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IKEA also has the ability to control their own distribution network to control the supply chain from production to consumer.
Increasing its market share, by growth (50 stores by 2013 in America) and creating a continued infiltration in the American consumer's minds and utilising that company's infrastructure will increase its presence, and this will have the effect of improve economies of scale and hence improve profitability and return on investment.
Production capabilities
By the selection of its own design, and price advantage (20% to 30 % below other distributors), it has the ability to purchase from currently approximately 1800 suppliers from around the world, thereby ensuring the best prices flow onto the customer...
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