Ikea India: Corporate, Business, Cooperative and International Strategies

Competitive Strategy
Case: Ikea India
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Executive Summary
This report is based on the case study of Ikea India who is looking to expand their business
operations in the market of India. The report includes the explanation and application of the
strategies that is followed by Ikea India. Business Strategy, Corporate Strategy, Acquisitions and
structure, International Strategy and Cooperative Strategy are some strategies which are mainly
implemented. Out of the above strategies some of the strategies are explained that are related to
the Case study of the Ikea India. The company had made use of the different strategies with the
help of which they can enter into the market of India. Along with this, the report includes the
findings which show that the company has performed the cooperative strategy for the welfare of
the people in India. Further, the business strategy of the company is majorly used by the Ikea
India which includes Cost-effective strategies, long-term relationship with suppliers and product
diversification.

Contents
Introduction......................................................................................................................................3
Company background......................................................................................................................3
Furniture Industry in India...............................................................................................................4
Application of the strategy in the Case of Ikea India......................................................................4
Corporate strategy........................................................................................................................4
Corporate structure..................................................................................................................4
Business strategy.........................................................................................................................5
Ikea entry in India....................................................................................................................6
Cost-effective Strategy............................................................................................................6
Product diversification.............................................................................................................7
A long-term relationship with Suppliers..................................................................................7
Cooperative strategy....................................................................................................................8
Working for welfare with society............................................................................................8
International strategy...................................................................................................................9
Global business strategy..........................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
The aim of the report is to talk about the strategies related to the case study of Ikea India. The
business model and competitive strategy of Ikea in the market of India is the case study on which
the report has been prepared. The report includes the application of some strategies out of
Business Strategy, Corporate Strategy, Acquisitions and structure, International Strategy and
Cooperative Strategy. The application of the strategy has been decided after reading the case
study of the Ikea India. The major focus has been done on the corporate strategy and the business
strategy that is followed by the company in the market of India. Furthermore, some of the related
strategies are discussed in the report that is based on the incidences took place in the case study.
Company background
Ikea is a well-known Swedish company who is operating in the 44 countries across the world as
the largest furniture retailer. The company have a presence in USA, Russia, EU regions, Japan,
Australia and China. Ikea was founded in the year 1943 by Ingvar Kamprad. The company didn't
enter into the Indian market until the year 2013 through the company was a presence in the
country from the year 1980s as the sourcing destination for the global stores. In 2007, the
company opened its regional procurement office in Gurgaon and in 2009; the company enter to
form the stores but was unable because it was thwarted by FDI. Ikea again applied for the
permission in the year 2012 after the change in rules in FDI. The company was expected to wait
for one more year to obtain the approval from the government for opening the stores. This time
will be utilized by the company in sourcing the outlines and preference of customers in the
market. The company was registered on new heights with the total of 298 stores in 26 countries
and with 139 000 employees.