IKEA's Business Strategy: Recommendations for Indian Market Expansion

This report examines IKEA's expansion plans into the Indian market, focusing on recommendations for successful market entry and competitive advantage. The analysis considers the unique challenges and opportunities within the Indian market, including consumer preferences, labor costs, and the competitive landscape with existing players like Urban Ladder and Pepperfry. The report suggests strategies such as conducting thorough market research to understand consumer behavior and preferences, developing effective marketing campaigns to build brand awareness and attract target audiences, and adapting the business model to cater to the specific needs of the Indian market. The report also highlights the importance of a multi-channel strategy, including physical stores and online presence, and the need to optimize logistics and distribution. Furthermore, the report emphasizes the importance of adapting to the local context, which requires understanding cultural nuances, and the need to offer products that resonate with the local market. Overall, the report provides insights into the critical factors that will influence IKEA's success in India, including the need for innovation, effective marketing, and a customer-centric approach.

International Business
Contexts and
Challenges

RECOMMENDATIONS
By considering the preceding discussion, it is identified that ikea wants to expand its
business and open new stores in Delhi, Mumbai and Hyderabad in terms of earning maximum
number of profitability and maintain its position in dynamic business environment. In regard of
this idea announces to plan for to open a large format stores in Mumbai, Pune, Delhi, Bangalore
and other fast paced states. Along with this, they also develop effective strategies and planning
for the multichannel strategy which is helpful in terms of focusing and helping in order to create
25 touchpoints by 2025. Moreover, ikea also focus prominently on the digital channels and also
expect online growth within the Indian market in terms of gaining higher position in market area
and also undertake higher contribution in the total e-commerce sector and consider 10 percent of
the overall revenue. Along with this, ikea also need to compete with its players including online
furniture organizations consider urban ladder, walamart and pepperfry in order to own the market
share and area of online business. Furthermore, for the retail business it is also important to
consider the changing factors across the world. Moreover, markets like Europe and other
developed or mature market follow the significant legacy and open physical stores that
prominently offer effective ideas in terms of opening their stores in the business area n ad also
helps in earning more and more profitability. Moreover, within the first phase company can
deliver its proximity of the store and also one their task within couple of days considering the
distribution center of Pune and also start online delivery services over there. Few suggestions are
as follows:
 Potential market research- Ikea is an international brand of furniture and home
appliance products in which they provide semi manufactured goods to customers for
reducing cost. But India is a different region in which labour cost is low and people do
not prefer to work themselves. Therefore, Ikea have to evolve and develop new practices
and be more creative for which they have to have ample knowledge about the market and
its trends in order to beat the exiting competitors. Thus, company needs to develop and
gather all the relevant and required information of the whole market and then target their
customer or potential buyers.
 Effective marketing- The activities conducted for developing and making products
available to consumers will be a waste if they are not marketed. Promotions and
marketing plays a vital role in develop a potential customer base and gain popularity in

the respective region. Ikea have to develop and outline, outstanding and innovative
marketing plans and campaign for attracting attention of public and more specifically of
those who are the target audience of Ikea in India. In order to succeed in Indian market
Ikea have to evolve and be more productive as making people in favour of the brand and
comforting them is not easy task in India.