MGM102H5 Lecture Notes - Rug Making, Ikea, Goodweave International
Document Summary
They compete on: design, differentiation, variety, low cost, added value. Rug making expertise there (good quality), lower costs (low wages), take advantage of excess rug making capacity (large population in rural areas, over supply of employees and production, low demand for rugs at domestic levels) Fire them for breach of contract; continue working with them; further investigation. Considerations: profit, image, reputation, corporate culture, quality, and social responsibility. Appeared on television, and announced that rangan contract cancelled. Decided not to participate in rugmark- not confident that they could deliver guarantee. Later discovered the documentary was fabricated; sued television company. Reinstated and gave settlement to rangan- built school.
