson thinks the China market is huge potential. At the moment and in the future, IKEA will find more business opportunities include the supplier and the 22 market. IKEA is always changing. So the situation of IKEA in China will be better. For the question â€Å"do you think increase the purchasing quantity in China can reduce the cost and increase the competitive advantage? † Mr. Karlsson has the different opinion: he thinks the price is decided by the cost in the total produce and transport process.With the development of the China economy, China market seems not the cheapest place any more. 4. 4. 5. The next step that IKEA can do to increase the competitive advantage especially in logistics Mr. Karlsson think IKEA will continue to use and work with the concept of IKEA. There s till have many places they can do to increase the competitive advantage, like increase the direct delivery, use more train and so on. 4. 4. 6. The competitor of IKEA Mr. Karlsson thinks the IKEA is already an international company and IKEA is growing. So at the present time, the competitor of IKEA is not the international competitor.With the development of IKEA, the competitor of IKEA is the local competitor. Sometimes, the local competitors copy the good idea or counterfeit the goods of IKEA. To this situation, the important way IKEA used is the low price. IKEA get the lower price though the large-scale procurement. Low price, good quality, knight service and new design methodology or technology help IKEA occupied the market quickly. 4. 4. 7. The uniform of IKEA When I have the interview with Mr. Karlsson, I noticed that everybody ware the same uniform in the office.So you cannot distinguish who is the manager and who is the normal employee. And Mr. Karlsson told me IKEA not only s ervice the customer but also provide a comfortable environment for their employees. 4. 5. The compare with the competitor of IKEA After I research the data from the internet, I get a form about the competitor of IKEA 23 Table 7 The foreign furniture company Sweden IKEA British â€Å"B&Q† American Home Depot The time and the place of the first The number of store store in China now 1998 shanghai 8 1999 shanghai 50 At the end of 2006 successfully 12 purchased 12 stores in China. . 6. The situation of IKEA in China at this stage This chapter is to introduce some Chinese scholars’ opinions about the situation of IKEA. Chinese scholars could understand China market more clearly. So, I think their opinions could let me get deeper understand about IKEA in China at this stage. 4. 6. 1. The reason of the price problem There are 3 reasons that make the concept of IKEA change: a, the competitive advantage of low price is not clear and the price is always too high to customer. B, the challenge of high exchange rate make IKEA cannot have the same price in global.C, IKEA seems have the strategy of the high-grade brand positioning in China. (Sa Wang and Licheng zhang, 2008) 4. 6. 2. The substance of the IKEA dilemma in China The substance of the IKEA dilemma in China is which one is more important between localization and standardization. One side, IKEA use the standardization to run the China market. On the other side, IKEA the strategy of IKEA in China does not give full consideration to standardization. That makes strategy of IKEA do not have a good effect in China market. (Xiaofei Zhao, 2005) 4. 6. 3.The reason that the speed of IKEA develop slower than the competitor The IKEA stores in China are just the image shops. From 1998 to 2005, IKEA open 2 stores in China. These stores are used to collect the information and cultivate customer spending habits. From 2005 to now, IKEA enters to the acceleration stage. IKEA is developing in its own rhythm. (Chunhua He , 2009) 24 4. 6. 4. The challenge and the innovation of IKEA in China The challenge: A, IKEA is the â€Å"later comer†. Compared with other competitor, the speed of development is later. B, IKEA is the â€Å"Mr. Misunderstanding†.Because of the high price, the paradise of wage earners becomes to the place of high income bracket. C, IKEA is the â€Å"outcomer†. The Chinese customers still do not adapt the management style of Northern Europe. The innovation: A, IKEA changes the place of store from suburbs to prosperous areas. B, increase the number of service staffs C, increase the way of advertising (Benshun Cui 2003) 4. 6. 5. The disadvantage of IKEA in China A, do not provide the free transport service and free install service B, IKEA always buy land and build the store by them. This way is not only need a long time but also need too much money. Xiaofei Zhao, 2005) 4. 6. 6. The model of IKEA The model of IKEA could be generalized as a whole: one core, two strat egies, three marketing, and four fulcrums One core: insist on â€Å"Recreational Shopping† Two strategies: a, low price b, the model of chain operating Three marketing: a, transparent promotion b, Catalog c, one-stop shop for marketing Four fulcrums: a, cost control b, brand control c, management control d, and image control (Daqian Li, 2005) 5. Discussion 5. 1. The competitive advantage model of IKEA After the long time research, there is so much knowledge about IKEA.From the web, the interview, and especially follow the history of IKEA, we can find many methods which IKEA used to improve the competitive advantage. According to the theory of â€Å"competitive advantage†, I summarize these methods in to the table 8. 25 Table 8: the competitive advantage model of IKEA The five competitive The methods IKEA used forces that determine industry profitability Bargaining power of 1, looking for the suppliers from all over the world suppliers 2, cooperating with more than one suppliers 3,†IWAY† defines what suppliers can expect from IKEA and specifies what IKEA requires from its suppliers.Bargaining power of 1, low price customers 2,good quality 3, good service 4, high quality of design 5, wide varieties Threat of new 1, â€Å"Catalog† is a good way to advertise entrants 2, the scale effect 3, high-efficiently of logics 4, develop new products Threat of substitute A special team develops new products, updating technology, products promoting technological development Competitive rivalry 1, using the scale effect to get the low price 2, improving the public image within an industry 3, the model of chain operating 5. 2.The three ways used to increase the competitive advantage As a world famous furniture company, the secret of success behind IKEA is the strategy. 5. 2. 1. Overall cost leadership The strategy of overall cost leadership is always the IKEA’s biggest aim. We can find the history of IKEA is also the history of looking fo r low price. We can find IKEA try to find the low price at every part of the process. For example, before they design a product, they already confirm the price. They use â€Å"flat-package† to reduce the cost of transport. They reduce the staff in store to reduce the cost of store.They also use the scale effect to purchase goods from all over the world. 26 5. 2. 2. Differentiation Today's IKEA range consists of 9,500 home furnishing articles, designed to be functional and good looking but at a low price. You can find almost everything you need in IKEA. Both romantics and liberals can find the style they like. Customers need the goods low price and good quality. Low price or good quality is easy to achieve, but it is not easy to get both of them. At start, IKEA chose a different way which is stand on the side of everybody. IKEA also take children to their customer, and the spirit f care for children really wins many customers’ heart. IKEA also does a good job in environ ment protection. 5. 2. 3. Focus There are three main part of IKEA: IKEA office, home storage, Children’s IKEA. The target customer is everybody. According to the â€Å"life system†, they segment the market to many parts. That will be better meet the requirement of different customers. Especially the new design for child, it helps IKEA win many hearts from the customers. 5. 2. 4. Pursuit of more than one generic strategy Even these 3 strategies are interacting and affect to each other, IKEA use these strategies flexibly.That is the reason that IKEA can get much more competitive advantage than other competitors. A, cost leadership and differentiation Differentiation always needs the extra cost, and cost leadership always need company forego some differentiation by standardizing its product. The method IKEA used to solve this problem is design the price tag before design the product. They can seek the differentiation inside the price tag. The â€Å"flat-package† an d â€Å"self-assembly† not only save the cost of transport but also give the designer more room to seek the differentiation.B, cost leadership and focus If a firm services too much segment markets, it will not get the profitability of focus. IKEA use the â€Å"life system† to find out what the customer really need at different age. The people at different age need different furniture. After the segment though â€Å"life system†, the designer could understand the need of customer. So the designer could design the product which is low price and useful to the customer. This method not only segment markets very well but also can focus the resource to the cost leadership. It makes sure everything they produced is useful to people.After the research of the 27 local situation, IKEA could find out the need of local customers and change the goods in IKEA store. That could improve the use ratio of store and prevent the waste of transport. 5. 3. The suggestion for IKEA in China According to different situation, IKEA should change the strategy flexibly. 5. 3. 1. The advertisement The normal way IKEA used to advertise is the â€Å"Catalog†. If IKEA wants to get a good effect in China, IKEA should not only use the â€Å"catalog†. Because of the number population in China IKEA will find out the â€Å"Catalog† may spend a lot of money in the future.Because there are still a little stores in China, IKEA still a new name in China. If IKEA wants to open more stores in new city, IKEA should take the advertisement to the city before the store opened. 5. 3. 2. The company culture IKEA is already 60 years in Sweden. The customer already understands the company culture and the model of IKEA. Even IKEA already entered China about 11 years, Chinese customers still do not understand the model and company culture of IKEA. In the shadow of the high price, the concept which wants to improve the quality of life seems like an empty talk. IKEA need ti me to achieve the concept in China.But if the customer do not trust and support IKEA, the future of IKEA will not look good. So, the mission of IKEA right now is to advertise the spirit of IKEA to customer. Only after get the trust of customer, IKEA could have a better future in China. 5. 3. 3. The cooperation of local supplier There are 3 logics process that IKEA used. In the future, IKEA should increase the direct delivery to get more competitive advantage of cost leadership. Because China is a developing country, every technology and environmental awareness is still not complete. If IKEA want to find more cooperators in China, IKEA could provide more help to the cooperator.So IKEA can get more cooperation with the suppliers which fit the requirement of â€Å"IWAY†. Only increase the number of purchasing in China and get the scale effect, IKEA could achieve the aim that everybody can afford. 28 5. 3. 4. The environment-friendly products IKEA is a company which focuses on th e environmental protection. In China, the environmental awareness of people is not good as the Sweden people. Sometime, people will not choose the environment-friendly products because they think these products must be more expensive than normal product. If IKEA add the advantage of technology