Business Model and Competitive Strategy of IKEA in India




Case Details Case Introduction 1 Case Introduction 2 Case Excerpts

Abstract

The Netherlands-based Swedish company IKEA, was the largest furniture retailer in the world with its presence in 44 countries around the globe – in countries like the US, the UK, Russia, the Euro region, Japan, China, Australia, etc. However, it did not enter the Indian market till 2013, though the company had had its presence in the country since the 1980s as a sourcing destination for its global stores.

After years of lobbying, and negotiating with and convincing the Indian politicos and bureaucrats, on May 2, 2013, IKEA's €1.5 billion investment proposal to set up its stores in India was finally accepted by the local government.

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Issuess

The case is structured to achieve the following teaching objectives:

  • Understand issues and challenges related to IKEA's business model and its competitive strategy
  • Understand issues and challenges related to IKEA's globalization and strategy in a key emerging market.
  • Understand issues related to IKEA's market entry strategy and expansion in India
  • Identify challenges that IKEA could face in the Indian market and explore ways in which these could be overcome.

Contents
Introduction
Background Note
Corporate Structure
Going Global
Manufacturing And Other Initiatives
Global Furniture Industry
Furniture Industry In India
Ikea's Entry Into India
Overcoming Regulatory And Political Roadblocks
Woking With Suppliers
Challenges
Looking Ahead
Exhibit

Keywords

Competitive strategy; Business Model; Competitive strategy; Hybrid business model; Bowman's ‘Strategy Clock'; Globalization strategy; Entry and expansion strategy; Emerging market; Competition; Localization; International Management; Retail; IKEA

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