The Competitive Strategy

Running Head: Competitive Strategy
Competitive
Strategy
[Type the document subtitle]
Laptop04011
[Pick the date]

Competitive Strategy 1
Executive Summary
The case of competitive strategy for the company IKEA revolves around its objective to enter in
the Indian furniture industry. With the changing time, the government of India started making
entry laws more rigid and complex due to which it was difficult for companies like IKEA to
enter in such market. Further, the paper highlights the struggles faced by the company while
entering in the Indian environment along with the strategies that they should use to succeed. It
should be noted that the company should use transnational strategies in the environment to offer
products and services to customer. They should also make use of wholly owned subsidiary
strategy in the business environment in order to enter correctly in the India. It is recommended
that the organization should form strong bond with local suppliers in India.

Competitive Strategy 2
Contents
Introduction......................................................................................................................................3
Brief Summary of Case Study.........................................................................................................3
Identification of Key Strategic Issues..............................................................................................4
Relevant Theoretical Concepts........................................................................................................6
Application of Strategy Formulation theory....................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

Competitive Strategy 3
Introduction
The purpose of this paper is to enlighten the reader with the information about the case IKEA
aiming to enter in the Indian furniture industry. IKEA is one of the largest furniture retailers
present in the worldwide environment. With an objective to expand its scope of business in
international market and attract people of India, the organization focused on internationalizing in
Indian environment. However, the company faced several consequences in entering in the Indian
environment. The paper analyse the use of international strategy in business environment IKEA
in order to successfully enter in India. The environment of India is diverse and complex at the
same time. Different people have different preferences in the nation that creates threat for the
organization to attain profitability in the new environment. Further, more information about the
given case of IKEA entering in India and international strategies implemented by the
organization is mentioned below.
Brief Summary of Case Study
IKEA is a Netherlands based Swedish company that works in the furniture industry. The
organization provide ready to sell and DIY (do it yourself) products to the customers in different
parts of the world. The organization sell its products to total 44 nations in the world including
UK, US, EU, Japan, Russia, China etc. The organization thought of entering in the India in the
year 2013 in order to attain success in the worldwide environment. IKEA is a privately held
company that was inaugurated in the year 1943 by Ingvar Kamprad and became world’s largest
company in the year 2001. The name of the organization was influenced from the initials of the
owner of the organization along with the initials of his farm and hometown name. The objective
of the company is to produce goods in the market that can be used by people belonging all
income level. The products of the company are organized and income friendly as well that helps
the organization to increase its sales (IKEA 2020).
In the year 2015, the company had aimed to double its sales of €27.6 billion until the end of
2020. The website of the organization involves total 12000 products that represent entire range
of products that the company offer. The corporate structure of the company states that the
organization wanted to secure the position of the company from several takeover etc. financial