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The case provides an update of the Catalan furniture industry, describing the entry and success of IKEA and the closure of half of the Catalan furniture companies. It addresses the question of why the Catalan companies did not follow IKEA's model and stresses the different configuration of the value chain.
The teaching objectives are: 1. To illustrate the complexities involved in international competition. 2. To help students address the trade-offs that going global or staying local can have for a company. 3. To illustrate the importance of understanding the location of each stage of your value chain and taking advantage of it.