Slide the strategy of international business IKEA in india

The strategy of international business: IKEA in India Group 5... - It was originally a general store founded in 1943 by Ingvar Kamprad- IKEA has become a global home furnishings brand, b

The strategy of international business: IKEA in India

Group 5

- It was originally a general store founded in 1943 by Ingvar Kamprad

- IKEA has become a global home furnishings brand, bringing affordability, design, and comfort to people around the world

- By 2021, the company has expanded to a total of 445 stores and 225,000 total employees, with revenues of €41.9 billion

1 General information

I.Introduction to IKEA

2 Past noticeable actions and its achievements

Mottos of IKEA

“Through cost control”

the most global furniture retail brand 9th global retailer

Global revenue

$45.4 billion

“Making the store into an amusement

park”

THIRD

The Indian furniture industry is, as of now, very

fragmented

 Both an opportunity and a challenge that IKEA

must evaluate when expanding

The digital presence will be a strength in India

 Opportunity for IKEA to reach both the digital

generations and the older consumers

SECOND

FOURTH

The Indian furniture market is accelerating at a

significant pace

There is a very sizable market to be reached in

India

1 Reasons to enter India

2 Challenges

• The Indian furniture market is a low-cost

competition market where consumers are extremely price sensitive.

• IKEA is only ranked as the 7th largest furniture supplier

in India

P E S T E

- Allowing 100% FDI in the retail

sector

- Complex administrative framework

- Reduction of corporate tax

Increase in GDP

- Large and young population

- Cultural differences between India and Sweden

- High disposable income

- Continued urbanization

- Research and development (R&D)

- E-commerce development

3rd most renowned leader in the world

for social responsibility and environmental sustainability

- Healthy and sustainable living

- Climate positive initiatives

- Social equality and fairness

3 PESTEL analysis

L

LEGAL

- Legal policies and trading regulations

- Don’t have specific legislations on privacy and data protection

III IKEA’s business strategy in India

Low-cost strategy in India

Honeycomb structure

Regular structure

Low-cost strategy in India

Pressure of local responsiveness

IKEA sells additional spice boxes, pressure cookers, and flat pans

Its meatballs will have chicken and vegetables here instead

In India, there will be more bright colors and patterns

In the case of IKEA in India, the pressure for local responsiveness is relatively low because IKEA sells to the same basic customers worldwide: young, upwardly

mobile people who are looking for tasteful yet “disposable” furniture

Conclusion With high pressure for cost reduction and demand for local responsiveness is minimal, the best approach for IKEA in India is global

standardization strategy

IV Achievements in India

The firm sources products worth over €315 million annually It has over 50 local suppliers and 45,000

co-workers

IKEA has introduced a 400,000-square feet

Hyderabad facility offering its signature

do-it-yourself furniture

During COVID-19 pandemic, the sales of IKEA still recorded an increase in sales and some

noticeable achievements

INTERNATIONAL BUSINESS

Thanks for your

attention

If you have any questions, feel free to ask us!!!

~From Group 5 with love