Although demand for IKEA's low-cost furnishings has increased,its annual store growth has slowed to fewer than ten new stores a year.Why has this happened?
A) IKEA has failed to hire top designers for its furniture.
B) IKEA's global supply chain has become bottlenecked.
C) IKEA has had a revolving door of CEOs for the past 20 years.
D) IKEA's holding companies are all located in Sweden.

Question

Quizplus · Accepted Answer

As discussed in Chapter Case 10, IKEA's global supply chain has become a bottleneck. IKEA has difficulty finding suppliers that are a strategic fit with its highly efficient operations. Related to this issue is the fact that wood remains one of IKEA's main input factors, and the world's consumers are becoming more sensitive to the issue of deforestation and its possible link to global warming. In the near future, IKEA must find low-cost replacement materials for wood.

Although Demand for IKEA's Low-Cost Furnishings Has Increased,its Annual Store