The company sees tremendous potential in a number of global markets and intends to pursue geographic diversification as the primary means of growth. It is aided by globalization, which has allowed it to also diversify its supply chain. The ability of IKEA to enter and exit markets around the world, both as retailer and purchaser, has been facilitated by globalization. The eradication of trade barriers in particular has allowed IKEA to leverage purchasing economies of scale by purchasing globally to service its stores.

The company has consistently viewed efficiency improvements as a means of delivery improved profitability. IKEA leverages this opportunity by using its buying power, its strength in product design and by expanding globally to improve its economies of scale in countries and regions around the world. Though IKEA is a differentiated firm, it also competes as a cost leader, marketing its products at a relatively low price as...
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