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Certainly ruthless optimisation of their corporate structure with respect to tax helps contribute to their low prices: http://www.economist.com/node/6919139 htt
by coriny 9y ago
Certainly 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 9y 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 9y 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 9y 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 9y agoThey're the largest "nonprofit" in the world. I think we can differentiate between standard corporate behavior and the single largest outlier.
- lawik 9y 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 9y 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...