QUESTION

1) Describe the strategy used by IKEA to reduce or maintain the prices of its products but still maintain high profitability. Your answer should be in the areas of production management.

2) Explain the advantages of doing R&D towards cost reduction at IKEA through product design, sustainable material selection, supply chain and packaging.

3) Comment on the operations of IKEA in Malaysia and its strategy. Why do you think IKEA chose Cheras as its new location and maintain the Damansara location? Who are the market segments of IKEA?