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They do have a well-proven track record of providing very good value for money, and I get the impression that they achieve the prices they do through ruthless o
by pdpi 10y ago
They do have a well-proven track record of providing very good value for money, and I get the impression that they achieve the prices they do through ruthless optimisation of their processes. I'm curious to see how that culture extends to software engineering (Provided they do it in-house).
- coriny 10y agoCertainly ruthless optimisation of their corporate structure with respect to tax helps contribute to their low prices: http://www.economist.com/node/6919139 http://www.economist.com/node/6919139. But it's nice to think that it could also be due to genuine technical ability.
- lawik 10y agoYeah, IKEA isn't really a saint, few corporations are. But they've done a lot of technical optimisation as well that should contribute to their low pricing. Flatpacks, big production runs, design stuff to be cheap to produce. A whole bunch of things. And while I doubt their morals (corporations rarely have any) I generally have faith in their quality-to-price ratio. Not a resounding endorsement, just have had few problems.
- pythonaut_16 10y agoAnd honestly if a company is going to evade or limit their taxes passing on part of the savings to consumers if fairly benevolent (if the tax avoidance contributes to the price as GP claims).
- oh_sigh 10y agoOnly if the product is something which is generally useful and affordable for the entire population. Evading taxes on, say, megayachts and passing the savings on to the consumer doesn't seem particularly benevolent.
- cjbprime 10y agoThey're the largest "nonprofit" in the world. I think we can differentiate between standard corporate behavior and the single largest outlier.
- lawik 10y agoHmm, I wasn't familiar with them being quite that extreme. I've only heard people speak of it here and there and haven't read up on it. It is fascinating though, they take a lot of things to extremes.
- cjbprime 10y agohttp://www.insatiablefox.com/blog/2016/6/23/ikea-is-the-largest-charity-in-the-world http://www.insatiablefox.com/blog/2016/6/23/ikea-is-the-larg...
- lawik 10y agoYeah, I can imagine that if these things shake out well and I figure they should sell fine, IKEA will slowly add more and more software-driven stuff to their line-up. No idea if that means in-house software engineering, I imagine it wouldn't as they want to keep prices low. Just heavy QA? Or they might eat the cost for local development since the software cost is pretty small and doesn't scale up with the number of units produced.