An Analysis On IKEA Purchasing Strategy In China

With the rapid growth of the consuming need and fierce competition, the concept of supply chain which is to merge the product design, development, purchasing, logistic and retailing has replaced the traditional purchasing behavior. Modernized and centralized electrical purchasing has become one of the most important processes in the operation of the multi-international companies. More and more international purchasing companies have set up their purchasing center in China. However, due to the culture differences between Western and Eastern counties, the choice of the supplier, how to secure the right quality and delivery on time, and the more focus on social responsibility, all the international purchasing companies have to solve the problems of how to retain competitiveness with the low price strategy? How to take and implement social responsibility while remaining competitive price? How to secure delivery and right quality with huge order needs? By using Case study method, the thesis analyzes how Ikea carry out the purchasing strategy in China with low price, and good quality while maintaining its environmental friendly policy. The best buy policy, selection of suppliers, endeavor to the social responsibility and culture are the keys for the success of the purchasing strategy.The thesis consists of five chapters: Chapter 1 introduces the background, purpose and methodology; Chapter 2 defines the theories of purchasing strategy; Chapter 3 introduces Ikea's history and supplier chain; Chapter 4 analyses Ikea's purchasing strategy in China and the competitive advantages; Chapter 5 reveals why Ikea's purchasing strategy succeeds in China.