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Business Strategy of IKEA - Doc

   

Added on  2021-06-14

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Running head: BUSINESS RESEARCHBUSINESS RESEARCHStudent’s NameUniversity NameAuthor’s Name

business research2Executive SummaryIKEA entered the Indian business domain in the wholly subsidised business mode. After theinitial stage, the organization faced several hindrances from the conservative Indian furnituremarket. In the Introduction section of the report, the various steps that IKEA have adopted tomake its market launch successful have been highlighted. In the discussion section of tisreport, the multi-channel business strategy of the organisation have been thoroughly studied.The most important and popular avenues of sales like physical sales and e-commerce saleshave been adopted by the organisation. Moreover, a detailed evaluation of the externalbusiness environment of the furniture industry of India have been evaluated in the report.SWOT analysis of the competitive strategy of IKEA in India have also been provided in thediscussion section of the report. However, even after 2 years of successful implantation in thecountry, the sales quotient of the country has not expanded. Therefore, recommendations forenhancing competitive advantage of IKEA have been provided in the scope of this report.

business research3Table of Contents1. Introduction............................................................................................................................32. Discussions.............................................................................................................................32.1 The Multi-Channel Business Model.................................................................................32.2 Present Scenario of the Furniture sales and manufacture industry of India.....................42.3 Roadblocks faced by IKEA due to government regulations............................................42.4 Corporate partnership strategy and economic competency of IKEA...............................53. Environment Analysis of the retail business of IKEA in India..............................................63.1 SWOT analysis.................................................................................................................63.1.1 Strengths....................................................................................................................63.1.2 Weaknesses................................................................................................................63.1.3 Opportunities.............................................................................................................63.1.4 Treats.........................................................................................................................74. Recommendations..................................................................................................................84.1 Demographic market segmentation of Indian Customers................................................84.2 Advertising Campaigns....................................................................................................94.3 Increase in the annual investments...................................................................................9Conclusion................................................................................................................................10

business research41. IntroductionIKEA have been operating for 30 years in Pan-Indian market domain. In India, IKEA wasforced to tweak its global strategy to compete in the price competitive low run economy. Inorder to keep the prices affordable, the organization has adapted the strategies of self-assembling and DIY designing. This strategy along with other important corporate strategieslike complex corporate structural planning have been discussed in the findings section of thisreport. In order to fit in the Indian retailing periphery, the organization has adopted severalbasic plans like price competitiveness, quality retention and the DIY conceptualisation.Various other cross cultural and demographic factors that plays a decisive role in shaping thesuccess of IKEA in the Indian market have been discussed and analysed in detail in thecourse of this report. 2. Discussions2.1 The Multi-Channel Business Model In order to create an impactful presence in the Indian terrain, the Swedish company planned amulti-channel business strategy in India. According to Ehsan Ullah, Karlsson and DadaOlanrewaju, 2016, Indian customers have the access to both online and offline stores ofIKEA in India. Recently IKEA opened a new distribution facility in Pune. The facility is wellconnected to its Hyderabad warehouse. The 372,000 square feet facility is aimed atmaintaining the supply of entire Deccan region. Within, 2022, the company is planning toinvest at least INR 750 Crores more, in order to express itself as a Pan-Indian company. The spread of online retail business in India has prompted IKEA to launch its products in thee-commerce websites also. Other eminent furniture manufacturers in India like Godrej andDurian has their own retail websites. According to Fragouli, 2016, at the moment, IKEA has

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