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The followings are the realms that we identified as factors for IKEA’s pursuit for “Cost-Leadership”
1. Mail-Order Service, Distribution of Catalogue
Kamprad started the IKEA business through mail-order catalogue in 1947. The mail-order service enabled Kamprad to invest less cash on the storage and display of the furniture provided, thus lowering the cost structure. Further, the widely distributed catalogues are also effective tools of promotion.
2. Independent Supplier
Due to the pressure from the retail cartel members, IKEA was prohibited to manufacture through some furniture makers...
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