Describe IKEA’s intended international corporate-level strategy in India.

Words: 449
Pages: 2
Subject: Uncategorized

The Strategic Analysis must include the following (1) an identification of the company’s strategy, (2) an explication of the strategic issues facing the company, and (3) a recommendation plan for dealing with these issues. The purpose of this case is to examine the factors leading to IKEA’s decision to enter India, as well as to propose strategic actions to build a competitive advantage in this new market. Review the questions below before reading the case study materials linked to this case introduction: -What are the segments in the general environment that relate to IKEA’s situation? -What is IKEA’s choice of international entry mode? What are the advantages and disadvantages compared to other entry modes? -Describe IKEA’s intended international corporate-level strategy in India. Is it different from its earlier international strategy? -Identify IKEA’s current challenges in India. Based on your analysis, what recommendations would you make to help IKEA achieve its goals? Background: In June 2013, IKEA approved a plan to invest €1.5 billion to open 25 stand-alone stores across India. In the previous year, India reversed the course on foreign entrance by allowing 100% foreign direct investment (FDI) in single-brand retail. This shift in FDI regulation provided IKEA with an opportunity to enter at the retail level. Prior to 2012, IKEA had been sourcing materials from India for roughly 30 years. The company’s initial attempt to enter the retail market was thwarted in 2009 by India’s previously stringent regulations. In fact, the company had established a market research division to seek relationships with Indian companies. With the shift in FDI regulation, IKEA announced the objective of opening an initial 10 stores by 2023. However, there were still a number of regulatory issues restricting IKEA’s business model. For example, FDI in multi-brand retail was forbidden, meaning that IKEA could not sell its famous meatballs in a furniture store! The Company was also forbidden by the Indian government from selling furniture online in India. IKEA was also required to source 30% of its products from domestic SMEs (i.e. small-to-medium enterprises). This would limit the company’s ability to ensure global efficiencies, meet safety standards, and source from quality suppliers. Case Study: IKEA Adapting its service for India.pdf Company announcement: IKEA_Next Stop_India.pdf Relevant financials: IKEA_Financials_FY20.pdf

Let Us write for you! We offer custom paper writing services Order Now.

REVIEWS


Criminology Order #: 564575

“ This is exactly what I needed . Thank you so much.”

Joanna David.


Communications and Media Order #: 564566
"Great job, completed quicker than expected. Thank you very much!"

Peggy Smith.

Art Order #: 563708
Thanks a million to the great team.

Harrison James.


"Very efficient definitely recommend this site for help getting your assignments to help"

Hannah Seven